byShine legal India                        Published On 2025-06-02

Employee State Insurance (ESI) registration is a legal requirement for many businesses in India. Employee State Insurance is overseen by a government organisation known as the Employees State Insurance Corporation (ESIC), which takes care of how the ESI scheme works and helps employees get its benefits. Businesses that have 10 or more workers need to get ESI registration. The exact requirement of ESI registration varies based on the type of business activity and its location. Shine Legal India assists businesses in completing the ESI registration process. We take care of all the necessary paperwork and steps to ensure that the ESI registration is done properly and on time. With a deep understanding of the rules and a focus on customer needs, we at Shine Legal India make the ESI registration process simple and easy for you. 

What is ESI (Employees State Insurance) registration 

ESI registration is the process by which employers and employees sign up for the Employees State Insurance (ESI) scheme. The Employees State Insurance Act of 1948 introduced the ESI scheme as a social security initiative aimed at providing financial protection to workers. The ESI registration scheme is designed to safeguard employees and their families by offering healthcare services and financial relief in cases such as illness, maternity, work-related injuries or even death. The ESI registration scheme offers employees with various benefits and safeguards, such as

• Health and medical care 
• Maternity assistance 
• Workplace injury and disability
• Death benefits 
• Unemployment support

Applicability of ESI (Employees State Insurance) Registration

ESI registration becomes mandatory for establishments with a workforce of 10 or more in many states or (20 in some specific states) where employees earn a monthly wage up to  Rs. 21,000 per month or Rs. 25,000 for people with disabilities. The establishments listed below must register under the ESI scheme-

• Factories and manufacturing establishments with 10+ employees.
• Shops which include retail/wholesale with 10+ employees.
• Restaurants and hotels with 10+ employees.
• Road transport establishments with 10+ employees.
• Cinemas and preview theatres with 10+ employees.
• Newspaper establishments which include printing/publishing with 10+ employees.

Unlocking the benefits of ESI (Employees State Insurance) registration 

• Medical care- As soon as an employee and their family begin working for an insured company, they are eligible for full medical coverage through ESI registration.
• Self-financed scheme- ESI registration is part of a self-funded scheme in which both employees and employers contribute to the Employees State Insurance Fund.
• Benefits- Insured workers who register for ESI are eligible for both monetary and health benefits.
• Management- ESI registration is governed by the Employees State Insurance Corporation, functioning under the supervision of the Ministry of Labour and Employment, Government of India. 
• Legal compliance- Employers can avoid fines and legal issues by complying with the legal requirements through ESI registration.
• Unemployment benefit- ESI registration provides unemployment benefits to employees who lose their jobs due to injury or disability, offering crucial financial support during recovery.

Checklist of essential documents required for ESI scheme registration

• PAN cards for the business or employer as well as the employees.
• Registration certificate issued under the Factories Act of 1948 or the Shops and Establishments Act of 1954.
• Aadhaar card of business owners, partners or directors.
• Photographs of the employer and all employees.
• Address Proof of the office (like electricity bill, rent agreement, etc.)
• A business’s bank statement or cancelled cheque.
• GST registration certificate (if applicable).
• Employee details which include their salaries also.
• List of directors or partners with contact details.
• Partnership deed or company incorporation certificate.
• Attendance register of the employees.

ESI (Employees State Insurance) registration online process

• Go to the official ESIC website.
• Sign up by entering basic details like your company name, state, email and more.
• Look out for an email containing your account login information.
• Click ‘New Employer Registration’ after logging in.
• Provide correct information on Form 1 for employer registration.
• Upload scanned copies of the required documents.
• Review everything and submit the application.
• Pay the government registration fee as per the given instructions.
• After everything is verified, you will receive a 17-digit unique ESI registration code.
• Once you get the ESI registration code, register each employee on the portal by entering their personal details and generate their individual ESI numbers.

Next Steps after ESI (Employees State Insurance) registration

• Maintain employee records- After ESI registration, keep accurate records of all employees attendance, wages, accidents and inspections.
  
• File monthly returns- After ESI registration, submit monthly reports with details like employee information, salaries and ESI contributions.
  
• Accident record register-After ESI registration keep a log of workplace accidents for reporting and claims.
• Display Information- After ESI registration put up posters or notices that inform employees about their rights and ESI benefits.

Penalties for non-compliance of ESI registration 

• Interest- If ESI registration payments are made late, a yearly interest of 12% is charged.
• Penalties for ESI registration non-compliance- Fines may be imposed for not registering or failing to make timely payments.
• Legal action for ESI non-compliance- Legal action may be taken if ESI registration is not followed.
• Reputation risk from ESI non-compliance- Not following ESI registration rules can harm your company’s reputation which lowers employee morale and trust.

Why Choose Shine Legal India for ESI Registration

Shine Legal India provides professional and dependable ESI registration services with the assistance of a skilled team of chartered accountants and legal specialists. The team at Shine Legal India understands how important it is for employers to meet ESI registration compliance requirements. We at Shine Legal India handle the entire process of ESI registration with precision and attention to detail. Shine Legal India also provides regular updates and expert support throughout the ESI registration process. Our team is always available to answer your questions and provide guidance, ensuring your business remains fully compliant.