OneClick Business Solutions

One Click Business Solutions is one of the leading legal firms in India, that is registered under the Companies Act, 2013 & our Corporate Identity Number is U74999DL2019PTC362211.

Private Limited Company Registration in 7 days

Through OneClick - India’s leading legal technology firm trusted by over thousand entrepreneurs.

  • Fast-track your registration process.
  • Help you stay in compliance with Indian law.
  • Keep you informed of any law changes.
  • A dedicated business specialist.

Starting from ₹ 8,000/-

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EPF registration

The Employee Provident Fund (EPF) is a government-backed savings scheme aimed at providing financial security and stability to employees in India during their retirement years. Administered by the Employees’ Provident Fund Organisation (EPFO), the scheme requires both employers and employees to contribute a portion of their salaries towards the fund, which accumulates over time and earns interest. For employers, EPF registration is mandatory once certain conditions are met, ensuring compliance with statutory obligations and safeguarding the future of their employees.

Requirements for EPF Registration

EPF registration is compulsory for certain businesses and voluntary for others. The key requirements for EPF registration are:

  1. Employee Strength: Any establishment employing 20 or more employees is required to register under the EPF scheme. This includes various types of establishments, such as factories, industries, and other business organizations.
  2. Type of Establishment: EPF registration is mandatory for factories and establishments engaged in specific industries, such as textiles, engineering, and construction, even if they employ fewer than 20 employees.
  3. Wage Limit: The scheme applies to employees earning up to ₹15,000 per month. However, employees earning more than this threshold can still opt to contribute to the EPF voluntarily with the employer’s consent.
  4. Voluntary Coverage: Establishments with fewer than 20 employees can voluntarily opt for EPF registration. Additionally, employers and employees can opt for voluntary coverage even if their salaries exceed the wage limit, provided both parties agree.
  5. Contribution Requirements: Both the employer and employee contribute 12% of the employee’s basic salary and dearness allowance towards the EPF. In certain cases, such as smaller establishments, the contribution rate may be reduced to 10%.

Why Choose to Make EPF Registration?

EPF registration offers several advantages to both employers and employees. Here’s why you should consider registering for EPF:

  1. Financial Security for Employees: EPF is a long-term savings scheme that ensures employees have a financial cushion during their retirement years. The accumulated funds, along with interest, provide significant financial support when employees retire or in case of unforeseen circumstances such as disability or death.
  2. Legal Compliance: EPF registration is a statutory requirement for businesses meeting the eligibility criteria. Non-compliance can result in severe penalties, legal action, and damage to the company’s reputation. Registering for EPF ensures that your business adheres to labor laws and avoids any legal complications.
  3. Attractive Employee Benefit: Offering EPF as part of the employment package makes a company more attractive to potential employees. It demonstrates a commitment to employee welfare and can help in attracting and retaining top talent.
  4. Employer’s Contribution as Business Expense: The employer’s contribution to the EPF can be claimed as a business expense under the Income Tax Act. This reduces the overall tax liability of the business, providing a financial benefit to the employer.

Social Responsibility: By contributing to the EPF, employers play a crucial role in the social security of their employees. It reflects the company’s commitment to the well-being of its workforce and enhances the company’s reputation as a responsible employer.

Documents Required for EPF Registration

To successfully register for EPF, certain documents must be provided. These documents ensure the authenticity and credibility of the business and its compliance with legal requirements. The key documents required are:

  1. Employer’s PAN Card: A copy of the PAN card of the business entity or the proprietor.
  2. Proof of Business Registration: Depending on the type of business, this could include the Certificate of Incorporation, Partnership Deed, or any other registration certificate.
  3. Address Proof: Proof of the business’s registered address, such as a utility bill, lease agreement, or other relevant documents.
  4. Bank Details: A copy of the company’s bank statement or a canceled cheque to verify the business’s banking information.
  5. Employee Details: A list of employees, including their personal details, salary structure, date of joining, and UAN (Universal Account Number) if available.
  6. Digital Signature: The authorized signatory’s digital signature for submitting the online application and other documents.
  7. List of Directors/Partners/Proprietors: This should include their details, identity proofs, and addresses.
  8. Factory/Shop License: If applicable, a copy of the factory or shop license issued by the respective authorities.

Conclusion

EPF registration is a crucial aspect of employee welfare in India, providing long-term financial security for employees and ensuring compliance with labor laws for employers. By registering for EPF, businesses not only fulfill their statutory obligations but also contribute to the overall well-being of their employees. With the right documentation and timely registration, employers can seamlessly integrate EPF benefits into their business operations, fostering a secure and supportive work environment for their workforce.

Have questions about Private Limited Company?

Who needs to register for EPF?

EPF registration is mandatory for establishments employing 20 or more employees. Certain industries are required to register even if they employ fewer than 20 employees.

How do I apply for EPF registration?

EPF registration can be done online through the official EPFO portal. The process involves filling out the necessary forms and submitting the required documents.

Is EPF applicable to all employees?

EPF is applicable to employees earning up to ₹15,000 per month. Employees earning more than this can also contribute voluntarily with the employer’s consent.

What are the benefits of EPF for employees?

Employees benefit from a long-term savings scheme that provides financial security after retirement. EPF also offers loans, advances, and insurance benefits in case of disability or death.

How long does it take to get EPF registration?

Once you submit the application with all required documents, EPF registration typically takes 7-10 working days.

What are the penalties for not registering under EPF?

Failure to register for EPF when required can lead to heavy penalties, interest on unpaid dues, and legal action. The employer may also face prosecution for non-compliance.

Can small businesses voluntarily opt for EPF registration?

Yes, businesses with fewer than 20 employees can voluntarily opt for EPF registration to provide benefits to their workers, although it is not mandatory.

What happens if an employee's salary exceeds ₹15,000 after registration?

If an employee’s salary exceeds ₹15,000 after registration, they can continue to contribute to the EPF voluntarily, provided both the employer and employee agree.

Can the employer claim EPF contributions as a business expense?

Yes, the employer’s contribution to EPF can be claimed as a business expense under the Income Tax Act, which can help reduce the company’s overall tax liability.

How do I update my EPF registration details?

You can update your EPF registration details online through the EPFO portal by logging into your account and making the necessary changes.

Starting from ₹ 8,000/-