PF Registration with company registration

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CA Chandan Samdani (Querist)
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27 February 2024 I have applied for company registration but PF establishment number i.e PF registration also generated with the company registration. Is PF registration mandatory for every Private limited company? PF registration are automatically granted with company registration?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 July 2024 In India, PF registration (Employees' Provident Fund Organization or EPFO registration) is mandatory for private limited companies that employ 20 or more employees. Here are some key points regarding PF registration for private limited companies:

1. **Mandatory Requirement**: Private limited companies employing 20 or more employees are required to register with the EPFO and contribute to the Provident Fund (PF) for their employees.

2. **Automatic Grant**: When you register a private limited company with the Ministry of Corporate Affairs (MCA), you may also receive a PF establishment code along with it. This is because the EPFO registration process is often integrated or linked with the company registration process.

3. **Linking EPFO and MCA**: The EPFO may generate a PF establishment code based on the details provided during the company registration process. This helps streamline the compliance process for employers, ensuring that they are registered with EPFO from the outset.

4. **Compliance**: Once you receive your PF establishment code, you are required to:
- Deduct PF contributions from employees' salaries.
- Make matching contributions to the EPF.
- File monthly PF returns (Form 12A), annual returns (Form 6A), and other required documents.

5. **Employee Benefits**: PF registration ensures that your employees receive retirement benefits and financial security through regular contributions to their EPF accounts.

**Penalties for Non-Compliance**: Failure to register with EPFO or comply with PF regulations can lead to penalties and legal consequences.

Therefore, while PF registration is not automatically granted with every company registration, it is a mandatory requirement for private limited companies meeting the employee threshold. It's crucial to ensure timely registration and compliance to avoid penalties and ensure employee welfare. If you have any specific concerns or need assistance with PF registration, consulting with a professional or legal advisor familiar with labor laws in India would be advisable.