Provident Fund Registration
Provident Fund Compliance, Easily and Fast with VenueTax | Kolhapur
Provident Fund Registration
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 came into effect on 4 March 1952. The organisation is administered by a Central Board of Trustees, composed of representatives of the Government of India, State governments, Employers and Employees. The board is chaired by the Union Labour Minister of India. The Chief Executive of the EPFO, the Central Provident Fund Commissioner, reports to the Union Labour Minister through the Secretary of Labour and Employment in the ministry. The headquarters of the organisation is in New Delhi.
The Constitution of India under “Directive Principles of State Policy” provides that the State shall within the limits of its economic capacity make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old-age, sickness & disablement and undeserved want. The EPF & MP Act, 1952 was enacted by the Parliament of India and came into force with effect from 4 March 1952 as part of a series of legislative interventions made in this direction. Presently, the following three schemes are in operation under the Act:
- Employees’ Provident Fund Scheme, 1952
- Employees’ Deposit Linked Insurance Scheme, 1976
- Employees’ Pension Scheme, 1995 (replacing the Employees’ Family Pension Scheme, 1971)
Retirement fund body EPFO on 21 February 2018 lowered the rate of interest on employees provident fund to 8.55% for 2017-18 from 8.65% in the previous fiscal.
The question of providing for the future of industrial workers after their retirement or for their dependents, in the event of their premature death, engaged the attention of the Central Government for a long time. The first Provident Fund Act passed in 1925 for regulating the provident funds of some private concerns was limited in scope. In 1929 the Royal Commission on Labour stressed the need for formulating schemes for instituting provident funds for industrial workers. In the Indian Labour Conference held in 1948, it was generally agreed that the introduction of a statutory provident fund scheme for industrial workers might be undertaken. To test such a scheme in a restricted field the Coal Mines Provident Fund Scheme was launched in 1948. The success of this Scheme led to the demand for its expansion to other industries.
Accordingly, close of the year 1951 witnessed the promulgation of the Employees’ Provident Funds Ordinance. The Ordinance promulgated on 15 November 1951 was replaced by the Employees’ Provident Funds Act, 1952 which extended to the whole of India except Jammu and Kashmir. The Employees’ Provident Funds Scheme, 1952 framed under section 5 of the Act was brought into force by stages and was enforced in its entirety by 1 November 1952.
On 1 October 2014, Prime Minister of India Narendra Modi launched Universal Account Number for Employees covered by EPFO to enable PF number portability.
Other things to know about PF
EPF registration is mandatory for all establishments-
- which is a factory engaged in any industry having 20 or more persons, and
- to any other establishment employing 20 or more persons or class of such establishments which the Central Government may, by notification specify in this behalf.
Provident Fund Registration
Registration with Provident Fund Organisation is mandatory for establishments employing 20 or more employees. However, it can also be taken on the voluntary basis with the consent of its employees. VenueTax assist you to obtain registration with PF department for the most reasonable fee and fast. The provident fund is a social security scheme having the government guarantee to its members. The provisions of the PF Act applies to the establishment based on the number of employees. The establishments must apply for registration within 30 days of reaching the number of employees required for coverage. After registration with PF, the establishment must allot Unique Identification Number (UIN) number to its eligible employees and deposit the PF contribution before 15th of next month.
To complete the KYC documentation and to complete the PF transfer claim, a Digital Signature (Class II or above) of the authorized person is required to be registered with EPFO department.
Through the Online Transfer Claim Portal (OTCP), fill in the names, designations and mobile numbers of the authorized signatories. Following which, upload the digital certificate of the authorized signatories.
You can upload signatures of up to 3 authorized signatories.
Along with completing the digital signature process, you have to submit Form 9 and a specimen signature. This is a hard copy containing the list of employees at the respective PF office. For any new employee this form can be submitted on monthly or quarterly basis.
Print a letter (in duplicate) on the Company letterhead which is to be signed by the employer authorizing the officials of the establishment for the purpose. The letter would have to be signed by the authorized signatories in the relevant column.
You can revoke a signature of an authorized signatory through the OTCP. On revocation, the digital signatures of the respective signatory would be suspended and any digital claim received thereafter signed digitally by the respective signatory would be rejected. Print a letter (in duplicate) and submit it to the EPFO office to complete the revocation process. The letter can be printed from the OTCP. The rest of the revocation process mimics the signature registration process.
Any withdrawal claim or employee related document that is submitted to the PF office, should to be authorized by a person appointed by the employer. This authorized person’s details along with specimen signature has to be submitted to the PF office to ensure proper completion of the process.