Provident Fund (EPF) Registration

Employees Provident Fund Organization [EPFO] is one of the World’s largest Social Security Organizations in terms of clientele and the volume of financial transactions undertaken. EPF is generally like a benefit to an employee during the retirement provided by the organization.Employees Provident Fund is a means to help employees get a financial cushion when they grow old. Contribution to the fund is also a tax saving option for people working in the government department, public or private sector. Both the employer & employee contribute to the fund every month, which can be used later on retirement. All entities must register with Provident Fund Department within a month as the employee’s count reaches 20. Any delay may result in a penalty.

Services Covered
  • Drafting documents
  • Filing of forms with Authorities
  • Issue of PF allotment letter
  • Documented Follow-up
  • Business hours -CA support
Who Should Buy
  • Any business entity employing 20 or more employees
  • Any business voluntarily wishes to comply with EPF & provide the benefits to employees
How It’s Done
  • Purchase of plan
  • Upload documents on Vault
  • Drafting of documents
  • Submission of documents and application with Department
  • Receipt of Registration letter
Documents Required
  • Name, Contact Number and Email Id of Stakeholder.
  • Self Attested PAN, Aadhar & Passport size photo of Stakeholder.
  • Specimen Signatures of Stakeholder.
  • Latest Electricity Bill/Landline Bill of Registered Office.
  • NOC from owner of registered office. (If Owned)
  • Rent Agreement from Landlord. (If Rented/Leased)
  • PAN, TAN, COI of the Business Entity
  • Authority Letter in the name of a Authorised Person for EPF
  • Employees List along with their KYC for whom EPF is to be complied thereupon.
  • Cancelled Cheque in business name
EPF Registration Process Online

The employer must register the establishment online. With the convenience of online registration the employer can register the establishment by providing the following details:

Establishment details
  • The establishment details to be provided are the Name of the establishment, Address, Incorporation Date, PAN and Type of establishment.
  • If the establishment is a factory then the details to be provided are the Factory License Number, Date of License and Place of issue of License.
  • If the establishment is an MSME then MSME registration details to be provided.
  • If the establishment is registered under Startup India, then the Startup India registration details are to be provided.
E Contacts

The employer must provide email id and mobile number of the authorised person.

Contact Person

Employers must provide details of the contact person like a manager. The details required are: Name, Date of Birth, Gender PAN, Designation date of joining and address details.

Identifiers

The identifiers are the license information that the employer needs to provide.

Employment details

The employment details required to be provided are the Employee strength, Gender, Type of activities, Wages above limit and Total wages.

Branch/Division

Branch details such as name/premise number, LIN (Labour Identification Number) and address.

Activities

The employer needs to enter the NIC Code (National Industrial Classification) and select the nature of business and the activities included from the drop down lists available.

Steps for EPFO Registration for Employers

The employer needs to follow the below-mentioned steps:

Step 1: Visit the EPFO Website

Visit the website and click on the “Establishment Registration” button on the homepage.

Step 2: Register On USSP

The “Establishment Registration” button on the homepage of the EPFO website will open the USSP (Unified Shram Suvidha Portal) sign up page. The employer needs to click the “Sign Up” button.

On the next page, the employer has to provide the Name, Email, Mobile Number, and Verification Code and click the ‘Sign Up’ button to create the account.

Step 3: Fill Registration Form

After the creation of the account on the UUSP, the employer needs to login to the USSP and select the “Registration For EPFO-ESIC” button present on the left-hand side of the screen. Next, select the “Apply for New Registration” button on the right side of the screen.

Two options will appear, i.e. “Employees’ State Insurance Act, 1948” and “Employees’ Provident Fund and Miscellaneous Provision Act, 1952”. The employer will need to select the “Employees’ Provident Fund and Miscellaneous Provision Act, 1952” and click on the “Submit” button.

Upon clicking the “Submit” button the “Registration Form for EPFO” page will open and the employer needs to fill in the Establishment Details, eContacts, Contact Persons, Identifiers, Employment Details, Branch/Division and Activities

Step 4: Attach DSC

After filling all the “Registration Form for EPFO” and attaching the relevant documents, the employer’s Digital Signature Certificate (DSC) is to be uploaded and attached to the form. Once, the DSC of the employer is uploaded, the employer will receive a successful completion of registration form message and an email from Unified Shram Suvidha Platform with a confirmation that the EPFO registration has been completed.

Documents Required For EPF Registration

The following documents need to be attached to the “Registration Form for EPFO” by the employer- 

  • PAN Card of the Proprietor/Partner/Director.
  • Proof of address such as the Electricity Bill or Water Bill or Telephone Bill of the Registered Office (not older than 2 months).
  • Aadhar Card of Proprietor/Partner/Director.
  • Shop and establishment Certificate/GST Certificate/ any License issued by the government for the establishment.
  • Digital Signature of the Proprietor/Partner/Director.
  • Cancelled Cheque or Bank Statement of Entity.
  • Hired/Rented/Leased Agreement, if any.
  • License Proof issued by the Identifier/Licensing Authority.

Services offered by EPFO:

Universal Account Number

A Universal Account Number (UAN) is given to every employee who is contributing towards EPF. Various Member IDs that have been allotted to employees from multiple organisations come under the UAN. Each employee will be assigned only one UAN throughout their employment life. The EPFO allows the distinctive 12-digit UAN to employees. A monthly SMS regarding the EPF amount’s contribution, transferring EPF amount from the previous Member ID to the current one, checking and downloading EPF Passbook, withdrawal of EPF online, and updating KYC details online are some of these the services that the UAN provides. 

However, employees must activate their UAN to avail the services online. Once the UAN is activated, employees can use their UAN and password to log in on the EPFO portal and help themselves with these services.

Online withdrawal of EPF 

The EPF withdrawal amount can be quickly done through online EPF Login with the help of the UAN. Employees who have been unemployed for more than two months are eligible to withdraw their EPF amount. However, the Aadhaar and bank details of the employee must be linked with the UAN. For updating, all these employees must do UAN Login on the UAN member portal.

UMANG App

The EPFO has launched the Unified Mobile Application for New-age Governance (UMANG) for EPF members. Employees can use their UAN and password to avail the services of the UMANG app. Various services, such as viewing EPF passbook, updating profile details, etc., are available on the UMANG app.

Establishments can register online

The Online Registration of Establishments (OLRE) can be completed on the EPFO portal. Employees are also benefitting due to the online presence of the PF code allotment letter.

Helpdesk for Inoperative Accounts 

In February month of 2015, the EPFO department set up the ‘Inoperative Accounts Online Helpdesk’ to help employees track dormant and old inoperative accounts that do not accumulate any interest. Employees can track these accounts and either withdraw the funds or transfer them to the current Member ID. The employees about their previous employment must provide essential details to track inoperative accounts. Employees must activate UAN by employee provident fund UAN activation system regularly.

International workers can generate a Certificate of Coverage 

EPF members working in countries that have Social Security Agreements with India can generate a Certificate of Coverage (CoC) with the help of a centralised online software that the EPFO has launched. 

Monthly returns for exempted establishments 

With the help of the IT tool that the EPFO has launched, exempted establishments can file their monthly returns online without any trouble.

Online transfer of EPF

You can quickly Transfer the EPF amount from the employee’s previous Member ID to the current one. You can do this online transfer with the help of the UAN. The process is hassle-free, paperless, and effortless. You can check your provident fund balance online. PF balance check has been made so easy with a UAN number that you can check pf balance online on your mobile phone.

