ESIC compliances for newly incorporated companies
Ministry of corporate affairs (MCA) earlier this year launched Spice+ service for incorporation of companies through integrated web form which provides 10 services like registration under ESIC, PF, GSTN, Profession tax etc. I.e. Companies registered through spice+ form are compulsorily registered under these acts as well irrespective of strength of employees.
Earlier Ministry of Labour & Employment had 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). In simple words registration is compulsory for new companies under various labour laws but compliances are applicable only upon crossing of applicable threshold limits under respective acts.
However, ESIC letter No. P-11/14/19/Misc/02/2022-Rev.II dated 21/11/2022 instructed that, new companies should start compliance with ESIC provisions within next 6 months or date of crossing threshold limit of ESIC coverage (10/20 employees) whichever is earlier. If the company does not reach the threshold in six months, it has to login on the ESIC website to further extend the ‘dormant’ mode. In case, it does not extend the same, the registration will automatically activate and company has to start compliance under ESIC Act.
Accordingly kindly take note of this and don’t forget to extend period of ESIC applicability at interval of every six months by login to ESIC if your company does not have employees or having employees below prescribed limit.
Attached herewith ESIC letter dated 21/11/2022 for ease reference.