PROVIDENT FUND (PF) REGISTRATION
Starting @ Rs 4999 All Inclusive No Hidden Charge
Provident Fund is a scheme launched by the government of India for providing financial support to the employees after their retirement. Get PF registration online in 3 days.
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BASIC
- EPF REGISTRATION FOR BUSINESSES HAVING LESS THAN 25 EMPLOYEES
POPULAR
- EPF REGISTRATION FOR BUSINESSES HAVING LESS THAN 40 EMPLOYEES
PREMIUM
- EPF REGISTRATION FOR BUSINESSES HAVING LESS THAN 60 EMPLOYEES
What Is PF Registration?
Provident fund is a scheme for the welfare of the employees at the time of their retirement. Under this scheme, the employees get the monetary benefit at the time of their retirement. It is regulated under Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 by Employees’ Provident Fund Organization (EPFO). This organization is the world’s largest social security organization whose main objective is to protect the old age employees and provide them with financial support. The organization can be a sole proprietorship or partnership firm or a Private Limited Company or LLP or any other type of business enterprise.
Any organization that has more than 20 employees shall have to register itself with the provident fund organization mandatorily. The employer needs to file the registration application to the government for its registration with Digital Signature (DSC). The organization has to apply for registration within a month from the day it reaches the limit of 20 employees. If any organization has less than 20 employees it can also take the registration for providing provident fund benefits to its employees. Employees include regular employee, part-time employees, contract-based employees, like a housekeeper, security guard, and contract labour as per the requirement. Both the employee and employer needs to contribute toward the provident fund, and the employee can contribute 12% of his salary or wages, and the employer shall have to contribute 12% of the salary in which 8.33% to the pension scheme and remaining 3.67% toward the provident fund. Here the salary includes the basic salary of the employee along with the dearness allowances and retaining allowances.
After the amendment in the companies act, 2013 now the PF registration and GST registration can also be applied at the time of company registration in the subsequent form provided along with the company registration form.
Eligibility Of PF Registration
Provident fund is governed under Employees Provident Funds and Miscellaneous Provisions Act, 1952, this act applicable all over India except Jammu & Kashmir.
Eligibility of PF registration is as follows:
- Establishment under industry sector having employee 20 or more
- Other establishments having employees 20 or more during the previous year
- For the employees drawing less than Rs. 15000
It is mandatory for those establishments who employ 20 or more employees in their establishment but if any establishment has less than 20 employees then they can register itself voluntarily.
Benefits Of PF Registration
The following are the benefits of the PF registration:
- The employee gets a lump sum amount after his/her retirement.
- The employee also gets the benefit of the Pension Scheme as the employer also contributed to the pension scheme as a part of the PF contribution. From 12% of the PF contribution 8.33% goes into the pension scheme
- The employee can withdraw this fund in any case of an emergency like marriage, loan repayment, etc.
- There is no need to create a different PF account at the time of switching the job. The same PF account is carried forward to the new employer. UAN linked with Aadhar Number of the employee gives the benefit in case of transfer.
- The employee can appoint or hire any nominee of himself to get the fund in case of his deceased or death.
- If a person retires after the age of 58 years, he can avail the benefit of both EPF and EPS
- The employee gets the benefit of insurance under Employee Deposit Linked Insurance Scheme by the deduction of 0.5% of his salary as a premium.
- Under this 12% of the basic salary is saved and the employee also gets the interest on his saving, which increase his savings. The current interest rate is 8.5% but it is usually increased from time to time as per the notification or guidelines of the Government.
What Do You Get In PF Registration
Documents Required For PF Registration
- Applicant Name
- PAN Card
- ID proof (Driving License/Passport/Voter ID Card)
- Address Proof of the business premises
- Residential Proof
- Contact Details
- First Sale and Purchase Bill
- GST Registration Certificate, if any
- Bank Details of the Proprietorship
- Cancelled Cheque
- Number of Employees
- Employees Details (Name, Address, Contact Details, Salary, Date of Joining, etc)
- Certificate Of Incorporation/Registration
- Memorandum of Association and Article of Association or Partnership Deed or LLp Agreement
- PAN Card
- ID and proof Address of the Directors or Partners (Driving License/Passport/Voter ID Card)
- DSC of the Directors or Partners in case of LLP and Company
- Address Proof of the business premises
- Contact Details
- First Sale and Purchase Bill
- GST registration certificate, if any
- Bank Details of the Proprietorship
- Cancelled Cheque
- Number of Employees along with Designation and ID proof
- Employees Details (Name, Address, Contact Details, Salary, Date of Joining, etc)
- Details of the Nominee of the employees
Let our experience be your guide
PF Registration Online Starting @ iNR 4999
Frequently Asked Questions
Will PF registration help in the collection of pensions?
