At what employee count does ESI registration become mandatory?

Section 1(3)(a) of ESI Act 1948 makes registration mandatory for non-seasonal power-using factories with ≥10 workers; non-power factories require ≥20 workers. For shops / commercial establishments (Section 2A), the threshold is 10 employees (20 in Maharashtra) — subject to the State Government's Notification extending the Act to that class.

What is the wage ceiling for ESI coverage?

₹21,000 per month (₹25,000 for persons with disabilities), effective 1 January 2017. Employees drawing more than ₹21,000/month at the time of joining are excluded from ESI; existing members whose wages cross ₹21,000 mid-employment continue to be covered until the end of the contribution period.

What is the contribution rate?

Employer 3.25% of wages + Employee 0.75% = Total 4% of wages, effective 1 July 2019 per ESIC Notification. If the daily wage is ≤ ₹137, the employee's 0.75% share is waived, but the employer's 3.25% is still payable.

What is the government fee for ESI registration?

There is no government fee. Registration on the ESIC Employer Portal is free. The recurring cost is the monthly contribution (4% of wages).

What are the half-yearly return due dates?

Form 5 (Employer's Return of Contributions) for April-September half-year is due **12 November**; for October-March half-year due **12 May**. Both are filed online on the ESIC Employer Portal.

What happens if the establishment doesn't pay ESI contribution on time?

Section 68 damages — slab from up to 5% (delay ≤2 months) to up to 25% (delay >6 months). Regulation 31-A interest at 12% per annum simple interest. Section 85 punishment — first offence: imprisonment up to 1 year + fine up to ₹4,000; subsequent offence: imprisonment up to 2 years.

Is ESI registration irrevocable?

Yes — once an establishment is registered (whether mandatory or voluntary under Section 1(4)), coverage continues even if the employee count later drops below the threshold. The establishment can apply for closure of code only on permanent closure of business.

Can an employee covered under ESI claim benefits after resignation?

Medical benefits continue for 3 months from the date of exit (subject to contribution conditions). Sickness / maternity / disablement benefits are linked to the contribution period — typically require 78 days of contribution in the relevant contribution period for sickness benefit.

Editor's pickStartup · Business Registration

PF & ESI Registration Services

Register establishment on ESIC Employer Portal. Free, mandatory at 10+ employees (20 in Maharashtra). 4% contribution (3.25%+0.75%). Half-yearly Form 5 returns.

Statutory basis: Composite / bundle service combining:.

Turnaround

7–14 Days

₹

Starts from

₹1,799

Money-back accuracy

Guaranteed

Total starting from

₹1,799

Professional fee (no government fee)

Professional fee₹1,799 starts with

Government fee (est.)No fee

Turnaround7–14 Days

Money-back accuracy. CA/CS specialist. Tracked client portal.

CONFIRMEDverified 25 Aug 2026

Dedicated specialist

CA-led, named point of contact

Tracked client portal

Real-time status, end-to-end

Money-back accuracy

Refile-free if our error

Flat-fee pricing

No hidden charges, ever

About this service

PF & ESI Registration Services is a key regulatory filing administered by Composite — EPFO (for EPF) and ESIC (for ESI), under the Ministry of Labour & Employment. Both registrations are now available as a single opt-in through MCA's SPICe+ AGILE-PRO-S at incorporation, or separately through the EPFO Unified Portal 2.0 and the ESIC Employer Portal respectively.. Filing is executed via - For EPF: Form-5A (return of ownership), Form-11 (member nomination), ECR (monthly return), online EPF Registration Application (replaces Form-1). under Composite / bundle service combining:. Our specialist-led team ensures full compliance with statutory documentation, eligibility verification, and expedited government approval.

Eligibility & thresholds

Minimum

Valid identity & address proof of applicant
Active PAN & registered business premises
Authorized representative authorization

Maximum

Compliant under applicable regulatory laws
No pending statutory disqualifications
Valid across authorized operational jurisdictions

Statutory floor

Pre-filing statutory documentation verification
Official statutory fee schedule as per authority
Mandatory periodic compliance filings post-approval

What's included

Everything in one transparent fee — no add-ons, no surprises.

Government Fee Breakdown

Government charges only — separate from I-Pro's professional fee. All figures verified as of 25 August 2026.

Fee Component	Amount (₹)	Basis / Authority
PF & ESI Registration Services Statutory Filing	₹0 (No government fee)	Government fee is Nil / exempted under applicable statutory rulesOfficial Regulator
Total Government Fee	No fee	(for default assumptions stated below)

Government charges only — separate from I-Pro's professional fee. Verified 25 August 2026.

Required documents

Each list identifies exactly what to provide — and what you do not need to submit. Use the accordions to expand.

›**PAN** of the establishment — Identity and statutory verification
›**Certificate of Incorporation / Registration** (COI for company; Partnership Deed; LLP Certificate; Shops & Establishment Certificate; Factory Licence, as applicable) — Identity and statutory verification
›**Address proof** of registered office — latest electricity bill / telephone bill / property tax receipt (≤2 months old); rent agreement + NOC if rented — Identity and statutory verification
›**Bank account details** — bank account number + IFSC + MICR code; cancelled cheque — Identity and statutory verification
›**List of employees** — name, father's/husband's name, DOB, gender, date of joining, designation, monthly wages, Aadhaar, PAN, bank account, family details (for insurance coverage) — Identity and statutory verification
›**DSC** of authorised signatory (Class-2 / Class-3) — alternative to Aadhaar e-Sign — Identity and statutory verification
›**Specimen signature** of authorised signatory — Identity and statutory verification
›**GST Registration Certificate** (if registered) — Identity and statutory verification

How it works

Each step is labelled with who performs it — Customer, I-Pro, or the Regulator. Form names are linked to the official portal.

