The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment and the beneficiaries' monthly wage does not exceed Rs 21,000 are covered under the scheme

What are the benefits of ESIC registration?

The benefits of registering under this scheme are varied. Some of them are:

• Sickness benefits at the rate of 70% (in the form of salary), in case of any certified illness certified and which lasts for a maximum of 91 days in any year
• Medical Benefits to an employee and his family members
• Maternity Benefit to the women who are pregnant (paid leaves)
• If the death of the employee happens while on work – 90% of the salary is given to his dependents every month after the death of the employee
• Same as above in case of disability of the employee
• Funeral expenses
• Old age care medical expenses

What are the documents required for ESIC Registration

The documents required for the registration are –

• A registration certificate obtained either under the
  • Factories Act
  • Shops and Establishment Act
• Certificate of Registration in case of Company, and Partnership deed in case of a Partnership
• Memorandum of Association and Articles of Association of the Company
• A list of all the employees working in the Establishment
• PAN Card of the Business Entity as well as all the Employees working under the entity
• The compensation details of all the employees
• A cancelled cheque of the Bank Account of the Company
• List of Directors of the Company
• List of the Shareholders of the Company
• Register containing the attendance of the employees

After collecting all the above-mentioned documents the following procedure is to be followed for the registration of the ESI:

• Form No – 1 (Employers Registration Form) is to be downloaded and filled.
• b. After downloading the PDF version of the form and filling it, it has to be submitted on the website itself along with the above-mentioned documents.

PROVIDENT FUND REGISTRATION

Applicability of EPF Registration for Employers

EPF registration is mandatory for all establishments which is a factory engaged in any industry having 20 or more persons, and to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify on this behalf.

The employer must obtain the registration within 1 month of attaining the strength, failing which penalties will be applicable .A registered establishment continues to be under the purview of the Act even if the employee strength falls below the required minimum.

Steps for EPF Registration for Employers

The employee needs to follow the below-mentioned steps:

Step 1- Register the organization with EPFO

Visit the website and register the organization with EPFO. In the home page of the Unified portal, there is an option called “ESTABLISHMENT REGISTRATION”.

Step 2: Read the User Manual

Click on the “ESTABLISHMENT REGISTRATION” and you will be taken to the next page where you will get an “INSTRUCTION MANUAL”. A new user must download and read the instruction manual completely before the registration.

Step 3: Register DSC

The employers who are already registered can login with their credentials i.e. with the Universal Account Number [UAN] and password. This instruction manual will explain the process of Employer Registration which is to be followed by registration of DSC [Digital Signature Certificate] of the Employer. Getting DSC registered is a prerequisite to submitting a fresh application for ERF registration.

Step 4: Fill the Employer’s Details

Tick on “ I have read the instruction manual” completely. Click on “REGISTER BUTTON” given below. This will take you to the new page where all the employer’s details need to be filled in. The fields marked with the red star (asterisk) are mandatory to be filled in.

Step 5: Fill the details correctly

What are Micro, Small and Medium Enterprise?

Now, under the Aatmanirbhar Bharat Abhiyan (ABA), the government revised the MSME classification* by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufacturing and the services sectors under the MSME definition has been removed. This removal will create parity between the sectors. The following is the revised MSME classification*, where the investment and annual turnover, both are to be considered for deciding an MSME.:

Revised MSME Classification
Criteria	Micro	Small	Medium*
Investment & Annual Turnover	< Rs.1 crore & < Rs.5 crore	< Rs.10 crore & < Rs.50 crore	< Rs.50 crore & < Rs.250 crore

Registration Process

• To do the registration the small and medium scale industry owner has to fill a single form which he can do online as well as offline.
• If a person wants to do registration for more than one industry then also he/she can do individual registration.
• To do the registration he/she has to fill a single form which is available at the website which is listed below.
• The document required for the registration is Personal Aadhar number, Industry name, Address, bank account details and some common information.
• In this, the person can provide self-certified certificates.
• There are no registration fees required for this process.
• Once the detail-filled and upload you would be getting the registration number.

Benefits of MSME Registration

• Due to the MSME registration, the bank loans become cheaper as the interest rate is very low around ~ 1 to 1.5%. Much lower than interest on regular loans.
• There are various tax rebates offered to MSME.
• It also allowed credit for minimum alternate tax (MAT) to be carried forward for up to 15 years instead of 10 years
• There are many government tenders which are only open to the MSME Industries.
• They get easy access to credit.
• Once registered the cost getting a patent done, or the cost of setting up the industry reduces as many rebates and concessions are available.
• Business registered under MSME are given higher preference for government license and certification.
• There is a One Time Settlement Fee for non-paid amounts of MSME.

