What is Employees Provident Fund?
Employees Provident Fund (EPF) is a scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is regulated under the purview of Employees’ Provident Fund Organisation (EPFO) which is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. Basically, EPF is normally like a benefit to an employee during the retirement provided by the organization. EPF registration is mandatory to take benefit of EPF scheme.
Who is Require to Register with EPF?
- Every establishment in which twenty or more persons are employed has to apply for Provident Fund Registration within one month from the date of applicability. All employees are eligible to become a member of provident Fund from the date of joining the establishment.
- Every employer to which Provident fund act applies has to deduct and deposit to the central government, the provident fund deducted along with Employer Share, for those employee which basic wage plus dearness allowance is equal or below to Rs 15,000/-
Documents Required for EPF Registration
- Copy of the PAN card of the company
- Self attested copy of, Bank Statement, Landline Bill, Power Connection Bill, water Bill in the name of the establishment, Any license/certificate/number issued by any Govt. authority etc., as address proof of the establishment.
- In case of company Memorandum/Articles of Association/List of Directors.
- Copy of registration certificate issued under Companies Act, Sales Tax Act, Co-operative Society act, Importer and Exporter code etc.,
- In case of factory, License number and date of issue of license.
- Business Activity of the firm/company.
- Details of other Registration in any other statute, if any.
- If the establishment is covered under ESIC act, ESIC Number issued by the department.
- Details of employees along with their address, Basic Salaryand date of joining the firm/company with .
- E-Mail id and Mobile number of the firm/company.
- Details of Bank account along with a Cancelled cheque.
Benefits of EPF Registration
EPF is a an investment for the future necessities. Employee get tax free interest and maturity amount. PF money can help in meeting requirements of employees including his retirement goals. EPF money can also help the employees in the time of emergencies when no borrowing option left to him.
EPF can be used for many purposes at different moments as it guarantees benefits such as:
- Accumulation plus interest upon retirement, resignation and death
- Partial withdrawals allowed for specific expenses such as house construction, higher education, marriage, illness etc.
Steps For EPF Registration
- Registration of the organisation with EPFO
- Register the Digital Signature
- Email & Mobile verification
- Final Submission of the EPF application