Employees Provident Fund (EPF) is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of the Employees’ Provident Fund Organisation (EPFO) which is one of the world’s largest social security organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is like a benefit to an employee during the retirement provided by the organization.
Applicability of EPF Registration for Employers:-
EPF registration is mandatory for all establishments-
- Which is a factory engaged in any industry having 20 or more persons.
- To any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.
The employer must obtain the registration within one month of attaining the strength, failing which penalties will be applicable. A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.
Central Government may apply the provisions to any establishment employing less than 20 employees after giving not less than two months’ notice for compulsory registration. Where the employer and majority of employees have agreed that the provisions of this act should be made applicable to the establishment, they may themselves apply to the Central Provident Fund (PF) Commissioner.
The Central PF Commissioner may apply the provisions of this Act to that establishment after passing the notification in the Official Gazette from the date of such agreement or from any subsequent date specified in the agreement.
All the employees will be eligible for a PF from the commencement of their employment and the responsibility of deduction & payment of PF lies with the employer. The PF contribution of 12% should be divided equally between the employer and employee. The employer’s contribution is 12% of the basic salary. If the establishment has employed less than 20 employees, the PF deduction rate will be 10%.
Documents Required for EPF Registration Online
- Copy of partnership deed if the company is a registered partnership firm
- A copy of the Certificate of incorporation for a Public or Private Limited Company. This should be issued by the Registrar of Companies
- Societies should furnish a copy of their registration certificate
- Public and Private Limited Companies need to submit a copy of memorandum and Articles of Association
- Societies should furnish a copy of the rules and objects of the society
- All legal documents which might be required under the Income Tax Act
- PAN details of company
- Partition deed
- Proof of incorporation – first sales invoice/ license issued by competent authorities
- Salary details of employees
- Balance sheet details
- PF statement and salary
- Number of employees that have worked for the organisation for the month
- In case the organisation has registered for GST, the certificate must be submitted
- First sale bill
- Cross cancelled Cheque
- Bank details such as name, branch, IFSC code, and address of the bank
- Machinery and raw material purchased for the first time
PF Registration Time Limit
The employer has to obtain the PF registration within 1 month of attaining the strength, in case of failure to abide by applicable penalties. A registered establishment continues under the purview of the Act even in case the No of employees falls below the required limit.