Online payments of PF

All organisations must make PF payments online. Currently, the following banks have an agreement with the govt for the collection of dues. Viz. Kotak Mahindra Bank, Axis Bank, ICICI Bank, HDFC Bank, Bank of Baroda, Union Bank of India, Allahabad Bank, Indian Bank, Punjab National Bank (PNB), and State Bank of India (SBI).

FAQ:
Who must register with Employees Provident Fund Department?

Any entity, be it a government office, public sector, or private sector entity with 20 or more employees, needs to be registered with the PF Department. The application must be filed within one month of reaching the employee count of 20. Where the employer wishes to provide the provident fund benefit to their employees, he may voluntarily apply for registration.

Do I need to be present in person during the EPF registration process?

You don’t need to be present in person during any stage. Our experts will carry out the entire procedure. You need to upload the required documents on the Witcorp Encrypted Document vault, and you will receive the registration on service fulfilment.

How much time does the Employee Provident Fund Registration process takes?

Usually, the entire process takes a week. Depending on the workload with the government department, the process might take a longer time. Make sure that you keep the required documents ready to complete the entire process in the least time.

While calculating the limit of 20 employees will every employee and labour force be counted?

The compulsory limit of 20 employees includes all permanent, semi-permanent and other contract employees also. The employees can be from housekeeping, security or other contractual workers.

What is the contribution rate of Provident fund & pension scheme?

👉 Registered employers need to deposit 12% of the basic salary of each eligible employee in provident fund account

👉 Eligible employee needs to contribute in total 12% of his basic salary being 3.67% to provident fund and 8.33% in Pension scheme.

Professional Tax Registration & Compliance Filing

Professional Tax is a tax levied on professions and trades in India. It is a state-level tax and has to be compulsorily paid by every staff member employed in private companies. The business owner is responsible for deducting professional Tax from his employees’ salaries and paying the amount collected to the appropriate government department.

Professional Tax is usually a slab amount based on the gross income of the professional. It is deducted from income every month. Some of the state governments have levied professional Taxes, and others didn’t. Professional Tax is a state-imposed tax and is imposed on income earned by employees on rendering their services. Witcorp Expert will help you get registered under Professional Tax without leaving the comfort of your home.

Services Covered
  • Issue of Enrolment/ Registration Certificate
  • Documented Follow-up
  • Business hours – CA support
  • Does not include PT payment
Who Should Buy
  • Every self employed professional
  • Any entity employing one or more employees
How It’s Done
  • Purchase of Plan
  • Upload documents on vault
  • Filing of enrolment/registration application
  • Receipt of enrolment certificate
Documents Required
  • Name, Contact Number and Email Id of Stakeholder.
  • Self Attested PAN, Aadhar & Passport size photo of Stakeholder.
  • Specimen Signatures of Stakeholder.
  • Latest Electricity Bill/Landline Bill of Registered Office.
  • NOC from owner of registered office. (If Owned)
  • Rent Agreement from Landlord. (If Rented/Leased)
  • PAN, TAN, COI of the Business Entity
  • Cancelled Cheque in business name
Which states fall under Professional Tax?
Professional Tax Applicable in States
  1. Andhra Pradesh
  2. Assam
  3. Bihar
  4. Chattisgarh
  5. Gujarat
  6. Karnataka
  7. Kerala
  8. Madhya Pradesh
  9. Maharashtra
  10. Manipur
  11. Meghalaya
  12. Mizoram
  13. Orissa
  14. Puducherry
  15. Tamil Nadu
  16. Tripura
  17. West Bengal
Professional Tax Not Applicable in States
  1. Arunachal Pradesh
  2. Delhi
  3. Goa
  4. Haryana
  5. Himachal Pradesh
  6. Jammu & Kashmir
  7. Jharkhand
  8. Nagaland
  9. Punjab
  10. Rajasthan
  11. Sikkim
  12. Uttar Pradesh
  13. Uttaranchal
  14. Andaman & Nicobar
  15. Chandigarh
  16. Daman & Diu
  17. Dadra & Nagar Haveli
  18. Lakshadweep
What is Professional Tax and who Levies it?

The nomenclature ‘Professional tax’ could be one of those terms which do not completely convey the real meaning of the term. Unlike the name suggests, it is just not the tax levied only on professionals. It is a tax on all kinds of professions, trades, and employment and levied based on the income of such profession, trade and employment. It is levied on employees, a person carrying on business including freelancers, professionals, etc., subject to income exceeding the monetary threshold if any.

As per Article 246 of the Constitution of India, only Parliament has the exclusive power to make laws with respect to the Union List which includes taxes on income. The state has the power to make laws only with respect to the Concurrent and State list.

However, professional tax though is a kind of tax on income levied by State Government (not all states in the country chose to levy professional tax). The State Government is also empowered to make laws with respect to professional tax though being a tax on income under Article 276 of the Constitution of India which deals with tax on professions, trades, callings and employment.

It may be noted that professional tax is a deductible amount for the purpose of Income-tax Act, 1961 and can be deducted from taxable income.

Dual Registration and Separate Registration for Each State

An employer/professional must have dual registration. The two registrations required are:

  1. A) Professional Tax Registration Certificate to pay tax on trade or profession
  2. B) Professional Tax Enrollment Certificate to deduct such tax from the salaries, trade, etc.

For offices with multi-state presence, since the tax regimes vary in each state, a separate registration is required for each such office established under different State Legislations. Moreover, Registration Certificate has to be obtained by an employer within 30 days of the appointment of staff.

Deposit of Tax

Employer has employed  Make payment within
 More than 20 Employees 15 days from end of the month
 20 employees or less 15th of next month from the end of each quarter
 
Penalties for Non-Compliance:
 

While each state has the ability to fix penalty based on its own tax laws, the regime is generally centered around the following penalties:

 

Delay in  Non-Compliance Penalty levied by most states
 Registration Non-registration when the employer was liable to be registered Rs 5/Day
 Payment Non-payment of tax or payment after the due date. 10% of the Amount of Tax
 Filing of Return Non-filing of Tax Returns or delay in filing Rs 1000/ return delayed by 1 month
Rs 2000/return for a further delay.
 
Professional Tax Rate for Different States

Professional Tax or Profession Tax is levied by the State Government on the income of the assessee. Under Article 276 of the Indian Constitution, the state governments are empowered to decide the rate for the professional tax in the state. The maximum amount that can be charged under this tax regime is Rs. 2500. In a few states, this tax is even levied on the basis of source of income.

Professional Tax Rates in Andhra Pradesh
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 15,000 Nil
 Rs. 15,001 – Rs. 20,000/- Rs 150
Rs. 20, 001 or above Rs 200
 
Professional Tax Rates in Assam
Slab (Income Per Month) Amount (Per Month)
 Up to Rs.10,000/- Nil
Rs. 10,001 to  Rs. 15,000 Rs 175
Rs. 15,001 to Rs. 24,999/-Rs 180
Rs. 25,000 or above Rs. 208
 
Professional Tax Rates in Bihar
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 25,000/- Nil
Rs. 25,001 – Rs. 41,666 Rs. 83.33
Rs. 41,667 – Rs. 83,333/- Rs. 166.67
Rs. 83,333 – or above Rs. 208.33
 
Professional Tax Rates in Goa
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 15,000/- Nil
Rs. 15,001 – Rs.25,000/- Rs. 150
Rs. 25,001 or above Rs. 200
 
Professional Tax Rates in Gujarat
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 5,999/- Nil
Rs. 6,000 – Rs. 8,999 Rs. 80
Rs. 9,000 – Rs. 11,999/- Rs. 150
Rs.12,000 or above Rs. 200
 
