Online registration of units through MCA portal for ESI registration and inspection of units

Corporate Laws

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10th January,2023
Newly incorporated Public Limited, Private Limited and One Person Companies registered with effect from February 15, 2020 ['Companies'] are being allotted ESIC registration number by default at the time of its incorporation. Once these Companies are registered under Employee State Insurance Act, 1948 ['ESI Act'] they will have to comply with the provisions of ESI Act mandatorily as their registration becomes active automatically on generation from the date of incorporation, irrespective of whether these Companies fall under the ambit of the thresholds limits as applicable[1]. However, it raised a new challenge before the Employee State Insurance Corporation to identify whether these Companies fall under the thresholds or not? To meet the above issue, Employee State Insurance Corporation had released a Circular in this regard dated December 22, 2022 which states that Companies who have got default registration under ESI Act on incorporation through MCA portal need not comply with the provisions of ESI Act for a period of six months from the date of registration or until it exceeds the thresholds as specified under ESI Act, whichever is earlier.

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