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ESI Registration

  • Mandatory social security compliance for eligible employers
  • Provides medical, sickness, maternity, and disability benefits to employees
  • Covers dependents of insured employees
  • Enhances employer credibility and workforce trust
  • Avoids heavy penalties, interest, and prosecution
  • Enhances employer credibility during labour inspections and statutory audits.
  • Covers both employees and their dependents under a statutory social security framework.
  • Protects employers from penalties, interest, and prosecution for non-compliance.

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7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

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10 +

Awards Gained

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144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

Introduction

ESI Registration refers to registration under the Employees’ State Insurance Act, 1948, which mandates eligible establishments to provide social security and health insurance benefits to their employees through the Employees’ State Insurance Corporation (ESIC). The scheme is designed to protect employees against sickness, maternity, employment injury, disability, and death due to employment-related causes.
Any establishment employing 10 or more employees (threshold may vary for certain states) and paying wages up to the prescribed limit is required to obtain ESI Registration. Once registered, the employer must make monthly ESI contributions for eligible employees. The scheme also extends benefits to the dependents of insured employees.
ESI Registration is compulsory once applicable and continues even if employee strength falls below the threshold at a later stage. Non-compliance can result in interest, damages, recovery proceedings, and criminal prosecution.

Legal Framework / Governing Authority

ESI Registration is governed by the Employees’ State Insurance Act, 1948 and administered by the Employees’ State Insurance Corporation (ESIC) under the Ministry of Labour and Employment, Government of India.

Importance of the Registration

ESI Registration ensures statutory health and social security coverage for employees and their families. It is a key labour compliance checked during inspections, audits, funding, and corporate due diligence.

Businesses Require This Registration

  • Factories and manufacturing units
  • Private limited companies and LLPs
  • Shops and commercial establishments
  • IT, service, and outsourcing companies
  • Educational institutions, hospitals, and contractors

Objective of Compliance

The objective is to provide comprehensive social security to employees, ensure access to medical care and cash benefits, and promote employer accountability for workforce welfare.

Documents Required

Documents
  • 1 PAN of proprietor
  • 2 Aadhaar of proprietor
  • 3 Address proof of business
  • 4 Bank account details
  • 5 Employee details (wages and joining date)
  • 1 PAN of partnership firm
  • 2 Partnership Deed
  • 3 Aadhaar of authorized partner
  • 4 Address proof of business
  • 5 Bank account details
  • 1 Certificate of Incorporation
  • 2 PAN of company/LLP
  • 3 MOA & AOA / LLP Agreement
  • 4 Aadhaar of directors/partners
  • 5 Address proof of registered office
  • 6 Bank account details

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Eligibility

Applicability

Applicable to establishments employing 10 or more employees
Applicable where employee wages are within prescribed limits
Applicable to factories and notified establishments
Applicable on a continuous basis once triggered

Eligibility

Employer must employ the prescribed number of employees
Business must be legally registered in India
Employer must have PAN and bank account
Employees must draw wages within ESI limits

Validity

ESI Registration is valid for a lifetime
No renewal is required once registered
Monthly contribution and filings are mandatory
Registration continues even if employee count reduces

Non-Compliance

Non-Compliance

Interest on delayed ESI contributions
Monetary penalties and damages
Recovery proceedings by ESIC
Prosecution and imprisonment in severe cases

FAQs

Is ESI Registration mandatory for all employers?

ESI Registration is mandatory for establishments employing the prescribed number of employees and meeting wage criteria.

What is the wage limit for ESI applicability?
What is the contribution rate under ESI?
Is ESI applicable to contractual or temporary employees?
What happens if ESI registration is not taken on time?
Who is required to obtain ESI Registration?
Is ESI Registration mandatory for service-based businesses?
Which authority administers ESI Registration?
Does ESI Registration require renewal?
What happens if ESI contributions are not deposited on time?

Why Partner With ARK?

A seamless blend of technology and Chartered Accountant expertise to simplify your business registration.

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What Our Clients Say

Discover what our satisfied clients have to say about their experience working with us

Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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