What is EPF ?
EPF or employee provident fund is a retirement scheme that every salaried employee can avail from their employer.
What is the use of EPF ?
● It helps in saving money for the long run. There is no requirement to make a single, lump-sum investment.
● Deductions are made on a monthly basis from the employee’s salary and it helps in saving a huge amount of money over a long period.
● It can help an employee financially during an emergency.
What does it mean to give up PF?
PF registration cannot be cancelled. It can, however, be surrendered. When you request this provision, you permanently forfeit your membership. No contractor wants to be in this situation, but it is sometimes unavoidable.
What is the procedure for cancelling a PF registration?
Surrendering PF registration is not an easy task. Relevant government agencies want to make sure you meet the requirements for permanent closure. You can’t blame them because unscrupulous contractors and business owners refuse to pay their fair share of provident fund contributions made by employees.
You cannot cancel your providence fund registration online. You must go to the office where you were registered.
Here are the steps to take in order to cancel your PF registration.
Surrendering your PF registration should not be a stressful experience. However, if you don’t know what you’re doing, it can be difficult. Hopefully, you won’t have any problems after reading this guide.
Gather all files and data related to ESIC and PF registration. You don’t want to start running around looking for documents when responsible officials begin inspecting your files.
Can a contractor opt out of provident fund registration?
When your company registers with the employee provident fund organisation and is accepted, you cannot cancel your registration. It’s peculiar. Such provisions, however, are in place to protect against certain irregularities.
When a business downsizes or reduces operations to the point where it has fewer than 20 employees, it must still file periodic returns with the provident funds. Even if your company or organisation has only one employee, you must file returns. When a contractor goes out of business, however, there is nothing to file. In such cases, you should surrender the PF registration.
What Documents Are Required For EPF/ESI Account Surrender/Closer?
● Bank Account Closure
● Electricity Surrender
● Returns for IT and GST from the previous two years
● Exit Employees receive full and final settlement and payment.
● Surrender of any trading licence
● If it is an LLP or a private limited company, notify the MCA.
● Machine proof of sale if it is factory
● Telephone surrender
● Dissolution of a lease or rental agreement
● If you have any other relevant documents, please provide them.
You may be required to present the following documents at the PF office:
● Documents from the sales tax division. This is a sales tax return that businesses must file with the tax agency on a monthly or quarterly basis.
● Telephone document surrender. Simply walk into your service provider’s office, fill out the surrender forms, and you’ll be on your way in no time. The process is simple, especially if you have no outstanding bills with the service provider. In some cases, they may try to persuade you to keep your phone; simply inform them that you have made your decision so that you do not waste time.
● Where necessary, surrender of a trading licence. Fill out the surrender form and deliver it in person or by mail to the appropriate authorities. However, in some cases, you may not be required to present your trading licence.
● You must also provide IT and GST returns for the previous two years.
● You must also show a receipt for payments made to exit employees. If you have contributed to the PF as required, you should have the necessary documentation. If the receipts are not available for some reason, please contact the nearest EPFO office https://www.epfindia.gov.in/site en/Location an office.php.
● Fill out the online surrender of connection form and wait for a response from your service provider. Electricity documents must be surrendered.
● The EPFO requires that bank account documents be closed. If you haven’t already, close your business bank accounts before visiting EPFO offices. PF officials want to ensure that your business is no longer in operation.
● In most cases, you may also be asked to terminate your lease or rental agreement.
● Factory owners must provide proof that machinery has been sold.
● Other documents, such as an affidavit from company directors or the board of trustees, may be required depending on the circumstances.