When EPF Registration for Startups Stops Being a Problem

After starting up a company, many business founders face problems, due to which they become very stressed and tense. That impacts their work life and personal life. Because those founders had many problems and challenges in their businesses, they started thinking that EPF registration for startups was also a problem. But in this blog you we will let them know that PF registration is not a problem, it’s a beneficial, mandatory requirement in every company.

There are many reasons why founders of startups or small companies start thinking that PF standards are a challenge or an issue. But they don’t know that it is a beneficial thing for the employees and for the employer itself. Following PF registration means adhering to mandatory labour legislation and employee rights. Many leaders think that PF registration is only beneficial for the employee and not for them, due to which they always try to refer to the PF standards in their companies. Even many times it is seen that they skip PF registration problems by thinking that the process of getting it is very complicated, so they skip this and find more easier to get it.

So, in this blog, you will learn about why business employers find PF registration a headache and why skipping this is not a good choice. 

1. Reasons Why Employers Found EPF Registration a Problem

Mainly, founders or employers hate EPF registration for startups for many reasons. We can say that due to a lack of knowledge about  EPF online filing benefits, facing issues in applying for PF certification, or due to thinking that PF registration is a very complex thing to get. And the other reasons are such as due to complexity, administrative burdens, technical issues with the online portal, and challenges related to employee data management.

That’s why they never got their EPF registration help for their companies. In some cases, founders also think that PF registration only provides benefits to employees, not to them. So, learn more deeply about these reasons with the information provided below:

1. Complexity – For startups or small businesses, the procedure of getting PF registration can be overwhelming, or they don’t know about the labour laws. Due to which these founder got confused in terms of getting their PF.
2. Burden – Founders see employee PF registration as a burden on them because the process of PF certification contains significant paperwork and ongoing data management, such as gathering and verifying employee details. With that, they also have to manage Universal Account Numbers (UANs) and ensure timely monthly contributions and returns. Due to this, they never go with the PF certification.
3. Technical problems – In many cases, employers face technical issues such as technical glitches, error messages, and downtime when using the online EPFO portal. Due to that, they skip the process of employee benefits scheme because of not having a smooth process of registration, contribution, and claim processes.
4. Data errors – Because of filling in wrong or unverified details of employees in a company’s record and the EPFO system. So, this also becomes a frequent problem, resulting in claims being denied and other problems.
5. Cooperating employees – When employers fail to resist or cooperate with their employees, or face issues in getting necessary documents or information. Then, due to this PF process becomes pending and delays compliance.
6. Legal Consequences – When the founder pretends that EPF registration for startups is a burden, then in that case they face many legal consequences. These are such as significant financial penalties, interest charges, audits, and even legal action or criminal liability. That becomes a serious concern over time.
7. High turnover – Managing real-time validations and documentation needs, such as picture authentication laws, is challenging for industries with significant staff turnover, contract labour, or remote workers through payroll automation.

2. What Changes When You Streamline the PF Process

Now you know why many founders or leaders think EPF registration for startups is a burden for them, and happens if they implement PF registration in their company.

After implementing PF standards in their business, they achieved numerous benefits, including digital transformation and rule simplification. As a result, their company implemented a system that is more effective, transparent, and user-friendly for both companies and employees.

Thus, read more briefly on this topic with these given points:

For employees

• After implementing PF standards, your company’s employees are now creating their Universal Account Number and activating it (UAN) instantly using Aadhaar Face Authentication Technology (FAT). With the help of the UMANG app, without going to any actual offices.
• Due to PF standards, employees can easily update their profile information with Aadhaar-verified UANs. And their personal details can be easily updated online, with self-approval in many cases. Due to this, they can easily skip the processing delay of 28 days.
• During that time when any employee changes their job, then in that case they can easily transfer their PF accounts. The revamped Form 13 streamlines this further, often removing the need for employer approval and associated delays.
• With PF registration, the company members can easily track their application status of applications online, and Transfer certificates can be downloaded via their member portal.
• In any bank account in India, the Centralised Pension Payment System (CPPS) allows for pension disbursements. With a partnership with India Post Payments Bank, which offers doorstep digital life certificate services for pensioners.

For employers

• The PF system offers them automated validations and real-time checks under the Electronic Challan-cum-Return (ECR) system. Due to which the errors of data and manual interventions are reduced.
• The PF registration also reduces the workload of employers by removing their approval for many profile updates and bank KYC seeding requests.
• With the scheme of ‘Vishwas Scheme’, employers can also resolve their long-pending legal disputes over penal compensation for late PF payments. That offers them a clear framework for settlement.
• The management of PF activities is made easier by features like interaction with payroll software and bulk UAN generation for particular circumstances.

The Smart Guide to PF Registration and Employer-Employee Perks

3. LegalRaasta Make PF Registration Easy for You!

We are a trustworthy partner for entrepreneurs and manufacturers, providing a range of services designed to assist you in growing. Need an EPF registration for startups? We can help easily. Whether you are starting a company or growing a business, LegalRaasta matches you up with your PF registration that understands your needs. But we will not only provide general financial services. We overcome the challenges to move you through real legal services, no barriers, only outcomes. Finding a trusted hallmark registration provider is no easy feat. But that is where we come in.

We also provide:

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4. Frequently Asked Questions

Is PF registration really a headache, or is this the thinking of the founder?

Ans. We can say that PF registration isn’t a problem or headache. However, it provides benefits to both the owner and the workers. Hence, prove that this is the thinking of the founder only.

Which businesses pretend PF registration is a headache?

Ans. Mainly, startups and small business founders perceive PF registration as a headache for them. Because of not having enough knowledge about PF benefits.

For what reasons do founders see PF as a problem?

Ans. Due to its complexity, long process, technical problems, and limited knowledge of it. So, due to these reasons, founders think of skipping this certification in their companies.

Are there any solutions by which the founder never skips PF registration?

Ans. Providing them enough knowledge about PF benefits, making the PF process easier for them, and supporting them in their PF registration can help founders never skip PF registration.

Who issues PF registration?

Ans. The Employees’ Provident Fund Organization (EPFO) issues PF registration.