Professional Tax Rates in Jharkhand
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 25,000/- Nil
Rs. 25,001 – Rs. 41,666/- Rs. 100
Rs. 41,667 – Rs. 66,666/- Rs. 150
Rs. 66,667 – Rs. 83,333/- Rs. 200
Rs. 83,334 – or above Rs. 208 (for first 11 months and Rs. 212 in last month)
 
Professional Tax Rates in Karnataka
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 15,000/- Nil
Rs. 15,001 or above Rs. 200
 
Professional Tax Rates in Kerala
Slab (Income Per Month) Amount (Per Month)
 Up to Rs. 1,999 Nil
 From Rs. 2,000 – Rs. 2,999 Rs. 20
 From Rs. 3,000 – Rs. 4,999 Rs. 30
 From Rs. 5,000 – Rs. 7,499 Rs. 50
 From Rs. 7,500 – Rs. 9,999 Rs. 75
 From Rs. 10,000 – Rs. 12,499 Rs. 100
 From Rs. 12,500 – Rs. 16,666 Rs. 125
 From Rs. 16,667 – Rs. 20,833 Rs. 166
 Rs. 20,834 or above Rs. 208
 
Professional Tax Rates in Madhya Pradesh
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 18,750/-  Nil
Rs. 18,751 – Rs. 25,000/- Rs. 125
 Rs. 25,001 – Rs. 33,333/- Rs. 167
 Rs. 33,334/- or above 208 (11 months) & 212 (12th month) 
 
Professional Tax Rates in Maharashtra
Slab (Income Per Month) Amount (Per Month)
 For Men Nil up to Rs. 7,500 
 From Rs. 7,500 – Rs. 10,000 Rs 175
 For Women Nil up to Rs. 10,000
 For all Above Rs. 10,000 Rs. 200 and Rs. 300 for the month of February 
 
Professional Tax Rates in Manipur
Slab (Income Per Month) Amount (Per Month)
 Up to Rs. 4,250/- Nil
From Rs. 4,251 – Rs. 6,250/- Rs. 100
From Rs. 6,251 – Rs. 8,333/- Rs. 167
 From Rs. 8,334 – Rs. 10,416/- Rs. 200
From Rs. 10,417 or aboveRs. 208 & Rs. 212
 
Professional Tax Rates in Meghalaya
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 4,166/- Nil
From Rs. 4,167 – Rs. 6,250/- Rs. 16.50
From Rs. 6,251 – Rs. 8,333/- Rs. 25
 From Rs. 8,334 – Rs. 12,500/- Rs. 41.50
From Rs. 12,501 – Rs. 16,666/- Rs. 62.50
From Rs. 16,667 – Rs. 20,833/- Rs. 83.33
 From Rs. 20,834 – Rs. 25,000/- Rs. 104.16
 From Rs. 25,001 – Rs. 29,166/- Rs. 125
 From Rs. 29,167 – Rs. 33,333/- Rs. 150
 From Rs. 33,334 – Rs. 37,500 Rs. 175
 From Rs. 37,501 – Rs. 41,666 Rs. 200
Above Rs. 41,667/- Rs. 208
 
Professional Tax Rates in Nagaland
 Slab (Income Per Month) Amount (Per Month)
Up to Rs. 4,000/- Nil
From Rs. 4,001 – Rs. 5,000/- Rs. 35
From Rs. 5,001 – Rs. 7,000/- Rs. 75
 From Rs. 7,001 – Rs. 9,000/- Rs. 110
From Rs. 9,001 – Rs. 12,000/- Rs. 180
From Rs. 12,001 or above Rs. 208
 From Rs. 25,001 – Rs. 29,166/- Rs. 125
 From Rs. 29,167 – Rs. 33,333/- Rs. 150
 From Rs. 33,334 – Rs. 37,500 Rs. 175
 From Rs. 37,501 – Rs. 41,666 Rs. 200
Above Rs. 41,667/- Rs. 208
 
Professional Tax Rates in Odisha
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 13,304/- Nil
 From Rs. 13,305 – Rs. 25,000/- Rs. 125
 From Rs. 25,001 or aboveRs. 200 (11 months) & Rs. 300 (12th month)
 From Rs. 15,001 – Rs. 25,000 Rs. 130
 From Rs. 25,001 – Rs. 40,000 Rs. 150
 Over and Above Rs. 40,000 Rs. 200
 
Professional Tax Rates in Puducherry
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 16,666/-  Nil
 From Rs. 16,667 – Rs. 33,333/- Rs. 41.66
 From Rs. 33,334 – Rs. 50,000/-Rs. 83.33
 From Rs. 50,001 – Rs. 66,666/- Rs. 125
 From Rs. 66,667 – Rs. 83,333 Rs. 166.67
Rs. 83,333 and above Rs. 208.33
 
Professional Tax Rates in Punjab
Slab (Income Per Month) Amount (Per Month)
Above Rs. 20,833/- Rs. 200
 
Professional Tax Rates in Sikkim
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 20,000/- Nil
 From Rs. 20,001 – Rs. 30,000/- Rs. 125
 From Rs. 30,001 – Rs. 40,000/- Rs. 150
Above Rs. 40,000 Rs. 200
 
Professional Tax Rates in Telangana
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 15,000/- Nil
 From Rs. 15,001 – Rs. 20,000/- Rs. 150
 From Rs. 20,001 – or above Rs. 200
 
Professional Tax Rates in Tripura
Slab (Income Per Month) Amount (Per Month)
Up to Rs. 7,500/- Nil
 From Rs. 7,501 – Rs. 15,000/- Rs. 150
Rs. 15,000 or above Rs. 208
 
Professional Tax Rates in West Bengal
Slab (Income Per Month) Amount (Per Month)
 Up to Rs. 8,500 Nil
 From Rs. 8,501 – Rs. 10,000 Rs. 90
 From Rs. 10,001 – Rs. 15,000 Rs. 110
 From Rs. 15,001 – Rs. 25,000 Rs. 130
 From Rs. 25,001 – Rs. 40,000 Rs. 150
 Over and Above Rs. 40,000 Rs. 200
 
Professional Tax Rates in Tamil Nadu
Slab (Income Per Month) Amount (Per Month)
 Up to Rs. 21,000 Nil
 From Rs. 21,001 – Rs. 30,000 Rs. 100
 From 30,001 – Rs. 45,000 Rs. 235
 From Rs. 40,001 – Rs. 60,000 Rs. 510
 From Rs. 60,001 – Rs. 75,000 Rs. 760
 From Rs. 75,001 and above  Rs. 1095

 

Similarly, there are different slabs and rates for the other states as well. For the month of February, the Professional Tax is a little higher than the rest of the eleven months in the year.

Who is responsible to collect and pay professional tax?
  • Professional tax is collected by the Commercial Tax Department. The commercial tax department of the respective states collect it which ultimately reaches the fund of municipality corporation.

    Persons responsible to pay professional tax
    •  In case of employees, an employer is a person responsible to deduct and pay professional tax to the State Government subject to the monetary threshold if any provided by respective State’s legislation. 
    • An employer (corporates, partnership firms, sole proprietorship, etc.) also being a person carrying on trade/profession is also required to pay professional tax on his trade/profession again subject to the monetary threshold if any provided by respective State’s legislation.
    • In such a case, the employer needs to register and obtain both a professional tax registration certificate to be able to pay professional tax on his trade/profession and professional tax enrolment certificate to be able to deduct the tax from his employees and pay. Further, separate registration may be required for each office depending on the respective State’s legislation.
    • Persons who are carrying on freelancing business without any employees are also required to register themselves subject to the monetary threshold if any, provided by the respective State’s legislation.
      However, a professional tax levy is subject to the exemption provided by the respective State to certain categories. For example, parents or guardian of any person who is suffering from mental retardation, blind persons are exempted among others from levy of Karnataka Professional tax.
What is the procedure to pay Professional Tax? Is any return to be filed?