1
Customer⏱ 1-2 Days
Confirm whether establishment crosses the 10-emp...
Confirm whether establishment crosses the 10-employee threshold (or 20-employee in Maharashtra); confirm factory licence / Shops & Establishment Certificate is in place.
2
I-Pro⏱ 1-2 Days
Open https://www.esic.gov.in → "Sign Up" → "Empl...
Open https://www.esic.gov.in → "Sign Up" → "Employer" → create user ID with establishment email + mobile.
3
I-Pro⏱ 1-2 Days
Receive OTP on registered mobile; complete emplo...
Receive OTP on registered mobile; complete employer sign-up.
4
I-Pro⏱ 1-2 Days
Login to ESIC Employer Portal → "File New Regist...
Login to ESIC Employer Portal → "File New Registration Application" → select establishment type (Factory / Establishment under Section 2A) and applicable State.
5
I-Pro⏱ 1-2 Days
Enter establishment details — name, PAN, COI/CIN...
Enter establishment details — name, PAN, COI/CIN/LLPIN, factory licence number (if applicable), address (factory / establishment), NIC-2008 code, date of commencement of business, date of crossing threshold.
6
I-Pro⏱ 1-2 Days
Enter bank account details — IFSC, account numbe...
Enter bank account details — IFSC, account number (auto-verified with bank); enter contact person details.
7
I-Pro⏱ 1-2 Days
Upload documents — COI, PAN, address proof, canc...
Upload documents — COI, PAN, address proof, cancelled cheque, Factory Licence (if applicable).
8
I-Pro⏱ 1-2 Days
Enter employee details — schedule of first emplo...
Enter employee details — schedule of first employees (name, Aadhaar, bank account, DOB, joining date, monthly wages).
9
Customer⏱ 1-2 Days
Affix Aadhaar e-Sign of authorised signatory OR ...
Affix Aadhaar e-Sign of authorised signatory OR DSC.
10
I-Pro⏱ 1-2 Days
System scrutinises — typically allots 17-digit E...
System scrutinises — typically allots 17-digit ESI Code Number within 1–2 working days; PDF Registration Certificate auto-emailed. ESIC also issues Insurance Number (Pehchan) for each employee on first ECR-equivalent filing.
11
I-Pro⏱ 1-2 Days
Brief customer on monthly ECR-equivalent filing,...
Brief customer on monthly ECR-equivalent filing, contribution remittance, and half-yearly Form 5 returns.

Post-registration compliance

What to file next. I-Pro handles these as part of the annual compliance package.

Filing	Form	Deadline
Commencement of Business (Form INC-20A) Penalty: ₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)	`One-time mandatory`	Within 180 days of incorporation after bank capital deposit
First Auditor Appointment (Form ADT-1) Penalty: Statutory non-compliance; prosecution of defaulting officers	`5-year tenure`	Within 30 days of incorporation by Board of Directors
Annual Financial Statements (Form AOC-4) Penalty: ₹100 per day of delay per form with no statutory ceiling	`Annual`	Within 30 days of AGM (by 29 October annually)
Annual Return (Form MGT-7) Penalty: ₹100 per day of delay per form with no statutory ceiling	`Annual`	Within 60 days of AGM (by 29 November annually)
Director KYC Verification (DIR-3 KYC) Penalty: ₹5,000 statutory fee per DIN + deactivation	`Annual`	Every designated partner / director holding active DIN by 30 September

Penalties for non-compliance

Statutory penalties under governing regulatory provisions. Avoid non-compliance delays.

Non-compliance	Provision	Penalty
Commencement of Business (Form INC-20A)	One-time mandatory	₹50,000 for company + ₹1,000/day for directors (max ₹1 Lakh)
First Auditor Appointment (Form ADT-1)	5-year tenure	Statutory non-compliance; prosecution of defaulting officers
Annual Financial Statements (Form AOC-4)	Annual	₹100 per day of delay per form with no statutory ceiling
Annual Return (Form MGT-7)	Annual	₹100 per day of delay per form with no statutory ceiling
Director KYC Verification (DIR-3 KYC)	Annual	₹5,000 statutory fee per DIN + deactivation

Common mistakes to avoid

Avoidable filing errors that cause delays or rejection. Each can be resolved before submission.

1
Mismatched applicant legal name or identity details across KYC proofs
Why: Government verification APIs cross-check with UIDAI and MCA databases and automatically flag discrepancies in spelling or dates.
Fix: Our specialists pre-validate your documents against official government databases before portal filing.
2
Submitting outdated utility bills or non-notarized commercial leases
Why: Premises proofs older than 60 days or defective landlord NOCs trigger statutory scrutiny queries and multi-week processing delays.
Fix: We verify recent billing dates and provide pre-formatted, legally vetted landlord NOC and lease formats.
3
Selecting incorrect classification, turnover slab, or statutory activity code
Why: Applications filed under inappropriate classifications attract show-cause notices and potential rejection without statutory fee refund.
Fix: We conduct a statutory scope assessment to align your application with the exact regulatory requirements.

Frequently asked questions

Everything you need to know about this service.

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