The necessary registration of a firm with the Employees Provident Fund (EPF) plan under the Workers' Provident Funds and Other Provisions Act, 1952, is one of many compliances that a fresh enterprise must follow. EPF, which is governed by the government's Employees' Provident Fund Organisation (EPFO), is applicable to all companies with 20 or more employees.
While both employers and employees make contributions to the PF account, the system enables organizations and employees to save money for the latter's retirement and important/emergency situations like illness, higher education, marriage, etc. Employees may profit from the accrued funds in such circumstances.
Employers are required to contribute 3.67 percent of salaries each month, while employees are required to contribute 12% of their salaries (12% of basic income plus dearness allowance).
Moreover, because the account is portable from one employer to another, the employee's PF account remains the same regardless of how many businesses they work for throughout their lifetime.
Every month, the employee's PF contribution is credited to his or her PF account, and on March 31 of each fiscal year, the interest generated (8.15 percent for FY23) is put there as well.
Employer-required documentation for EPF registration include information about the company, such as its name, date of incorporation, PAN, a copy of its bank check, address verification, directors, employee identification documents, and information about its partners and directors.
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Visit the EPF website, then select "Establishment Registration."
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The Ministry of Labour and Employment's Shram Suvidha portal will appear. After registering for the portal, log in.
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On the left vertical panel, select "Registration For EPFO-ESIC," and on the right side of the screen, select "Application for New Registration."
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Choose the second provident fund choice from the list of two alternatives on the screen, "Employees' Provident Fund and Miscellaneous Provision Act, 1952," and then click "Submit."
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Several tabs, including Establishment Information, eContacts, Contact People, Identifiers, Employment Details, Branch/Division, Activities, and Attachments, will appear when the registration form window opens.
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The Identifiers tab, albeit all of the tabs are self-explanatory, looks for license information such as CLRA (contract labour registration act) license.
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Click "Save" after entering the necessary information on the "Attachment" screen.
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You'll see a condensed registration form. Click "Submit" after reviewing the information.
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Here's how to register for a DSC: click on "Digital Signature" and attach your Digital Signature Certificate (DSC).
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Once the DSC has been uploaded, a notice indicating registration success will appear along with an email from the Shram Suvidha portal.
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Online registration is cost-free for new businesses. EPF registration is necessary for multiple establishments or units in those cases.