This is again a State-specific query. However, in general, a professional tax may be paid either online/offline. Further, depending on the State’s requirement, professional tax returns also need to be filed at specified intervals.

Consequences of Violation of Professional Tax Regulation

While the actual amount of penalty or penal interest may depend on the respective State’s legislation, a penalty may be levied by all such states for not registering once professional tax legislation becomes applicable.

Further, there are also penalties for not making the payment within the due date and also failing to file the return within the specified due date.

For example: In the State of Maharashtra Rs 5/day is imposed as a penalty for delay in registration, Interest @ 1.25% per month of delay in payment, a penalty of 10% of the amount of tax in case of delay/non payment of professional tax, Rs 1000 – Rs 2000 penalty for delay in filing the return

Due Dates for Filing of Professional Tax Returns in India

In India, Professional Tax Payment Due Dates are listed by state, (List Cant Be Seen in Mobile)

 

Frequently Asked questions

1.What is professional tax and when is it levied?

Professional tax is a state level tax which is imposed on income earned by way of profession, trade, calling or employment. The tax is based on slabs depending upon income of individual who may be self employed or working as employee of an entity. At present the maximum tax that can be imposed is restricted to is Rs. 2,500/-.

2.Is there any exemption from PT payment?

Every state has its own governing provisions and exemption criteria. For example Karnataka PT act, has given exemption to certain persons from payment of PT. All charitable and philanthropic hospitals or nursing homes situated in places below the Taluk level in all districts of the State except Bangalore and Bangalore Rural District. Directors of Companies registered in Karnataka and nominated by the financing agencies owned or controlled by the State Government or by other statutory bodies. Foreign technicians employed in the State provided their appointments are approved by the Government of India for the purpose of exemption from payment of income tax for the said period ( exemption is for a period of 2 years from the date of their joining duty). Combatant and civilian non combatant members of the Armed Forces who are governed by the Army Act, the Navy Act and the Air Force Act. Salaried or wage earning blind persons. Salaried or wage earning deaf and dumb persons. Holders of permits of single taxi or single three wheeler goods vehicle. Institutes teaching Kannada or English Shorthand or Typewriting. A Physically handicapped person not less than 40% of permanent disability (subject to production of certificate from the HOD of Government Civil Hospital). An ex-serviceman not falling under Sl No.1 of the Schedule. A person having single child and who has undergone sterilization operation, subject to production of a certificate from the District Surgeon, Government Civil Hospital, for having undergone such operation. Central Para Military Force (CPMF) Personnel. Persons running educational institutions in respect of their branches teaching classes up to twelfth standard or pre-University Education. No tax is payable by persons who have attained age of sixty five years. Also no tax is payable for holding any Profession for less than 120 days in the year. Our experts will guide on on applicability of the provisions.

3.Is Professional tax imposed in every state in India?

Professional tax is imposed only in following States: Karnataka, Bihar, West Bengal, Andhra Pradesh, Telangana, Maharashtra, Tamilnadu, Gujarat, Assam, Kerala, Meghalaya, Odisha, Tripura, Madhya Pradesh, and Sikkim.

4.Can the professional tax liability amount be paid in lump sum?

In certain states there is concept of composition scheme. For e.g. in case of Maharashtra, the government announced composition scheme under which any person liable to make payment to government at rate of Rs. 2500 may make a lump sum payment in advance of Rs. 10,000 and his liability to pay for 5 years will be discharged.

5.What will be the other costs in the registration process?

The plan price covers all professional fees and convenience charge. Since Professional tax is state level tax the applicable govt. charges vary from state to state.Government charges will be charged on actual basis..

6.Which are the specific cities where the service will be delivered?

The service is state specific in case you need a shop license and will be rendered only in specific cities being Mumbai, Gurgaon, Hyderabad, Kolkata, Jaipur, Surat, Bangalore, Chandigarh, Pune and Delhi.

7.Who is responsible for deducting the tax and depositing the same with Government?

👉 In case of individuals who are self employed the tax has to be paid by the individual himself.

👉 In case of employed individuals, the liability is on the employer.

8.What is enrolment certificate and what is registration certificate?

Every employer in specific states is required to deduct taxes from salary when paid to one or more employees when payment made exceeds Rs.5,000/- (this limit is for Maharashtra) and deposit with state government. That entity is required to obtain registration certificate. When person is employed in profession by two or more employers and is getting salary/wages exceeding Rs.5,000/- but employer is not deducting professional tax then the individual needs to get enrolment certificate from authority.

FSSAI (Food License) Registration

An F.S.S.A.I. or food License Registration certificate is required to run a food product business. You have to register under India’s Food Safety and Standards Authority (F.S.S.A.I.) to deal in any kind of food product. F.S.S.A.I. regulates anything relating to the manufacture, distribution, and transport of food items. The food department is established under the Ministry of Health & Family Welfare, Government of India. The F.S.S.A.I. has been established under the Food Safety and Standards Act, 2006. F.S.S.A.I. Certificate and F.S.S.A.I. License are the same, ensuring the quality, purity and other vital factors the customers can rely upon.

A food license or FSSAI license is granted to all manufacturers, traders, restaurants carrying out any food business which may involve manufacturing or processing. On applying for FSSAI registration, a unique 14-digit license number is issued, which has to be quoted on all food packages. The license number is also required even if food products are not packaged. There are three levels of registrations.

👉 Basic Registration

👉 State Registration

👉 Central Registration

Services Covered
  • Drafting documents
  • Filing of forms with Authorities
  • Issue of ESI allotment letter
  • Documented Follow-up
  • Business hours -CA support
Who Should Buy
  • Any business entity or Individual working in Food & related sector
How It’s Done
  • Purchase of plan
  • Upload documents on Vault
  • Drafting of documents
  • Submission of documents and application with Department
  • Receipt of Registration letter
Documents Required
  • List of Partners, Owners, and Executive Members of Society with full address and contact details.
  • Latest Passport-sized photograph of the applicant
  • Identification proof (voter ID card or Aadhaar Card)
  • PAN Card
  • Address Proof which can be Telephone, Mobile Bill, Electricity or Gas Bill
  • A Copy of Property papers (if owned)
  • A Copy of Rent Agreement and Landlord’s NOC (if rented)
  • Partnership Deed/ MOA/AOA of the firm
  • A Copy of certificate obtained under the Co-Op Act – 1861/Multi State Co-Op Act – 2002 in the case of Co-Operatives.
  • NOC from the manufacturer (in case of Distributor)
  • Information on Source of raw material
  • NOCs from Municipality or local body
  • E-Code document issued by DGFT
  • Form IX Nomination of persons by a company
WHAT ARE THE ADVANTAGES OF OBTAINING FSSAI FOOD LICENSE?

👉 The food business can get several legal benefits

👉 Creates consumer awareness

👉 You can use FSSAI logo, which can build a goodwill among the customers.

👉 Set down science-based principles

👉 Regulate manufacture, storage, distribution, sale and import of food

👉 To facilitate food safety

👉 The research and development sector is responsible to maintain the safety.

👉 New guidelines are introduced which are compatible with international organization

👉 Set up evidence proof studies for building policies.

👉 There is a huge chance of business expansion.

Why It’s Important to Take FSSAI Registration?

The first and foremost thing is it is mandatory to have the FSSAI license. Apart from that, there are a few other reasons why having the FSSAI license is important. Have a look below to learn in-depth.

