Online registration is important for employers as they deduct the TDS from employees’ salary. In order to register online, you will be required to create an account first. PF registration is obligatory for companies with more than 20 employees.
Eligibility for EPF Registration
Employees Provident Fund (EPF) is a scheme that is regulated by the Employees’ Provident Fund Organisation (EPFO) and it was introduced due to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The work culture today depends on the welfare of employees, with employers scrambling to ensure their employees are entitled to the best care and benefits. An Employee Provident Fund is an initiative designed to offer social security benefits to employees of a particular organization, building stronger employee-employer bonds. In order to enjoy these benefits to the hilt, employers need to follow a set of rules and guidelines laid out, with registration forming the first step.
Companies which grow to a strength of 20 members are expected to register themselves within one month from the time of attaining this strength, with penalties applicable for delays in registration. Co-operative societies are expected to register if their employee strength increases to 50 or more and registered organizations continue to be under the purview of the rules and regulations of the Act even if their employee strength falls below the minimum specified number.
The Central Government can make it compulsory for organisations with less than 20 employees to contribute towards EPF by giving them two months’ notice. Organisations with less than 20 employees can also contribute towards EPF on a voluntary basis. The employee and the employer each contribute 12% of the employee’s basic salary towards EPF. In case the organisation has less than 20 employees, the employer’s contribution is 10%.
EPF Registration Procedure
For EPF Registration procedure, an employer can choose to register either offline or online, with the online option being the preferred mode for registration today. The registration form can be downloaded from the website of the Employees’ Provident Fund Organization (EPFO). Employers need to provide the following details to successfully register themselves.
- Name and address of company
- Head office and branch details
- Mention date of incorporation/registration of company
- Fill up details of employees – total employee strength
- Activity the business/enterprise is involved in – i.e. manufacturing, production, service, etc.
- Legal details – This pertains to legal status of a company, i.e. whether it is a private firm/public company, partnership or society, etc.
- Owner details, including designation and address of Directors and partners
- Particulars related to wage component of employees, i.e. total wage disbursed during a month
- Details of bank with whom company has banking relationship
- PAN details
- Basic details of employee (name, date of joining, salary, etc.)
A form titled “Proforma for Coverage” needs to be filled with the details mentioned above to finish the registration process. In addition to this Proforma for Coverage, employers are expected to submit Form 5A with Annexure 1 to complete the formalities.
EPF Registration Steps for Employers
- To register the organisation, the employer will need to visit the EPFO portal, which is https://www.epfindia.gov.in/site_en/index.php and click on the option that says, ‘Establishment Registration’.
- Clicking on ‘Establishment Registration’ will lead you to the next page, which is https://registration.shramsuvidha.gov.in/user/register, where the manual can be downloaded. The user manual must be read completely by a new user before registration.
- Click on ‘Sign Up’ Button.
- Clicking on ‘Sign Up’ will ask for the Name, Email, Mobile Number, and Verification Code to be filled. After these details are filled, click on ‘SIGN UP’ to create your account.
- There will be an option called ‘Registration For EPFO-ESIC’.
- The next page will give you an option called ‘Apply for New Registration’. Clicking on that will give two options called ‘Employees’ State Insurance Act, 1948’ and ‘Employees’ Provident Fund and Miscellaneous Provision Act, 1952’, which can be checked and then click on the ‘Submit’ button
- This leads you to a page where the details of the employer such as Establishment Details, eContacts, Contact Persons, Identifiers, Employment Details, Particulars of workers, Branch/Division, Activities, and Attachments are mentioned. All mandatory details that must be filled under each section are displayed with a red asterisk.
- The summary of the registration form can be viewed on the dashboard.
- Click on the ‘Submit’ button to submit the registration.
- This is followed by the employer’s Digital Signature Certificate (DSC) registration. For a fresh EPF registration application, DSC registration is mandatory.
- On completion of DSC registration, you will receive an email from Shram Suvidha with a confirmation that the registration has been completed.
Documents Required for EPF Registration Online
Employers are expected to furnish certain documents as proof in order to successfully register EPF. A list of below documents are required for online EPF Registration
- Copy of partnership deed if the company is a registered partnership firm
- A copy of the Certificate of incorporation for a Public or Private Limited Company. This should be issued by the Registrar of Companies
- Societies should furnish a copy of their registration certificate
- Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
- Societies should furnish a copy of the rules and objects of the society
- All legal documents which might be required under the Income Tax Act
- PAN details of company
- Partition deed
- Proof of incorporation – first sales invoice/ license issued by competent authorities
- Salary details of employees
- Balance sheet details
- PF statement and salary
- Number of employees that have worked for the organisation for the month
- In case the organisation has registered for GST, the certificate must be submitted
- First sale bill
- Cross cancelled cheque
- Bank details such as name, branch, IFSC code, and address of the bank
- Machinery and raw material purchased for the first time
Currently, the interest rate is 8.55%, and the interest that is earned is tax-free. Since the scheme was launched by the Indian Government it is safe and secure. Employees can also transfer EPF amount from one account to another in case they change jobs. The registration process is also simple when done online and can save time.
- What is the main purpose for an employer to register on the EPFO portal?
- What should the employer do in case the ‘Your Establishment is already registered’ message comes up if he/she clicks on ‘Get Details’?
- During the registration process, if the PAN is requested, which number must be entered?
- In case the employer does not fill the PIN details at the time of registration, can the details be filled at a later time?
- In case an individual is the Authorised signatory or employer of more than a single establishment, should the registration procedure be completed for every establishment?
- In case an individual is the Authorised signatory or employer of more than a single establishment, will the User ID be the same for all establishment?
- What is the main purpose for additional authorised signatories to provide their email and mobile details?
- What should the employer do in case he/she has forgotten User ID and/or password?
Employers will not be able to generate the challan online in case the establishment is not registered. The employer will also need to register to create the User ID and password in order to access the details on the EPFO portal.
The employer must check if the right EPFO office has been selected, and the correct extension number and code number have been entered. In case the details that have been entered are correct, a ‘RESET REGISTRATION’ mail must be sent to the EPFO Helpdesk (firstname.lastname@example.org).
The PAN provided by the Income Tax of India which is in the establishment’s name must be entered. The name entered must be as per the PAN.
No, in case the PIN is not filled up at the time of registration, the employer will need to fill up all the details again and request for a new PIN.
Yes, the registration procedure must be completed for each establishment separately.
No, the User ID will be different for each establishment.
Email and mobile details are used to communicate other EPF account details after the registration process is complete. In case profile details are edited, the new details will be sent to the additional mobile numbers that have been provided as well.
In case the employer has forgotten the password, he/she can click on the ‘Forgot Password?’ link that is present on the login screen. Once the Establishment ID, primary email ID or mobile number are entered, the password can be reset.