The recent notification of Employees State Insurance Corporation (ESIC) dated 22nd December 2022, has triggered auto compliance under ESIC Act for the newly incorporated companies unless they register on ESIC and extend their dormant status. Below is the gist of the notification:
- Registration of ESIC for New Companies has been discontinued on Shram Suvidha Portal w.e.f. 15th February 2020 and the same is being done through MCA Portal (SPICE + & AGILE-PRO Forms) at the time of company formation. However, it was clarified that compliance of ESIC is to be done once the above mentioned companies reach the threshold limit under ESIC Act.
- Latest update mentions that if the companies registered through MCA portal are not falling under the applicable threshold limits within 6 months, the companies are required to login on https://esic.gov.in/ and extend “dormant” status of company by filling required details. Otherwise, the company shall be considered as “active” under the act and shall be required to comply with requirements under the ESI Act.
- Notification further empowers the ESIC officials to take penal action against defaulting entities.
- Dormant status can be extended for a maximum period of 180 days in one time.
Therefore, it is essential for companies incorporated after 15th February 2020 & not having reached the ESIC compliance requirement i.e having 10 or more employees to update their status as dormant on the ESIC portal at the earliest.