Entities Covered Under ESIC

As per the government notification, under Section 1(5) of the ESI Act the following entities are covered:

• Shops.
• Restaurants or hotels engaged only in sales.
• Cinemas.
• Road motor transport establishments.
• Newspaper establishments (which is not covered under the Factory Act).
• Private medical institutions.
• Private educational institutions.
  

When the above-mentioned establishments employ 10 or more persons, the owner/employer of the establishment must compulsorily register it with the ESIC.

ESIC Registration Process Online

Earlier, there was manual registration. Now, the ESIC registration is completely online. Following are the steps involved in ESIC Registration:

Step 1: Log in to ESIC Portal

1. An employer needs to get himself registered on the ESIC PORTAL
   
2. ​An employer can register on the ESIC portal by clicking on the ‘Employer Login’ option on the home screen.
   

• On the next page, click on the ‘Sign Up’ button.

• After clicking on the ‘Sign up’ button, the employers need to fill in the details and submit the form.

Step 2: Confirmation Mail

• After submitting the form for sign up to the portal, the employer will receive a confirmation mail sent to the registered mail id and mobile number entered at the time of sign up.
• The email will contain the username and password details for registering as an employer and employee under the ESIC scheme.

Step 3: Employer Registration Form-1

• Next, log in to the ESIC portal by clicking on the ‘Employer Login’ option on the home screen and entering the username and password received in the email. This will redirect to the page having the option of ‘New Employer Registration’.
• Click on the ‘New Employer Registration’ option.

• Next, select the ‘Type of Unit’ from the drop-down list and click on the ‘Submit’ button.

• The ‘Employer Registration – Form 1’ will appear and the employer needs to fill in the details.

• On the Employer Registration Form-1 (ESI Registration Form), the employer needs to enter the details pertaining to the unit of the employer, employer details, factory/establishment details and employee details. Once, the complete form is filled by the employer, he/she needs to click on the ‘Submit’ button.

Step 4: Payment for Registration

• After submission of the ESI Registration Form, i.e. Form-1, the ‘Payment of Advance Contribution’ page will open where the employer needs to fill the amount to be paid and select the payment mode.
• The employer will need to pay the advance contribution for 6 months. 

Step 5: Registration Letter

• On the successful payment of six months advance contribution, the system generated Registration Letter (C-11) is sent to the employer which will contain a 17 digit Registration Number by the ESIC department.
• The Registration Letter (C-11) is a valid proof of registration of the employer.

The Registration Letter (C-11) is a valid proof of registration of the employer. The sample of the Registration Letter (C-11) is provided below.

Documents Required for ESIC Registration

Since the procedure for registration is online, no physical documents are required to be submitted. The documents required while filling the online registration form are:

• Registration Certificate obtained either under the:
  • Factories Act, or
  • Shops and Establishment Act.
• Certificate of incorporation of the establishment, which are as follows:
  • Certificate of Company Registration in case of a company.
  • Partnership deed in case of a partnership firm.
  • GST certificate of the establishment.
    
  • Memorandum of Association and Articles of Association of the company.
    
• Address proof of the establishment. Any one of the following can be submitted as address proof:
  • Utility bills (Electricity bill, gas connection bill or telephone bill of the establishment not exceeding three months)
  • Rental agreement of the land on which the establishment is situated
  • Property tax receipts of the land on which the establishment is situated
• A list of all the employees working in the establishment.
• PAN Card of the business establishment as well as all the employees working in the establishment.
• The compensation details of all the employees.
• A cancelled Cheque of the bank account of the company.
• List of directors of the company.
• List of the shareholders of the company.
• A register containing the attendance of the employees.

Benefits of ESIC Registration

The benefits of registering under this scheme are varied. Some of them are:

• Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness and which lasts for a maximum of 91 days in any year.
• Medical benefits to an employee and his family members.
• Maternity benefit to the women who are pregnant (paid leaves).
• If the death of the employee happens while on work – 90% of the salary is given to his dependents in the form of a monthly payment after the death of the employee.
• Same as above in case of disability of the employee.
• Funeral expenses.
• Old age medical care expenses.

Compliances After ESIC Registration

The establishment needs to comply with the following after registering under the ESIC:

• Maintaining the attendance register.
• Maintaining a complete register of wages for workers.
• Inspection book.
• Monthly return and challan within 15th of the succeeding month.
• Maintaining a register that records any accidents that happened on the premises.

Returns To Be Filed After ESIC Registration

After the registration under the ESIC, the employers have to file ESI Returns half-yearly. The following documents are required for the filing of the returns:

• Register of attendance of the employees.
• Form 6 – Register.
• Register of wages.
• Register of any accidents which have happened on the premises of the business.
• Monthly returns and challans.