ESI Registration in India: Step-by-Step Process

ESI Registration in India is mandatory for employers who employ a specified number of employees and fall under the coverage of the Employees’ State Insurance Act, 1948. The ESI scheme provides social security benefits such as medical care, sickness benefits, maternity benefits, and compensation for employment injury. In this Saving Mantra guide, we explain what ESI registration is and the step-by-step process for ESI Registration in India in a simple and practical manner.


What is ESI Registration?

ESI Registration is the process through which an employer registers their establishment under the Employees’ State Insurance Corporation (ESIC). Once registered, the employer must contribute to the ESI fund and provide statutory benefits to eligible employees.


Who is Required to Register Under ESI?

ESI registration is mandatory if:

  • The establishment employs 10 or more employees (threshold may vary in some states)
  • Employees earn a monthly wage of up to ₹21,000 (₹25,000 for persons with disabilities)
  • The establishment is a factory, shop, hotel, restaurant, cinema, or commercial office

Benefits of ESI Registration

Benefits for Employees

  • Comprehensive medical care for employee and dependents
  • Sickness benefit during medical leave
  • Maternity benefit for women employees
  • Disablement and dependent benefits
  • Funeral expenses coverage

Benefits for Employers

  • Legal compliance with labour laws
  • Enhanced employee satisfaction and retention
  • Protection against employee-related medical liabilities

Step-by-Step Process for ESI Registration in India

Step 1: Check Applicability

Confirm whether your establishment meets the employee count and wage threshold under the ESI Act.


Step 2: Gather Required Documents

Collect employer, establishment, and employee-related documents before starting the registration process.


Step 3: Visit ESIC Portal

Access the official ESIC portal and register as an employer by providing basic establishment details.


Step 4: Fill Employer Registration Form

Enter information such as:

  • Employer name and address
  • Nature of business
  • Date of commencement
  • Number of employees
  • Bank account details

Step 5: Upload Documents

Upload the required documents in prescribed formats for verification.


Step 6: Submit Application and Get Registration Number

After submission, the system generates a 17-digit Employer Code Number, which serves as proof of ESI registration.


Step 7: Register Employees Under ESI

Register eligible employees on the portal to generate Insurance Numbers and ESI cards.


Documents Required for ESI Registration

Employer / Establishment Documents:

  • PAN Card
  • Address proof of establishment
  • Registration certificate or license (Shop Act / Factory License)
  • Bank statement or cancelled cheque

Employee Documents:

  • Aadhaar Card
  • PAN Card
  • Salary details
  • Date of joining

ESI Contribution Rates

  • Employer Contribution: 3.25% of wages
  • Employee Contribution: 0.75% of wages

(Subject to change as per government notification)


Post ESI Registration Compliance

  • Monthly payment of ESI contributions
  • Filing of periodic returns
  • Maintenance of employee records
  • Timely updating of employee details

Penalty for Non-Compliance

Failure to register under ESI or delayed contribution may lead to interest, penalties, and prosecution under the ESI Act.


Why Choose Saving Mantra for ESI Registration?

  • Expert-assisted ESI registration
  • Accurate documentation and filing
  • Affordable and transparent pricing
  • Support for ongoing ESI compliance
  • End-to-end professional guidance

Conclusion

ESI Registration in India is a crucial labour law compliance for eligible employers. Following the correct step-by-step ESI registration process ensures employee welfare, legal compliance, and smooth business operations. With Saving Mantra, ESI registration becomes simple, fast, and hassle-free.