  • Since food can directly impact consumers’ health, it is always one of the most subtle subjects for business. That is the distinct reason why the Food Safety and Standard Authority India maintains strict policies related to food safety. So, whenever a food business operator (FBO) has the license, they need to abide by the regulatory policies.
  • At the time of registration of the FSSAI license, government authority proceeds through a verification of the food; hence when one gets the license for the food products, the product becomes much trustworthy to its customer base.
  • The purpose of the food license is to chemically test the food produced by a particular organization so that if any adulteration made to the food does not impact the consumers’ health. As we all know, the food business is already susceptible to too many allegations of adulterations. Therefore, when you have the FSSAI license, you are supposed to get free from this type of accusation.
  • Having the permit can aid you in the marketing of your food product as well. Since you can directly use the FSSAI logo and license number in food packages, your brand becomes much more trustworthy about standards and quality.
  • Lastly, the penalties for not having the FSSAI license while running a food business are much higher than actually the cost of getting the license. Therefore it will always be the wisest choice to have an FSSAI license when you are operating a food business in India.
WHAT ARE THE TYPES OF FSSAI LICENSE?
Basic License

If the annual turnover of a food business is below Rs. 12 lakh, then basic registration of food licensing is required.Dairy having capacity less than 500 litres per day or daily manufacturing capacity less than 100kg per day needs to get basic FSSAI registration. Basic registration includes a wide range of businesses starting from small pan shops, tea stalls, home-based food operators, small warehouses, canteen’s, mid-day meal services and food processors. The maximum tenure of this license is five years, and the minimum is one year.

State License

Suppose the annual turnover of the food business is more than Rs. 12 lakhs and less than Rs. 20 crores, then one has to get a state FSSAI License.

Manufacturing units having capacity up to 2 MT per day, Dairy units handling business up to 50000 litres per day, 3-star hotels and above, repackages and relabeling units, clubs canteens, all the catering business irrespective of their turnover needs to apply for a State license. The maximum tenure of this license is 5 years, and the minimum is 1 year.

Central License

If the annual turnover of the food business is more than Rs. 20 Crores, then a central FSSAI License is required.

The importer and exporters mandatorily need a central license. In case you are in a business having multiple outlets across the country. You need to go for a central license for your registered address and get basic state or central licenses depending on the turnover of each outlet. The maximum tenure of this license is 5 years, and the minimum is 1 year.

Eligibility of Food License Registration

The eligibility criteria for which type of registration has been listed as follows:

Basic FSSAI License

FBOs that have a yearly turnover anywhere within in Rs.12 lakh are required to apply for a Basic Food Registration.

These hold all small scale operators, which are working from and within a single area, region, city or town have to be registered under FSSAI as Basic FBO. This sort of Basic certificate has to be applied to the State where the business is based. The terms for eligibility to Basic certificate are as follows:

  • FBO likes a wholesaler, distributor, supplier, and retailer, food vending establishments, hawkers, club, canteen, Dhaba, hotel, restaurants, and storage with an annual turnover of less than Rs. 12 lakh.
  • Retailers selling food items with limited operations.
  • Petty producers manufacturing by itself.
  • A makeshift stall selling food products.
  • Businesses involved in selling food at a social or religious gathering, other than a caterer.
  • Cottage industries associated with food products.
  • Production or processing units of vegetable oil by the process of solvent extraction and refineries including oil expeller system. With a capacity to provide not more than 100 kg/litre per day (except milk or meat).
  • Dairy units, involved in procurement/collection/handling/chilling of milk, having a capacity of not more than 500 liters per day, or up to 2.5 Metric Ton of milk solids annually.
  • A slaughtering capacity of not more than 2 large animals or 10 small animals or 50 poultry birds per day.
State FSSAI License

The necessary criteria for applying for a State Food License is that the annual turnover of your business is dropping somewhere between Rs. 12 lakh up to a maximum of Rs. 20 crores. You require to apply for FSSAI State License to the state government where your business is based in. The rules directing this license are:

  • FBO likes supplier, wholesaler, distributor, retailer, food vending establishments or Dhaba, club, canteen and restaurants with an annual turnover of within Rs. 12 lakh to up to Rs. 20 crores.
  • Proprietary Foods
  • Production and processing units of vegetable oil by the process of solvent extraction and refineries including oil expeller unit. With a turnover within Rs. 12 lacs to Rs. 20 crores annually.
  • Hotels of 4-star ratings or less
  • Storages having a capacity of less than 50,000 metric tonnes yearly.
  • Dairy Units including milk chilling units, with a daily limit to handle or process, among 500 to 50000 litres.
  • A daily slaughtering capacity of more than 2 and up to 50 large animals. Or the capacity of handling more than 10 and up to 150 small animals. Or daily capacity of more than 50 to up to 1000 poultry birds.
  • All food processing units including re-packers, with a daily capacity of not less than 100 kg/litre to up to 2 metric tonnes.
Central FSSAI License

The first state to become eligible for a Central FSSAI Registration is that the yearly turnover is over Rs. 20 crores. The Central Government is to be applied for this license. Besides this basic rule, there are some other factors to be considered. Such as 100% export oriented units, importers, operators linked with the Central Government and related agencies. The FBOs having more than one branch of restaurants or food joints require to apply for a Central Food License. FBOs operating in 2 or more states have to apply for one Central License for its Registered Head Office and separate license or registration for all branches as per the eligibility standards applicable to them. Following Food Businesses require to apply for FSSAI central license by the governing authority:

