As a new Section 8 Company registered in Karnataka, with only 2 Directors, 0 full time or part time employees, what are the compliances related to EPF and ESI that need to be done?
We are getting message and email reminders to file something but I don’t think we qualify under the minimum threshold for both cases.
Rajagopalan V
Find Your Voice Foundation
[Draft reply. Waiting for inputs from other Community Members]
Given “Find Your Voice Foundations” structure as a Section 8 Company with only two Directors and zero employees, you are right: mandatory registration for EPF (Employees’ Provident Fund) and ESI (Employees’ State Insurance) is currently not required.
Based on the information you have provided, your company is below the minimum employee count for mandatory threshold noted below:
| Compliance | Mandatory Threshold | Remarks |
|---|---|---|
| EPF (Employees’ Provident Fund) | 20 or more employees | Directors not drawing a salary are not counted as employees. |
| ESI (Employees’ State Insurance) | 10 or more employees | (This applies to Karnataka, where the company is located). Applicable only to employees earning up to ₹21,000/month. |
The Email reminders are likely due to automated, standard compliance tracking. This happens because your company’s PAN/TAN is active in government registration databases & these systems often issue automated reminders to all registered entities.
A agree. These are automated reminders. We also faced similar issues for Section 8 Company. I think we can ignore or just send a letter to EPF office regarding the non applicability, just to be on the right side of the law. ESI is mandatory for staff drawing salaries less than 21000