Breaking Myths Around ESI Registration for Startups!

There are many types of myths rolling around in the market. Myths are basically those statements that people make about anything, which are either true or can be false. So, learn about the myths regarding ESI registration for startups companies with this blog:

A startup company faces many things in its growing stage, such as financial issues, crises, and management issues, etc. These problems totally disturb the startup founder during its growth. And myths are one of them, because myths are also counted among those issues that disturb a small company again and again. When a startup company seeks growth and potential, it goes with the option of the ESI registration process in India and the standards.

ESI PF registration provides many things to a startup company. This certification mandates employees’ rights and social securities, helps in attracting more talented employees, and also helps a startup company in building its image and reputation. But as we previously talked about myths, there are also some myths for ESI registration for the startups compliance guide. That every founder or leader faces, or converts those myths into facts, by itself. Because the ESI registration provides many things to that company, such as medical benefits, financial benefits, etc. 

1. Top 5 Myths of ESI Certification for Startups

Now, look at the top 5 myths about the ESI registration made for startup companies.

When a startup company starts growing, many challenges and issues arise. But the ESI registration solves half the problems of a small company. Those issues in which the ESI certification helps are such for, help a startup in attracting good and talented employees, helping that startup company in following legal standards and labour laws for preventing fines and penalties, and also making a reputation for that company in the market.

So, again, going to the part of ESI myths and facts regarding ESI certification for small companies:

2. How are Myths Made for ESI Registration?

What are those things that force people to make unrecognized myths for ESI certification? So, myths are mainly generated from a lack of awareness of the actual rules and the online process. That puts misconceptions in the minds of persons. And sometimes, due to having less knowledge about this type of certification, registration can also lead to misconceptions in the minds of different people.

So, that’s why, look at those points that explain how people’s perceptions about ESI registration are created:

1. Misunderstanding – The main source from which myths are generated is due to misunderstandings. And the misunderstandings for ESI standards that people have are, it is only for government employees, but this certification private-sector employees in qualifying businesses with ten or more workers.
2. Experience process complexity – In the process of getting ESI certification, physical documents are involved. Due to this, people think that the process is a tedious task. But the whole process is now online, designed to be user-friendly with digital document submission.
3. Confusions over rules – People also get confused about who pays for wage ceilings and exemptions, which case myths. Such as employees earning below a daily wage limit are exempt from their contribution. But the employer still must contribute for them.
4. Fear of penalties – The registration of ESI has become compulsory due to the scheme of “SPREE”. Not registering can lead to penalties and requests for past-due payments. This led to the myth that non-registration could go unnoticed indefinitely.
5. Confusion about benefits – Problem in getting full benefits of this scheme, or due to having a belief that the benefits are not very good, can also lead to myths. But in reality, the ESI certification provides many benefits, such as health and social security benefits, such as health care, maternity, illness, and disability benefits.

3. Is the ESI Certification Only Made for Government Employees?

Many people got confused about the ESI registration for startups is only made for government employees, but that’s not the truth. The truth is that the ESI certification is made for employees in the private and unorganized sectors, not mainly for government employees. This scheme is designed to provide employees with their health security and social security, which are managed by the Employees’ State Insurance Corporation (ESIC). The targeted companies of this ESIC certification are non-seasonal factories, shops, hotels, restaurants, cinemas, and road transport establishments.

Therefore, based on these points, we cannot conclude that ESIC issues this certification solely for government employees. Because if any company meets the required specification of ESI standards, for that business, the ESI certification becomes compulsory. Thus, if you work for the government, then you don’t think that you are the only one who is getting the ESI benefits and facilities for your work.

4. Face Myths in Your Startup Company with LegalRaasta.com

We will help you every step of the way as you grow. Whether you’re launching a startup, running an organisation, or managing production.

We do far more than offer services. Do you need ESI registration for startups? We take care of your finances, so you can focus on what actually matters. Finding someone who is skilled at managing obscure markets can be hard. But our specialists will always ensure your business stays stable, even when times get difficult.

But, we don’t just focus on numbers and financials, we also provide:

• Virtual CFO service
• GMP certification
• Hallmark certification
• PF registration
• NBPC certification

And much more..