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PROVIDENT FUND REGISTRATION

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WHAT IS PROVIDENT FUND/ EPF

Every establishment which employs 20 or more employees is under obligation to obtain PF registration. The capacity of 20 includes contract employees also The Employees'' Provident Funds & Miscellaneous Provisions Act, 1952 has been enacted with the main objective of protecting the interest of the employees after their retirement and their dependents after death of the employee. The Act provides insurance to workers and their dependents against risks of old age, retirement, discharge, retrenchment or death.
A provident fund is created with a purpose of providing financial security and stability to its member. Its purpose is to help employees save a fraction of their salary every month, to be used in an event that the employee is temporarily or no longer fit to work or at retirement. Employees Provident Fund (EPF) is a scheme controlled by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

WHO ARE COVERED UNDER PF ACT?

PF registration is mandatory for all establishments with 20 or more persons. Some establishments having less than 20 employees would also be required to obtain PF registration.
Every establishment which employs 20 or more employees is under obligation to obtain PF registration. The capacity of 20 includes contract employees also. It is compulsory for all employees whose Basic Salary + DA is less than 15,000 per month. Few companies are exempted as per section 1 of Employees’ Provident Fund and Miscellaneous Provisions Act 1952.
Employee and Employer share for this contribution is 12 percent individually.The contribution of 12 percent of employer side is divided into two portions that is EPF and EPS. In which the EPS (8.33 percent)provided for Pension fund and balance will go to EPF.
PF registration can also be obtained voluntarily by establishments having less than 20 employees.Co-operative societies need to register when their employee strength increases to 50 or more.Once coverage starts, then it continues even if the number of employees reduces from the statutory threshold limit of twenty.
Registration has to be done within one month from the date of hiring 20 employees. Any delay may result in a penalty.

WHAT ARE THE BENEFITS OF PF.?

  • Interest earned on accumulated Provident fund amount is Exempt from Income Tax. However, any withdrawals made before a period of 5 years is taxable.
  • Insurance benefit of up to 6 lakhs is passed on to surviving members of a deceased member.
  • If contribution is made continuously for a period of 10 years, then the individual is guaranteed life-long pension.
  • Every PF account holder is provided with a UAN (Unified Account Number) which when linked with Aadhaar facilitates the switching of accounts when changing organizations.

DOCUMENTS REQUIRED FOR EPF REGISTRATION.

For Company/LLP/Firm

You can choose to register either offline or online, with the online option being preferred mode for registration at present.

  • Name of the Establishment.
  • Date of setup of the organisation -Incorporation Certificate/ Date of Partnership Deed
  • Scanned copy of the company’s/LLP/Firms PAN (Proprietor’s, in case of proprietorship concern).
  • Scanned copy of cheque of bank account.
  • Address of the company with address proof.
  • List of Directors / Partners.
  • Address proof of Proprietor / Director / Partner of the company.
  • DSC of signing authority, Email address, Mobile number of Proprietor / Director / Partner of the company.
  • Copy of First sale bill / Job work bill and First purchase bill.
  • The monthly strength of employees from the date of setup.
  • Current list of employees with their details:
  • Activity/class of Industry
  • Scanned copy of the licenses available in the name of the company. (like GST).
  • Any other Registration copy ( Shop and Establishment, ESI, SSI, Service tax and Tin etc...)

Other Important Information

PF Return

  • PF return must be filed by all entities having PF registration every month. PF return is due on the 25th of every month.

PF Payment

  • PF deposits/payments are due on the 15th of each month.
  • Further, a final PF return is due on the 25th of April for the year ended on 31st March.

PF Withdrawal

  • Employees who have contributed to PF can withdraw money in their PF account for various reasons by applying on the Unified Portal. PF can be withdrawn for house purchase, medical reasons, marriage or education of family members.