  • FBO’s like Restaurants, Retailers, Distributors and Suppliers with an Annual Turnover of more than Rs. 20 crore.
  • Manufacturing and processing units of vegetable oil by the method of solvent extraction and factories including oil expeller unit, with a capacity of over 2 metric tonnes per day.
  • Dhaba, club, canteen, and other food vending establishments with branches spread in more than one state and an annual turnover of more than Rs. 12 lakh.
  • Wholesalers that have an annual turnover of not less than Rs. 30 crores.
  • Hotels that have been rated 5-star or more.
  • 100 % export oriented units involved in food production or processing.
  • Every Importer including the import of food ingredients or additives.
  • Caterers working under Central Government or related agencies such as Railways, Airlines and airport, Seaport, Defence, etc.
  • Storages with a capacity of more than 50,000 metric tonnes,
  • Dairy Units (including chilling units), with a capacity to handle or process, over 50,000 litres per day,
  • A slaughtering capacity of over 50 large animals or more than 150 small animals or more than 1000 poultry birds per day,
  • All food processing units including re-packers and excluding the grains, pulses & cereals milling units with a capacity of over 2 metric tonnes per day.
  • All FBOs involved in producing an item of food, additive or its ingredient, using some new process or technology, and/or a combination thereof, whose safety has not been established yet by the FSSAI. Or they may not have a history of safe usage. It covers the food articles being introduced in the country, for the first time.
Documents required for Food License
Basic FSSAI License
  • Declaration form
  • Authority letter
  • Copy of the property paper (if owned)
  • Copy of Rent Agreement (If rented property)
  • License or plan of the food safety management system
  • Electricity bill or water bill of business place
  • Identification proof of proprietor or partners or directors like Aadhar Card, or Voter ID card
  • Form 10 for the designation of persons by a company with the board resolution.
State FSSAI License
  • List of Partners, Owners, and Executive Members of Society with full address and contact details.
  • Latest Passport-sized photograph of the applicant
  • Identification proof (voter ID card or Aadhaar Card)
  • PAN Card
  • Address Proof which can be Telephone, Mobile Bill, Electricity or Gas Bill
  • A Copy of Property papers (if owned)
  • A Copy of Rent Agreement and Landlord’s NOC (if rented)
  • Partnership Deed/ MOA/AOA of the firm
  • A Copy of certificate obtained under the Co-Op Act – 1861/Multi State Co-Op Act – 2002 in the case of Co-Operatives.
  • NOC from the manufacturer (in case of Distributor)
  • Information on Source of raw material
  • NOCs from Municipality or local body
  • E-Code document issued by DGFT
  • Form IX Nomination of persons by a company
Central FSSAI License
  •  Declaration Form of FSSAI license
  •  If applicable a copy of certificate received below the Coop Act – 1861 / Multi-State Coop Act – 2002 in case of Cooperatives.
  • Completed and signed Form- B by the Partner, Authorized Signatory or Proprietor.
  • List and name of machinery and equipment alongside the quantity, installed capacity and horsepower applied. It is compulsory for production and manufacturing units only.
  • DGFT issues a document of the IE code.
  • Proof of turnover in supporting the documentary.
  • NOC from the local body or Municipality. It’s an optional document.
  • The certificate is given by the Ministry of Tourism (Hotel & Restaurant Approval and Classification Committee). In the case of hotels its Mandatory document.
  • PA/NOC documents circulated by FSSAI.
  • Copy of License from the manufacturer. Along with this the NOC of the same. This Compulsory for Repackers and Relabellers.
  • Proof of possession of premises -Sale deed, Rental Agreement or Electricity Bill, it’s optional.
  • List of Partner, Directors, Executive Members of Society, Proprietor, Trust with complete address and contact details. It is Necessary for Companies only.
  • Review report Chemical & Bacteriological of water to be applied as an ingredient in food from a verified or public health laboratory to verify the portability. It’s Necessary for manufacturing and processing units.
  • Listing of the food category wanted to be manufactured it’s for manufactures.
  •  Certificate of Food Safety Management System Plan ( FSMSP) if required.
  • Documentary evidence of turnover or self-declaration of a number of vehicles. It’s a compulsory document for Transporters.
List of food business falling under the purview of Central Licensing Authority (schedule 1 of FSS Regulations, 2011)
  • Dairy units along with milk chilling units can handle the processing of more than 50,000 liters of liquid milk per day or 2500 metric tons of solid milk annually.
  • Vegetable oil-producing or processing units that process vegetable oil through the solvent extraction process and refineries having a capacity of more than 2 metric tons per day.
  • Slaughterhouses that are equipped to slaughter more than 50 large animals or a minimum of 150 small animals are also covered under Schedule 1 of FSSAI Regulations, 2011.
  • Meat processing units can process more than 500 kg of meat per day or 150 metric tons of meat per annum.
  • Except for the units mentioned in I and IV, all other food processing units having types of machinery such as relabelled and repackers with a capacity of 2 metric tons per day except grains, cereals, and pulses milling units.
  • Businesses that import food items or food ingredients and additives for commercial uses.
  • Food business operators who manufacture food items, ingredients, or substances or use certain processing technologies to process or both whose safety is not established by these regulations or don’t have a history of safe use or introduced in the country are also covered under schedule 1.
S. NoConditionCentral FSSAI LicensesState FSSAI Licenses
1If Operation of business in more than one stateCentral License for Head OfficeState License for other offices if others conditions also fulfiled
2Dairy units including milk chilling units equipped to handle or processmore than 50,000 litres of liquid milk/day or 2500 MT of milk solid per annum.upto 50,000 litres of liquid milk/day or 2500 MT of milk solid per annum.
3Vegetable oil processing units and units producing vegetable oil by the process of solvent extraction and refineries including oil expeller unit installed capacity more than 2 MT per day. installed capacity upto 2 MT per day.
4slaughter houses equipped to slaughtermore than 50 large animals or 150 or more small animals including sheep and goats or 1000 or more poultry birds per day.upto 50 large animals or upto 150  small animals including sheep and goats or upto 1000  poultry birds per day.
5Meat processing units equipped to handle or processmore than 500 kg of meat per day or 150 MT per annumupto 500 kg of meat per day or 150 MT per annum
6All food processing units other than mentioned under (2) to (5) including relabellers and repackersinstalled capacity more than 2 MT/day except grains, cereals and pulses milling units.installed capacity upto 2 MT/day except grains, cereals and pulses milling units.
7100 % Export Oriented Units.AllNA
8Importers importing food items including food ingredients and additives for commercial use.AllNA
9Food catering services in establishments and units under Central government Agencies like Railways, Air and airport, Seaport, Defence etc.AllNA
10Hotelswith 5 star and above accreditation.Below 5 Star
11All E-commerce food businesses.AllNA
12Proprietary FoodsAllNA
13Storage (Other than atmosphere controlled or cold)Capacity more than 50,000MTCapacity upto 50,000MT
14Storage (Cold/ Refrigerated)Capacity more than 10,000MTCapacity upto 10,000MT
15Storage (Cold+ controlled atmosphere)Capacity more than 1,000MTCapacity upto 1,000MT
16WholesalerTO greater than 30 CroresTO Upto 30 Crores
17RetailerTO greater than 20 CroresTO Upto 20 Crores
18Distributor/ Supplier/ caterer/ restaurantTO greater than 20 CroresTO Upto 20 Crores
19TransporterHaving more than 100 Wagons/ vehicles or TO above 30 CroresHaving Upto 100 Wagons/ vehicles or TO Upto 30 Crores
20MarketerTO greater than 20 CroresTO Upto 20 Crores
21Storage/ wholesaler/ retailer / DistributorPremises in Central Govt AgenciesNA
22Foot cateringAirport/ SeaportsNA
Results Of Non-compliance of FSSAI License

Under the FSSAI, any licensed or registered individual has to adhere to the FSS Act’s regulations, 2006. The Officer in charge of food safety generally controls the inspection of the FBOs facility & identifies the compliance level under the regulation by maintaining a checklist. On the basis of compliance level, the officer in charge of food safety spots it as:

  • Non-compliance (NC)
  • Compliance (C)
  • Partial compliance (PC)
  • Not applicable/Not observed (NA)

On the basis of the above subject, an up-gradation notice can be issued anytime if it’s required as per Sec 32 under the FSSAI Act, 2006. The license may be canceled if the business organization breaks the Compliance related to the improvement notice. Any FBO affronted by the notice may appeal to the State Commissioner of Food Safety even though the decision will be taken by the Honourable High Court or Food safety tribunal.

Penalties Related To The Non-Compliance with FSSAI Act, 2006:

Penalties associated with the Non-compliance are listed below:

Sl. NoParticularsPenalties
1Quality of the Food not associated with the Compliance under the Act2 Lakh Petty manufacturer – 25,000/-
2Misbranded Food3 Lakh
3Degrade Food standard5 Lakh
4Misleading advertisement & false information10 Lakh
5Fails to comply with direction of the Food safety officer2 Lakh
6Extraneous food matter1 Lakh
7Unhygienic manufacturers or processings1 Lakh
FSSAI License Renewal

The FSSAI license is effective in commencing the business dealing with food products; likewise, the renewal of the license is an essential factor in operating the business without complexities. 

The validity of the issued license is for 1 or 5 years, so the business must apply for the license renewal 30 days in advance before the expiry of the current license. FSSAI has initiated an online application FLRS- Food Licensing and Registration System. So businesses dealing with the food market can register for licenses using the online platform.

