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.