Documents Required for MSME Registration

The entity has to submit documents like business address proof, copies of purchase and sale bill, and licenses from regulatory bodies.

• Business Address Proof
• Copies of Sale Bill and Purchase Bill
• Partnership Deed/ MoA and AoA
• Copy of Licenses and Bills of Machinery Purchased

How to Register a Start-up in India – Eligibility and Procedure

Ever since the Prime Minister of the country, Narendra Modi, launched the Start-up India program, there has been an incredible surge in the number of start-ups coming up.

With tax exemptions, benefits and help provided by the government, more and more people are creating a company of their own. The most fascinating thing is that a majority of the start-ups have young founders and owners, which speaks volumes about the incredible creative minds that India has.

The start-up eligibility criteria

What makes you a start-up under the Start-up India program?

• The firm has to be a private limited company or a limited liability partnership
• The company remains a start up for the first ten years, post the date of registration. In the recent past, the Indian government changed that to 10 years from 7 years to give opportunities and tax exemptions for the companies for a longer run
• The company remains a start-up if the turnover per year does not cross the Rs 100 crore mark in any of the 10 years. Once the company crosses the mark, it no longer remains eligible to be called a start-up. The mark of Rs 100 crore too has been improved by the Indian government in the recent past from Rs 25 crore
• The firm should have approval from the Department of Industrial Policy and Promotion (DIPP)
• The firm should be funded by an Incubation Fund, an Angel Fund or a Private Equity Fund
• A patron guarantee from the Indian Patent and Trademark office is necessary
• You must have a recommendation letter by an incubation
• The firm must come up with innovative ideas and schemes
• All the details regarding the funding must be registered with SEBI (Securities and Exchange Board of India)

Procedure for registering a start-up in India

Step 1: Incorporate your business

First things first, you need to incorporate your business as a Private Limited Company or a Limited Liability Partnership or a Partnership firm. You just need to follow the normal procedure that

includes you filling up a form to get the registration.

Step 2: Register under Start-up India

Now you need to register your firm or company as a start up in the Start-up India scheme of the government. You just need to fill the form available for you on the Start-up India website. You have to fill in all the details and upload a certain number of documents as well.

Step 3: Documents you need to upload in a PDF format only

• You need a letter of recommendation along with the registration form. You can get any one of the following recommendation letters.
  • A recommendation letter from an Incubator known in a post-graduate college in India, in a format approved by the DIPP. This is regarding the innovative nature of the business; OR
  • A recommendation letter from an incubator that the Government of India funds as part of any specified scheme to promote innovation; OR
  • A letter from any of the Incubators, recognized by the Government of India, in DIPP format.
  • A letter of funding not less than 20% in equity, by an Incubation Fund, Private Equity Fund, Angel Fund, Accelerator, Private Equity Fund, registered with SEBI that endorses the innovative nature of business; OR
  • A recommendation later by the Central or any State Government of India; OR
  • A patent filed and published in the Journal of Indian Patent office in areas affiliated with the nature of the business being promoted.

1. Registration or Incorporation Certificate

You need to upload the certificate of incorporation of your company or LLP, or the registration certificate for a partnership company.

1. Brief description of your business

Step 4: You need to mention if you need tax exemption

In India, start-ups do not have to pay income tax for the first three years but to avail such benefits, the company must be certified by the Inter-Ministerial Board (IMB). This is where companies registered with DIPP get relaxation as the registration is enough to get the benefits.

Step 5: Self-certification of the following conditions

• You are a Private limited company, an LLP or a partnership firm.
• Your business must be incorporated or registered in India, not before 5 years.
• Your company’s turnover must not be more than Rs 100 crore.
• The company has to keep innovating something new or making the existing system better in its own way.
• Your business must be a fresh idea and not a splitting up or reconstruction of an existing business.

Step 6: Get your recognition number

On application of this registration, you will get a recognition number with immediate effect. You get the certificate of registration or incorporation only after the authority goes through all your uploaded documents.

You need to be careful while uploading the data, as any discrepancy in it can cause you a huge fine of up to 50% of your paid-up capital or Rs 25,000 at the very least.

Now that you know the eligibility and registration criteria for a start-up, enrol your company as well into the Start-up India scheme and reap all the benefits provided by the government.