Process for Applying for Dormant Status at ESIC Portal for Newly Incorporated Companies
Introduction
In this editorial, we shall discuss the process for applying dormant status for newly incorporated companies with AGILE with ESI Act.
Applicability of ESIC
The ESI scheme is applicable to all factories and other establishments as defined in the Act with 10 or more persons employed in such establishment. However, the threshold for coverage of establishment is 20 employees in Maharashtra. The scheme under the Act also supports restaurants, motor road transports, newspaper establishments and undertakings, movies and purview theatres, hotels, and shops.
Company Law Provisions
If any new company gets incorporated on the MCA Portal (OPC, Private or Public), such a company needs to file web form AGILE PRO. In AGILE PRO, the company has to mandatory apply for ESIC registration. Therefore, every company getting incorporated in India shall be allotted an ESIC registration no. from the date of incorporation irrespective of the number of employees in the Company.
Practically, the new incorporated companies will have to comply with the provisions of ESI Act, 1948 when they reach the threshold limit of employment under the ESI Act.
Latest Clarification by ESIC
In case the companies registered through the MCA portal are found not coverable as per the statutory provisions of the ESI Act, they need not make compliance for the next 6 months or till they reach the threshold ESIC coverage, whichever is earlier.
Dormant Status
If a company doesn’t reach the threshold in 6 months, it has to log in on the ESIC website to further extend the ‘dormant’ mode. In one go, the maximum period it can choose is 6 months. In case it does not extend the same, the registration will automatically activate, and the company has to start compliances under the ESIC Act. Before the expiry of 180 days from the application of dormant status, the company has to log in on the ESIC website to further extend the ‘dormant’ mode.
Steps for Applying for the Dormant Status
- Go to esic.gov.in and click on Employer Login.
- Login to ESIC Portal.
- A tab opens for selecting whether the company wishes to opt for Dormant Status.
- When you opt for No in the first option, the provision of ESI Act 148 is not applicable on the company with immediate effect and the system asks you to mention the grace period till that period dormant status remain valid.
Conclusion
After reading the Circular of ESIC, one can opine that it is mandatory for every company incorporated by AGILE PRO to comply with the compliances of ESIC Act unless the company has applied for Dormant Status of the same every 6 months.
Disclaimer:
Estabizz Fintech compiled the material in this article using the most recent Acts, Rules, Circulars, Notifications, Provisions, Press Releases, and material applicable at the time. They ensured the completeness and correctness of the material through due diligence. When using this material, users must consult the relevant, applicable legislation. The given data may change without prior notice and does not constitute professional advice. Estabizz Fintech disclaims all liability for any results from the use of this material.