The FLRS is functional in 5 Regional Offices for the certification of entitlements & licenses.
  • Eastern Region – Kolkata
  • Northern Region -New Delhi
  • Western Region – Mumbai and Kerala
  • North Eastern Region – Guwahati
  • Southern Region – Chennai

Anyway, folks, now we have come to the end of the conversation about FSSAI registration and types of FSSAI registration. However, we have already shared all the necessary details you require to get yourself the FSSAI license. If you need further info to talk to expert professionals. Keep following our blogs to keep yourself updated with the latest tax compliance changes news.

Important Points
  • The most important thing about the FSSAI License, if it takes more than 60 days, the applicant can start without the license without waiting for further processing.
  • To protect and enhance the quality and hygiene of food, huge changes have been brought by the Food Safety & Standards Act, 2006. As per the act, it is necessary to get an FSSAI Registration and license for a person to start a food business.
  • Thus FSSAI license is needed for all activities linking to the manufacture, process, storage, packaging, and distribution of food.
  •  FSSAI License or Restaurant License is a legal responsibility that is compulsory for every Food Business Operators.
  • The Name defined in the application Form (A or B) will be the name on the Food License Certificate. So make sure it is clearly and accurately spelled.
  • You will receive all further communication on the mobile number and e-mail ID supplied in the Application Form. Make sure these are working.
  • After applying, a unique reference ID will be generated. This ID will be used during all further communications and processes for obtaining the FSSAI certificate.
  • If the operations of the FBO, e.g. a restaurant or hotel, expand to more than one state, a Central FSSAI license has to be procured for the main Branch/Head Office. And a State License or Basic Registration for each branch, as per their eligibility.
  • The Central License Certificate will be issued to the importers only on the address mentioned on their Import Export Code (IEC).
  • A single unit needs a single certificate only. Whether it is handling/producing different varieties or various processes. Just make sure that the Form (A or B) includes all the Food Items and the Processes.

Frequently Asked Questions on FSSAI

Who requires a FSSAI License?

All the Food Business Owners operating in India need to get registered. FBOs with a turnover of more than 12lac p.a need to get registered and licensed. Businesses like hotels, café, packaged food fall under the FSSAI license scheme. The detailed list of businesses that need a license is mentioned in detail under Schedule1 of FSS act 2011.

What food license do I need?

If you are a Food Business Operator then you will need FSSAI registration and license.

Is the Fssai license mandatory?

YES, an FSSAI license is mandatory, for running a food business in India. All the FBOs must obtain a 14-digit license number which is printed on their food products.

What are the different categories of license issued by Fssai?

There are three Categories of FSSAI/ Food Licence, depending upon the turnover of the Food Business Operator.

  1. FSSAI Basic License.
    2. FSSAI State License.
    3. FSSAI Central License.
How much does a FSSAI License Cost?

FSSAI license cost differs from category to category. Schedule 3 of FSS act 2006 gives a detailed fee structure.
You have to pay depending on the category you fall in. The category is based on your turnover, type of business, and assets generated from the business.

  1. For Registration- 1799
    2. For Central – 7500
    3. For State- 7500

Schedule 3 gives a more detailed fee structure.

Note: The requirement of the FSSAI license for registration, center, and state differs depending on the revenue you generate. Also if your turnover is up to 12 lakhs, p.a, then you need to have an FSSAI registration license only and the registration fee for Petty FBO is Rupees 100. The requirement of the FSSAI license for registration, center, and state differs depending on the revenue you generate. Also if your turnover is up to 12 lakhs, p.a, then you need to have an FSSAI registration license only and the registration fee for Petty FBO is Rupees 100.

Is it easy to get a FSSAI License?

Yes, it is easy to get an FSSAI license provided you follow all the procedures and present all the required documents when needed. Though the decision of approving the request for registration and licensing is solely in the hands of the FSSAI officials, you only have to make sure that you comply with the pre-defined set rules and standards to get the license.

How much time will it take to get a FSSAI License?

You will get your FSSAI license within 30 days of filling out your application and submitting the required fee, and you will receive the notification for inspection by the officer within 7 days of your registration. A basic registration license takes up to 7-10 days.

How can I pay the FSSAI Fee?

There are two modes of payment of the fee:-
A.    You can follow the online payment method on the registration portal and opt for payment through a debit card or other options available.
B.    You can also pay through the treasury challan from the treasury office or CSC center. In the case of state or central registration, you need to get the treasury challan signed by the senior officer at the treasury office.

How can I get a FSSAI License online?

To get the FSSAI license you need to go to https://foodlicensing.fssai.gov.in/index.aspx and log in or sign up to your account. Fill up Form A and Form B, and present the required document along with the fee.

When FSSAI is required?

FSSAI is required when you want to enter the food business market of India as a Food Business Operator.

Why is FSSAI License required?

FSSAI license is important for any food business operator operating in India. It is meant for regulating the food business sector and maintaining a standard quality throughout the country. FSSAI license and FSSAI Registration is a legal approval that you can operate your food business or sell your edible item in India, as you have surpassed the requirements set in FSS Act 2006. It increases the credibility of the business and makes sure the set standards are maintained.

RCMC – Registration cum Membership Certificate

It’s obvious, registering your business under multiple authorities has its own benefits. The same stands true about obtaining the Registration Cum Membership Certificate (RCMC). The RCMC certificate authenticates an exporter who deals with products registered with an agency or authority of the government. The certificate is valid for five years. The RCMC is granted by any of the three bodies of Foreign Trade Policy i.e. an Export Promotion Council (EPC)/ Development Authority/ Commodity Board  or any other competent authority.

These bodies are authorised to act as Registering Authorities by the DGFT (Director General of Foreign Trade). There are currently 35 organisations that act as Registering Authorities. Exporters are compulsorily required to register with EPC citing their main line of business.

27 Export Promotion Councils
6 Commodity Boards
2 Development Authorities

RCMC is issued as a certificate proving that any particular exporter is registered with the relevant authority. It is a certificate issued by Export Promotional Councils or Commodity Board of India to authorize an exporter to export/import and avail various benefits under the Foreign Trade Policy. The sole purpose of these bodies maximize the growth exporters. They are divided into different sectors, each one responsible for a particular group of products.

Documents Required

👉 Copy of the Partnership Deed in case of a Partnership Firm.

👉 Copy of the COI, MOA and AOA in case of a Company.

👉 Copy of the Trust Deed in case of a Trust.

👉 Details of the names, residential addresses, contact numbers and other relevant details of the Partners/Directors, as the case may be.

👉 For the manufacturing segment, copy of proof that the applicant is a manufacturer (SSI Registration, SIA Certification).

👉 Preceding year’s export turnover figure certified by a Chartered Accountant is mandatory.

👉 In the case of no exports, NIL certificate to be obtained.

👉 Annual Membership Fees applicable to be paid via Demand Draft or Cheque payable, drawn in favor of “Electronics and Computer Software Export Promotion Council” payable at New Delhi.

Apply RCMC Certification Online Now
RCMC is necessary to avail the following benefits

👉 Authorization to export or import any item.

👉 Benefits and concessions under the FTP including –

  1. a) Advanced License.
  2. b) Duty Drawback Scheme.
  3. c) Deemed Export Benefit.
  4. d) Duty-Free Import Authorization (DFIA) Scheme.
  5. e) RODTEP Scheme.
  6. f) Zero duty Export Promotion Capital Goods (EPCG) scheme.
  7. g) Any other licenses to import or export.
  8. h) At the time of export, no need for a Bank Guarantee.
  9. i) Access to Trade Fairs and Catalogue Shows in India and abroad.
  10. j) Access through foreign companies to buyer-seller matching.
   Registration Procedure of RCMC

Form ANF – 2C is the application form that needs to be filled in and submitted with the ESC. It will comprise of the following details:-

  1. Name and Address of the concerned Export Promotion Council.
  2. Name of the Applicant.
  3. Registered Office Address of the Applicant.
  4. Name and Address of branches (if any).
  5. Import Export Code number and details.
  6. Export House Certificate number.
  7. Product for which registration is sought.
  8. Declare the main line of business.
Documents to be Submitted along with RCMC Registration Form

👉 Copy of the Partnership Deed in case of a Partnership Firm.

