Hi all,
Presently, I am working with a partner firm, and now they are converting it to a Private Limited (Pvt. Ltd.) company. They have entrusted me with all responsibilities related to this transition. I would like to confirm whether it is mandatory for all Pvt. Ltd. companies to comply with PF & ESI regulations or if there is a specific employee count criteria.
Currently, only 7 people are employed in our company.
Thanks in advance.
From India, New Delhi
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1Presently, I am working with a partner firm, and now they are converting it to a Private Limited (Pvt. Ltd.) company. They have entrusted me with all responsibilities related to this transition. I would like to confirm whether it is mandatory for all Pvt. Ltd. companies to comply with PF & ESI regulations or if there is a specific employee count criteria.
Currently, only 7 people are employed in our company.
Thanks in advance.
From India, New Delhi
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Dear Saxena,
If you can manage your company with only 7 employees or a maximum of 9 employees, then you need not comply with PF & ESI. But if you increase the strength beyond that limit, then obviously you must comply with statutory requirements.
Please check whether your area is exempted from ESI coverage. If so, then you need not cover the ESI. You can make alternative arrangements instead of ESI (if declared as an exempted area).
You can directly contact the PF Enforcement Officers of your region who can guide you about PF compliance. If the strength is at a considerable level, then he will advise you regarding the formation of a PF Trust for your company/group of companies.
From India, Kumbakonam
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If you can manage your company with only 7 employees or a maximum of 9 employees, then you need not comply with PF & ESI. But if you increase the strength beyond that limit, then obviously you must comply with statutory requirements.
Please check whether your area is exempted from ESI coverage. If so, then you need not cover the ESI. You can make alternative arrangements instead of ESI (if declared as an exempted area).
You can directly contact the PF Enforcement Officers of your region who can guide you about PF compliance. If the strength is at a considerable level, then he will advise you regarding the formation of a PF Trust for your company/group of companies.
From India, Kumbakonam
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