Dormant status of ESIC

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A newly formed company, established in October 2023, is currently dormant with no operations and no employees. The user is seeking clarification on whether they need to update their dormant status with ESIC and if there are penalties for not doing so. The general consensus is that if there are no employees, ESIC registration is not required. However, it's advised to confirm if a 'NIL Declaration' is necessary even without employee contributions to avoid potential penalties for non-filing or late filing.

Kinjal Thakkar

Kinjal Thakkar (Querist)

05 January 2024 We have a new company formed in October 2023. The operations of the company has not started and the company is dormant as of now. We have not created any registration on ESIC portal as there are no employees recruited. Do we have to update the dormant status as there is penalty for not doing the same? How do we do that?

RAJA P M

RAJA P M (Expert)

05 January 2024 No need if no employees as per ESI requirements.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

14 January 2024 I hope even if there is are no employee contribution , the Employer needs to submit a NIL Declaration to ESIC Department. Non-Filing or Late Filing of Return may attract legal consequences and penalty. Under ESIC a half-yearly Return need to file for the period of every six months.

RAJA P M

RAJA P M (Expert)

14 January 2024 Mr Asha kanta Sharma,
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