Provident Fund Registration
A provident fund is created with the purpose of providing financial security and stability to elderly people. Generally, one contributes in these funds when one starts as an employee, the contributions are made on a regular basis (monthly in most cases). Its purpose is to help employees save a fraction of their salary every month, to be used in an event that the employee is temporarily or no longer fit to work or at retirement. The investments made by a number of people / employees are pooled together and invested by a trust.
Employee Provident Fund (EPF) is implemented by the Employees Provident Fund Organization (EPFO) of India. An establishment with 20 or more workers working in any one of the 180+ industries should register with EPFO. Typically 12% of the Basic, DA, and cash value of food allowances have to be contributed to the EPF account. EPFO is a statutory body of the Indian Government under Labour and Employment Ministry. It is one of the largest social security organizations in the world in terms of members and volume of financial transactions undertaken.
Schemes under the Law
Presently, the following three schemes are in operation under the Acts
- Employees’ Provident Fund Scheme, (EPS)1952
- Employees’ Deposit Linked Insurance Scheme,(EDILS) 1976
- Employees’ Pension Scheme, 1995 (replacing the Employees’ Family Pension Scheme, 1971)
Rates of Contribution
Table below gives the rates of contribution of EPF, EPS, EDLI, Admin charges in India.
|Scheme Name||Employee contribution||Employer contribution|
|Employee provident fund||12%||3.67%|
|Employees’ Pension scheme||0||8.33%|
|Employees Deposit linked insurance||0||0.5%|
|EPF Administrative charges||0||1.1%|
|EDLIS Administrative charges||0||0.01%|
EPF Checklist Documents
- A copy of memorandum and Articles of Association and the certificate of incorporation issued by the Registrar of Companies, in the case of Public and Private Ltd. Companies.
- A copy of partnership deed in the case of partnerships.
- A copy of registration certificate issued by the Registrar of Co-operative societies.
- A copy of registration certificate issued by Registrar in the case of societies registered under Societies Registration Act along with a copy of the objects and Rules of the society.
- Partition deeds creating HUF.
- Any agreement or other legal documents in the case of Association of person as defined in the Income Tax Act.
A list of documents which can be submitted as a proof of date of set up
(Any one of these documents has to be submitted)
- First Sales Invoice.
- Any proof regarding date of trial production.
- Incorporation Certificate issued by the Registrar of Companies together with the report of the Managing Director to the Shareholder in the Annual Report.
- Commencement of Business Certificate issued by the Registrar of Companies.
- Certificate of Registration issued by the Registrar of Co-operative Societies.
- Certificate of Registration issued under Societies Registration Act.
- Certificate issued by Reserve Bank of India registering newly set up and non-banking financial companies.
- License issued by the Health Authorities.
- License/permission issued by the Municipal/Corporation Authorities.
- Permission/approval granted by the appropriate Sate Govt. Authorities in the case of Educational Institutions.
- Certificate issued by the Fire Authorities in the case of establishments coming under Explosives Act.
- First assessment order issued by the Sales Tax Authorities.
- First assessment order issued by the income Tax Authorities.
- Certificate issued by the Small Scale Industries authorities registering the establishment
- Reports/returns to Central Excise authorities.
- Sanction/connection of power like H.T. connection, L.T. connection etc.
- Any other Certificate issued by any authority under any law for the time being in force prior to the commencement of business activity/manufacturing activity.
The above list is not exhaustive and is only illustrative. Any one or more of the above documents may be submitted along with your application for allotment of a Code Number.