Companies registered under the ESIC through MCA portal will have to declare their status within 6 months of the registration

The Employees State Insurance Corporation (“ESIC”) has notified that the companies that are registered in ESIC through Ministry of Corporate Affairs (“MCA”) portal will have to declare their status as a company.

Key takeaways:

1. The companies registered to ESIC through MCA portal will have to declare their status within 6 months of the registration to avoid defaulter action.
2. Before the end of the “inactive mode” the Companies registered under ESIC can further extend the “inactive mode” period for six months and can continue to extend in similar manner as per the status of the company.
3. The option of declaring “inactive mode” will not be available to the employer after the expiry of six months.

Background

In continuation of the office letter dated 21.11.2022 regarding “online registration through MCA portal and Inspection of the units”, it was observed from various Regional/Sub Regional offices that, some employers who had registered with zero number of employees were unable to exercise/use the “Dormant Option” in their employer’s id and in this regard after consultation with the Information and Communications Technology (“ICT”) Cell, it was found that the Companies will have to declare their status.

Source: Ministry of Labour and Employment