If an employee is retiring from his/her service after attending the age of 58 years then as per the Employee Provident Fund Act the employee can claim total provident fund including employer and employees’ contribution along with interest accrued. Besides this the employee is eligible to get the pension amount under (EPS), the amount of pension depends upon the year of service.
When is PF registration mandatory for the employer?
The following establishments are mandatory to register itself under the EPF portal:
- Factory engaged in any industry having 20 or more employee.
- Other establishment having 20 or more employees during the previous year.
- Central Government can apply for the PF registration even if they have less than 20 employees.
- Establishments having less than 20 employees can apply for PF registration but it will be considered as voluntary registration.
What is the rate of PF contribution?
There are two different categories for the rate of PF contribution depending upon the number of employees hiring in an establishment.
If an establishment has 20 or more employees then:
- EMPLOYER’S CONTRIBUTION: An employer will contribute 12% of the basic salary of employee plus dearness allowance
- EMPLOYEE’S CONTRIBUTION: An employee also has to contribute 12% of his/employee’s basic salary including dearness allowance
- Example: Mr Ram is an employee of XYZ Pvt ltd and he is getting a salary of Rs. 12000 p.m and dearness allowance of Rs. 1000 p.m. then the contribution will be as follow:
XYZ Pvt Ltd’s contribution to PF: 12%(12000+1000) = 1560
Mr. Ram’s contribution to PF: 12%(12000+1000) = 1560
NOTE: The employer’s contribution of 12% is bifurcated as follows:
- 33% is converted or transferred into the Employees Pension Scheme
- 67% is transferred into the Employees Deposit Linked Insurance (EDLI)
If an establishment has less than 20 employees then:
- The employer has to contribute 10% of the basic salary plus dearness allowance.
What is the rate of interest in EPF?
The interest rate of PF is 8.50% for the financial year 2019-2020. The total fund in the PF account is 100% exempt from the Income Tax.
What is UAN Number?
UAN is known as Universal Account Number, it is allotted to the employees at the time of registering itself under as an employee under EPF portal. This is a unique account number allotted to the employees after filling all their details like name, address, father’s name, PAN, date of birth, etc. This number cannot be changed even if the employee changes his employment or service.
What if the employee is not registered at the EPF portal?
PF registration is optional for those establishments who employ less than 20 employees, but if the number of employees increased by 20 then the establishment has to immediately get register itself under the EPF portal as an employer.
What is an employee pension scheme?
Employee Pension Scheme or EPF is a social security scheme framed under the Employees’ Pension Scheme 1995. Under this scheme, the employees get the financial benefit after his/her retirement by way of pension. The employee gets the amount of pension after the retirement depends upon the contribution that is made by him along with his employer in the Pension Fund.
What is the PF return filing procedure?
- The establishment has to file the monthly return, it will be filed online through employer login
- It shall be filed before 15th of every month
- It is filed in ECR format which is given in the ECR payment option into the login account.
- Firstly ECR format has to be downloaded and all the required details have to be filled and after that convert it into TXT form for uploading
- Once it is uploaded make the payment of contribution online directly on the EPF portal.
What is the penalty for delay in payment by the employer?
- If an employer makes any default in the payment of:
- Contribution; or
- makes default in complying with the provision of section 6; or
- section 17 (3)(a) related to the payment of inspection charges; or
- payment of administration charges:
will be punishable with the imprisonment which may extend to 3 years but
1. Default in payment of employees’ contribution which is deducted by the employer from the wages of the employee then there will be imprisonment of not less than 1 year and a fine of Rs. 10000
2. In other cases, imprisonment shall not be less than 6 months and a fine of Rs. 5000
What is the due date for PF filing with EPFO?
The establishment has to file the return on every month. It should be filed before the 15th of every month, if an establishment fails to file such return then it attracts the penalty provision for the same.
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