Others

PF/ESI Registration and Compliances

EPF:
Employee provident fund or EPF is a measure of saving for the employees, which can be used as a supporting income on retirement, or as a measure of immediate relief in case of urgent requirements. In this scheme both the employee & employer contribute certain amount to the fund. The Employer deducts the employee’s share from the salary of the employee and after adding the employer’s contribution; the entire amount is deposited by the employer in the employee’s PF account. The interest earned on this investment is also credited in account of the employees. Every Factory and Notified business entity such as shops, cinema etc. that is employing more than 20 employees will mandatorily need to apply for EPF, even a lesser no of employees may also warrant the registration if same is provided in the Act.

ESI:
Employee State Insurance (ESI) is a mandatory insurance scheme for workers for giving financial assistance in the event of medical emergencies. This compulsory insurance also helps employers to cover up their contingent liability of treatment and medical expenses, which may be incurred if an accident has happened at the business premises or factory. On the other hand, it offers economic & medical assurance to workers and its dependents. Besides providing medical benefits to workers and its dependents it also ensures worker from temporary or permanent disablement and sickness. This scheme is applicable to all non-seasonal factories and other notified establishments employing 10 or more persons. The existing wage limit for coverage under the Act effective from 01/01/2017 is Rs.21,000/- per month (Rs. 25,000/- per month in the case of persons with disability)

All the business entities statutorily required to comply with PF and ESI schemes have to get registered under the respective Act. The entities have to make payments of the specified amounts towards the fund and file periodical returns under respective Acts and Rules thereunder. Non-compliances with the PF and ESI provisions may attract interest, fines and even imprisonment in case of serious offenses.

MSME Registration

MSME stands for “Micro, Small & Medium Enterprises”. The Micro; Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to facilitate the development of these enterprises and enhance their competitiveness.

The two factors determining the status of any enterprise as – Micro, Small or Medium are

• Investment in plant and machinery
• Turnover

As per the Notification dated 1^st June 2020 the enterprise may be classified as under

• Micro Enterprise:
  Investment in Plant and Machinery or Equipment not more than Rs.1 crore; and Annual Turnover not more than Rs. 5 crore

• Small Enterprise:
  Investment in Plant and Machinery or Equipment not more than Rs.10 crore; and Annual Turnover not more than Rs. 50 crore

• Medium Enterprise:
  Investment in Plant and Machinery or Equipment not more than Rs.50 crore; and Annual Turnover not more than Rs. 250 crore

Getting the MSME Registration is not compulsory; however, it is very advantageous for the business. All types of business entities – sole proprietorship, partnership firm, limited liability partnership, private sector company or a public sector company may get registration under MSME.

Benefits:
The government in order to promote the economic growth of the country has always been supporting MSME’s in various ways such as easier loans at cheaper interest rates, subsidies, loan repayment relaxations, export incentives etc.

FSSAI Registration/Licence

FSSAI stands for Food Safety and Standards Authority of India.  It is a regulatory authority created by the passage of the Food Safety and Standards Act, 2006.  All the business activities related to food business in India such as manufacturing, storage, transportation or distribution of food products, are required to apply and secure an FSSAI registration or an FSSAI License.

The FSSAI Licence and FSSAI registration are two different terms, and the size and nature of the business defines whether one has to obtain an FSSAI registration or FSSAI License.

Non-Profit Organization Registration

In India the Non-Profit Organization may register either as Trust, Society or company under section 8 of Companies Act 2013.

After incorporation, such Non-Profit Organization can acquire 12A certificate from the Income Tax Department. By virtue of this certificate, the Non-Profit Organization is exempted from the income tax for the entire lifetime on it’s surplus income. To obtain 12A Registration, an application in Form 10A for registration of charitable or religious trust or institution must be made online to the Commissioner of Income Tax along with the certain documents.

Also, an NPO must obtain 80G certificate. This certificate allows donors making donations to an 80G certified NPO, to avail deduction under section 80G of the Income Tax Act.

Import Export Code

Import Export Code (Commonly known as IEC) is mandatory before starting an import export business of goods in India. However, in case of import/export is of services or technology, IEC is required in only limited circumstances, when import/export is in ‘specified services’ or ‘specified technologies. Despite the fact that obtaining IEC is not mandatory for export of services, it is recommended to have one because certain Export Incentives such as SEIS, can be availed only after having as IEC.

Having a Permanent Account Number (PAN) is pre-requisite for grant of an IEC. And only one IEC can be issued against a single PAN. The IEC issued is valid for all the branches or factories of the importer/exporter.