Employee Provident Fund commonly known as EPF is a social security scheme primarily introduced with the motive to help employees to save a small portion of their income/salary for future and long-term safety.
Every organization must offer its employees an Employee Provident Fund similar to a retirement fund. Employee’s Provident Fund and Miscellaneous Provision Act 1952 govern and regulate employee provident fund through an organization called EPFO (Employee Provident Fund Organization).
It is mandatory to get registered under EPF for certain organizations, the criteria we have discussed in this blog. Getting registered under EPF with all its compliances can be hectic for a normal person; therefore, it is advisable to hire a consultant with relevant expertise.
Let us understand in detail what EPF registration is and what its implications in India are.
Applicability of EPF Registration on Indian Employers
Following entities shall get EPF registration online mandatorily if they fulfill the following criteria:
- Factory with 20 employees or more during the year
- Such an establishment has less than 20 employees and has been notified to get compulsory registration
- It must be mutually agreed upon between employee and employer to apply for EPF to Central PF Commissioner
Procedure to get EPF Registration Online
From registration to compliance, each stage of EPF is made online through an official website of the Employee’s Provident Fund Organization.
Following is the checklist of details required for successfully registering the entity under EPFO:
- Name of the entity
- Address of the entity along with its branch and head office details
- Date of incorporation/registration of the entity
- The total strength of employees along with their Aadhar Cards
- Business activity for which the organization is registered
- Legal details such as the legal status of the company such as private, public, partnership, etc
- Details of the owner along with directors/promoters/partnership/
Follow these steps to get the EPF registration certificate:
- Visit the official website of the EPFO portal for online EPF registration
- EPF registration is divided into two parts, i.e., employer and establishment registration
- Select establishment registration from the portal that will lead you to the next portal, which is a common portal for PF/ESI registration “Shram Suvidha.”
- Sign up for the account by entering the details such as name, email-id, mobile number, and captcha.
- Select the option “apply for new registration” and thereafter fill in the details of the employer such as establishment details, contact details, employment details, branch/division details, and necessary attachments as required.
- One can review and edit the application through the dashboard.
- Finally submit the application online followed by affixing of employer’s
Benefits of EPF Registration
Following are the advantages of EPF registration to employees and employers:
- Besides the employee’s contribution, the employer adds equal contribution inclusive of the employee pension scheme
- Provident funds are the savior in extreme situations such as death, retirement, illness, etc. and it helps the dependent employees to cope with financial risk
- While switching the job, the employee can easily transfer its PF account since UAN is linked to Aadhar that facilitates the option of linking with the previous account
- EPF funds are said to be emergency funds that can be of great help during an accident, illness, wedding, or educational need.
- EPF funds can be claimed online easily
- An employee with a PF account is eligible for the Employee Deposit Linked Insurance Scheme which requires just 0.5% of premium
- PF account provides a helpful hand in the long-term, especially for goals with property purchases and the similar
Documents required for EPF registration vary as per the category of the applicant, such as:
|● Identity proof issued by the government● Identity proof and address proof of the owner
● Address proof of registered premise
● Bank details of the business
● DSC of the proprietor for authorized signatory
|● PAN of partnership firm● Certified copy of partnership agreement
● Identity proof and address proof of partners
● Address proof of the firm
● Bank details of the firm
● DSC of any partner to
|LLP or Company
|● Details of directors/designated partner● PAN of LLP/Company
● Identity & address proof of directors/partners
● Office address proof
● Current account details of the company
● Certified copy of COI/MOA/AOA
● Certified copy of LLP agreement
|● PAN of the organization issued by the government● Registration certificate of the entity
● Address proof of premise
● Bank account details
● Trust deed, if the applicant is trust
At present, the interest rate is 8.33%, and such interest is tax-free since the Indian government has launched this scheme to benefit employees and employers in the long term. Employers can transfer their PF amount from one account to another in case they change jobs. EPF registration online is a simplified procedure and 100% secure. Further to get assistance with labor registration and its compliance, contact Corpbiz.
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