EPF registration for a Private Limited Company

Introduction

If you're looking to provide the best care and benefits to your employees, registering your company for Employee Provident Fund (EPF) is essential. This article will help you in knowing all the requirements for EPF registration for a Private Limited Company, including eligibility criteria, document requirements, and understanding the significance of EPF for your private limited company.

EPF registration

Registration for the Employee Provident Fund (EPF) is crucial for private limited companies to provide financial security to their employees after retirement. The program is funded by both employees and employers, and the employees have the right to withdraw the funds in their EPF account upon retirement. The account includes contributions and interest from both parties. The program benefits employees in both commercial and public sectors, and the administration is handled by the Employee Provident Fund Organization (EPFO).

Importance of EPF registration

Here are some importance of EPF registration for a Company:

• EPF registration is essential for employers to deduct TDS from employees' salaries and process remittances only after generating challans via the EPFO employer portal.
• Provident Fund account is consistent and transferable to any other workplace, making it a valuable long-term asset for employees.
• Employees can access the accumulated PF amount for immediate financial needs, such as marriage or higher education.
• The primary benefit of the Provident Fund is that it covers the risks that employees and their dependents may face as a result of retirement, illness, or death.
• Employers make an equal contribution of 8.33% to the Employee Pension Scheme, in addition to the employee's 12% EPF contribution.

Documents required for EPF Registration under EPFO  

The following documents that are required for EPF registration under EPFO:

• Proprietor/Partner/Director PAN Card
• Proof of address, such as the Registered Office’s Electricity bill, or Telephone Bill (not older than 2 months).
• Proprietor/Partner/Director Aadhar Card
• Shop and Establishment Certificate/GST Certificate/Any Government License issued for the establishment
• The Proprietor/Partner/Digital Director’s Signature
• Entity’s Cancelled Cheque or Bank Statement
• If applicable, the Hired/Rented/Leased Agreement.
• The Identifier/Licensing Authority issues License Proof

Eligibility Criteria for EPF Registration

To register for the EPF scheme, the following eligibility criteria must be met:

• Companies with 20 or more employees are legally required to deduct EPF from their salaries.
• Under specific conditions, organizations with less than 20 employees can also register themselves under the EPF scheme.

Employers must obtain EPF registration within one month of hiring 20 employees or face a penalty. If a registered organization's employee strength falls below the minimum threshold, it remains within the scope of the Act.

After providing a minimum of two months' notice for compulsory registration, the Central Government may apply the provisions to any establishment employing fewer than 20 people. Employers and the majority of employees can make their own application to the Central Provident Fund (PF) Commissioner if they agree that the provisions of this act should apply to the establishment.

Process for EPF Registration for a Private Limited Company

• Go to the E-Sewa website.
• Carefully read the instructions on how to upload documents.
• Click on the ‘Employer Sign in’ option.
• Select the ‘New Registration’ tab.
• Read all the instructions provided and then click on ‘Register.’
• Fill in all the necessary information.
• Re-check the form before submitting it online.
• Enter the CAPTCHA code displayed on the screen.
• Click on the ‘Get Pin’ option.
• An OTP will be sent to your registered mobile number or email address.
• Enter the OTP and press the ‘Submit’ button.
• Save the PDF for later submission to the EPF office.

Bottom line

The Employee Provident Fund scheme provides a great source of financial support, safety, and assurance for employees, and it is governed by the EPFO, one of India’s largest social security organizations. The EPFO handles a large volume of financial transactions daily. Applying for the Provident Fund is a simple process, especially if you seek the assistance of a professional.