04 February 2022
Dear team, Kindly help us with this concern we are facing with ESIC. We registered our company on March 2021 through a paid service portal 1. Its a private limited company with two directors, started as part of media & entertainment for YouTube purpose. 2. ESIC number is allotted when we created the company , which was done by the service portal CA. 3. We have a current account for the registered company , with avg balance maintained.
Currently , we received notice from ESIC to submit the below documents within Feb22,2022. Since, we don't have employers we are not sure what needs to be done further. We have inquired to that service portal & they are still looking into how to provide service and no clear answer from them.
Documents Required by ESIC SRO official: 1. Attendance/Salary Register from March 2021 to January 2022 2. Trial Balance Sheet & Profit&Loss account with schedules/Trial Balance with groupings-with reference to P&LAccount/GeneralLedger/Bills/VouchersforFY2021-22, allsegregatedasperheadsinledger 3. Contractors/outsourced work records. 4. Inspection Book under Regulation 102-A 5. Employees' Register under Regulation 31 6. Accident Book under Regulation 66. 7. All other documents pertaining to employment,payment of wages and payment of contribution under the ESI Act,1948 such as TDS and ECS statements. 8. Registration certificate copy providing the date of commencement 9. Bank Passbook 1st page copy of the company 10. PAN of the company
In ESIC portal handbook, we saw that company with less than 10 employees are not require to follow ESIC schemes.
Kindly help us what should be done from our end, to face this concern.
09 July 2024
It seems there might be some confusion regarding the ESIC notice you received. Here’s how you can approach this situation:
1. **Understanding ESIC Requirements**: - ESIC (Employees' State Insurance Corporation) mandates that companies with 10 or more employees must register for ESIC and comply with its provisions, including contributing to the ESIC fund. - Companies with fewer than 10 employees are generally exempt from ESIC registration and compliance unless they voluntarily choose to register.
2. **Your Company’s Situation**: - Since your company started for YouTube purposes and likely doesn’t have regular employees but possibly contractors or outsourced work, you may not meet the threshold for mandatory ESIC compliance. - If your company has only two directors and no other employees, you may qualify for exemption from ESIC registration.
3. **Steps to Take**: - **Review the Notice**: Carefully review the notice from ESIC to understand if they have acknowledged your company size and status correctly. - **Respond to ESIC**: You may need to respond to ESIC with clarifications about your company structure and provide documents showing that you do not have employees but only directors. - **Seek Professional Advice**: Consider consulting with a local CA or a legal advisor who can help draft a suitable response to ESIC, explaining your company’s situation and requesting clarification on why you received the notice.
4. **Document Submission**: - Compile the documents requested by ESIC, including the registration certificate, PAN copy, and bank passbook first page. - For documents related to employment and wages (like attendance register, salary register, etc.), if applicable, you can provide an explanation that your company does not have employees but directors only.
5. **Communication with Service Portal**: - Continue following up with the service portal through which you registered your company. They should assist you in understanding the notice and possibly liaise with ESIC on your behalf.
6. **Compliance Assurance**: - Even though you may not be required to comply with ESIC regulations currently, it’s important to maintain records and documents related to employment and payments if your company structure changes in the future.
By taking these steps, you can clarify your company’s status with ESIC and ensure compliance with applicable regulations. If in doubt, seeking professional advice will provide you with the necessary guidance tailored to your specific situation.
CAclubindia
