Only EPFO & ESIC registration compulsory not returns for newly incorporated companies through Spice+

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Compulsory registration of EPFO & ESIC for newly incorporated companies 

Compulsory registration of EPFO & ESIC for newly incorporated companies

As part of Government of India’s Ease of Doing Business (EODB) initiatives, the Ministry of Corporate Affairs notified new Web Form ‘SPICe+’ (pronounced ‘SPICe Plus’) replacing the existing SPICe form for incorporation of new companies.

SPICe+ would offer 10 services by 3 Central Govt Ministries & Departments (Ministry of Corporate Affairs, Ministry of Labour & Department of Revenue in the Ministry of Finance) and One State Government(Maharashtra)
  • Incorporation
  • DIN allotment
  • Mandatory issue of PAN
  • Mandatory issue of TAN
  • Mandatory issue of EPFO registration
  • Mandatory issue of ESIC registration
  • Mandatory issue of Profession Tax registration(Maharashtra)
  • Mandatory Opening of Bank Account for the Company and
  • Allotment of GSTIN (if so applied for)
As soon as MCA notified the new form , concern raised by stakeholders w.r.t compulsory registration of EPFO & ESIC. As, the governing acts of EPFO & ESIC i.e. The Employees' Provident Funds Scheme 1952 & Employees State Insurance Act, 1948 has specific threshold limits for applicability of the acts to any organization. As, compulsory registration will increase compliance cost for new companies as EPFO and ESIC registration will lead to filing of monthly returns. 

In response to the concerns MCA clarified w.r.t applicability of EPF & ESIC. As clarified by MCA and Ministry of Labour Only registrations under EPF & ESIC will be compulsory for new companies, but will have to file statutory returns specified under the acts, only when they cross thresholds prescribed under the relevant Acts.

It important to note that EPF & ESIC not applicable to newly incorporated companies from day one. These acts applies only after employing prescribed number of employees.

Ministry of Labour & Employment has issued press release to the effect that new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts. ( PIB dated 06 MAR 2020, No: 1605558)

Timely clarification by MCA and ML&E provides big relief to the new companies incorporated through Spice+ web application. 

Latest update in this matter: dated 21/11/2022
ESIC department issued circular dated 21/11/2022 wherein it has asked all such companies kindly login to ESIC portal and extend dormant status at every six months in case ESIC provisions not applicable due to zero employees or no of employees are below threshold. Read more

Read more about Spice+ web form here:
Features of Spice+

Filing of First PTRC return by Companies:

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