Company on MCA portal. ESIC Exemption/Extension for new Public & Private Limited Companies and One Person.
As we all know, with effect from 08.10.2020, new Public & Private Limited Companies and One Person Company shall get registration number for EPFO & ESIC on MCA portal (www.mca.qov.in through Spice+ and AGILE-PRO e-forms) only at the time of incorporation.
However, such new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts.
Employee State Insurance Corporation had released a Circular in this regard dated December 22, 2022, which states that Companies who have got default registration under ESI Act on incorporation through MCA portal need not comply with the provisions of ESI Act for a period of six months from the date of incorporation.
Here comes the most important task for the employer who do not reach 10 employee count within the first 6 months to avoid any unnecessary notices and inspections from ESIC departments.
Solution: Within the first 6 months from the date of incorporation; if the company do not reach the threshold limit of 10 employee count; the employer need to login at ESIC portal using the default login credentials received from ESIC department via email and update the status of the total employee count as on date. This process avoids any unnecessary notices and inspections from ESIC departments. The same process needs to be repeated after every 6 months, if not reaches 10 employee strength.
However, once you have reached 10 employees’ strength, you need to adhere with the monthly return as per the act.
Note: You must have the default login details with you for taking this extension.
