The Ministry of Corporate Affairs has made significant amendments to the provisions for companies from time to time. With the aim of promoting as well as easing commercial compliance among Indian companies, MCA has introduced a new compact e-form SPICe +. To this effect, all new companies will have to obtain mandatory ESIC registration as well as EPF registration.
What announcement did MCA make on ESIC for new companies?
The Labor Ministry said that the registration of new public, private limited companies and one-person companies under the Employees Provident Fund Organization (EPFO) and Employees State Insurance Corporation (ESIC) will now be done on the corporate ministry website.
What are the SPICe + form?
Before the start of SPICe +,
At the time of joining a company, an applicant had the option to apply for Goods and Services Tax (GST) registration, Employee State Insurance (ESI) registration, and Employee Provident Fund (EPF) registration. However, at the time of the company registration, it was not mandatory for a company to take all the above registrations.
With the introduction of Spice +,
Registration for ESIC and EPF will be mandatory for all new companies to take effect from February 23, 2020, and no separate ESIC and EPF registrations will be issued by the agencies concerned. It is mandatory to apply for GSTIN, registers with EPFO and ESIC, applies for professional tax registration (currently provided for Maharashtra, India), and open a bank account at the time of opening a new company.
The SPICe + form will enable new startup companies to fulfill the following business compliance through a single form: -
Company Name Reservation,
Allotment of DIN,
Compulsory PAN registration
Company bank account opening
Profession tax registration (in the case of Maharashtra)
How will Spice + form ascertain for mandatory registration for ESIC?
With the SPICE + form in effect, ESIC registration will now be mandatory for all new companies to be inducted through SPICE + from 23 February 2020. Thereafter, separate registration of new ESIC will not be done by the concerned agencies.
On the other side:
Can an employer cancel his ESI registration?
No, ESIC registration cannot be canceled. But only its permanent closure can be surrendered. An employer has to apply before the ESIC Commissioner, from where he/she has obtained registration. Apart from this, they also need to keep his/her entire ESIC data ready, as the concerned inspector will conduct an inspection before closing it and after receiving satisfaction that there are no arrears or discrepancies, the branch officer concerned orders its closure.