👉 Copy of the COI, MOA and AOA in case of a Company.

👉 Copy of the Trust Deed in case of a Trust.

👉 Details of the names, residential addresses, contact numbers and other relevant details of the Partners/Directors, as the case may be.

👉 For the manufacturing segment, copy of proof that the applicant is a manufacturer (SSI Registration, SIA Certification).

👉 Self-attested copy of the Import Export Code issued by the DGFT.👉 Preceding year’s export turnover figure certified by a Chartered Accountant is mandatory.

👉 In the case of no exports, NIL certificate to be obtained.

👉 Annual Membership Fees applicable to be paid via Demand Draft or Cheque payable, drawn in favor of “Electronics and Computer Software Export Promotion Council” payable at New Delhi.

Under Which EPC/ Commodity Board The Exporter Has To Register?
For whom is it mandatory for getting an RCMC certificate?

As per the Export-Import Policy of India, any person or firm, or company must hold an RCMC Certificate if it wants to apply for export permission must use. One may also apply for a certificate/ license to import or wishes to avail various benefits or concessions under Foreign Trade Policy like duty credit scripts, duty drawback, etc.

Export Promotion Councils (EPCs)/Commodity Boards are exporters set up to promote and develop Indian exports. Each Council/Board is responsible for fostering a particular group of products/ projects/services as given in Appendix 2T of Appendices and Aayat Niryat Forms (AANF). EPCs/Commodity Boards are also eligible to function as Registering Authorities which are notified by DGFT to issue Registration-cum-Membership Certificate (RCMC) to its members. There are 28 Export promotion councils and nine commodities boards in India.

Each of the EPC & commodities boards in India categories itself according to the type of products; for example, Council for Leather Exports is responsible for looking after the exports of Leather and Leather products. An exporter shall apply to the EPC/Commodity Board according to his main line of business to obtain RCMC. Further, in case the product line of the exporter does not fall under any category, he might apply for RCMC from FIEO.

How to Apply for RCMC License in India?

A duly filled application with the Export Promotional Council (EPC) will be filed using Form ANF 2C. The exporter can be registered under two categories; Merchant exporter and Manufacturing Exporter. If an exporter chooses the option of manufacturing exporter, he will have to submit proof of that.

Further, the following points may be helpful to the exporter regarding RCMC registration:

👉 While applying for RCMC, an exporter has to declare his main line of business. The RCMC should be obtained from the Export Promotional Council, based on the line of business. e.g. In case, if an exporter is dealing in coconut, he will fall under Coconut Development Board and apply for RCMC.

👉 In case an export product is not covered by export promotional council/Commodity Board etc. RCMC, in such a case, shall be obtained from FIEO (Federation of Indian Exporters Organisation).

👉 In case of multi-product exporters not registered with any EPC, or where the line of business is yet to be settled, then the exporter shall have an option to obtain RCMC from FIEO.

👉 For Multiple product exporters having their head office/ registered office in north-eastern states, RCMC may be obtained from Shellac and Forest Products Export Promotional Council (except for the product looked after by APEDA, Spices Board and Tea board).

👉 In case of exporters of handicrafts and handloom products from the state of Jammu and Kashmir, Director, Handicrafts, Government of Jammu & Kashmir is authorized to issue Registration Cum Membership Certificates (RCMC).

👉 Prospective / potential exporters may also, on application, register and become an associate member of an EPC.

Registration Cum-Membership Certificate (RCMC)

Registration-Cum-Membership Certificate (RCMC) means a certificate of registration and membership granted by an Export Promotion Council/ Commodity Board/ Development Authority or other competent authority as prescribed in FTP or Handbook of Procedures. There are 37 such Promotion Councils/Board/Authority that is authorized to issue RCMC.

A Person Applying For

(a) An Authorisation to import/export (except items) listed as Restricted items in ITC(HS)or

(b) Any other benefit or concession under FTP must furnish or upload complete information in the importer-exporter profile on DGFT’s website the RCMC granted by a competent authority by the procedure specified in HBP unless exempted explicitly under FTP. Certificate of Registration as Exporter of Spices(CRES) issued by ‘Spices board’ will be considered as RCMC under Foreign Trade Policy.

Procedures

An exporter engaged in export business can become a member of Export Promotion Councils/Board/Authority. The prospective members must apply the prescribed application form with the prescribed fee to the concerned Promotion council/ Board/ Authority. The RCMC can be issued as a merchant exporter, manufacturer exporter or merchant-cum-manufacturer exporter as per the document submitted. Now online registration procedure for RCMC is also available on the concerned export promotion council/board/authority web page.

How & Where We Assist You

👉 Preparation and filing of application with the concerned Export Promotion Council/Commodity Board/Development Authority or other competent authority.

RCMC Fees Chart for Different Sectors  Where exporter can register to get RCMC certificate?
  1. FIEO (Federation of Indian Exporters Organizations Or a concerned Export Promotion Council is authorized to issue RCMC(Registration cum Membership Certificate).
  2. Different Export Promotion councils are responsible for issuing RCMC Certificates about different product export/imports. Central Government has so far authorized 26 EPC and 9 Commodities Boards in India. These Institutions hold the authority to issue RCMC to a particular exporter.
  3. Each Export Promotion Council and Commodities board has been categorized according to the product they promote.
  4. However, if any Export Promotion Council does not cover any export product, you can obtain an RCMC Certificate from FIEO(Federation of Indian Export Organization) regarding the product thereof.
  5. Exporters of multi-product having a head office /registered office in north-eastern states, RCMC Certificate in respect of Export of forest produce and their value-added product shall be issued by Shellac and Forest Products Export Promotion Council known as SHEFEXIL.( except for the product covered by APEDA, spice board, and tea board).
  6. Electronic and Computer Software EPC is responsible for issuing RCMC Certificate to Software Exporters.
  7. As per the listing of Handbook of Procedures, Exporters of 14 Services shall register themselves with services EPC.
  8. Exporters of services other than listed in the Handbook or Procedures must register with FIEO.

  Membership of FIEO

👉 A status holder means an exporter having a recognition certificate issued by the DGFT as Star Trading House/ Premier Trading House/Export House/ Star Export House may approach FIEO to obtain RCMC Certificate.

👉 If any EPC does not cover the products/services exported by Exporters dealing in multiple items can register with FIEO & can obtain an RCMC Certificate under the Multi-Products Group Category of FIEO.

👉  FIEO: India’s apex body of all export promotion organizations offers double advantages to the registered exporters as they get entitled to all the benefits under the Foreign Trade Policy and the services and global reach of FIEO.

👉 Suppose an exporter is not willing to register for RCMC Certificate. In that case, he/she is also eligible to get enrolled as a member of FIEO under the individual Exporter Category and avail of FIEO’s services.

  Registration Process

An application using the form ANF shall be filed with the concerned Export Promotional Council. Registration can be filed under two categories

  1. Merchant Exporter.
  2. Manufacturing Exporter.

If an exporter files a registration application as a Manufacturer exporter, he requires furnishing evidence to that effect. Prospective and potential exporters can also Register to become associate members of EPC,

As per the Handbook of Procedures, an applicant is required to file an application in a specified format carrying the following documents along with.

  • Application Form for Registration-cum-Membership, with the mention and specification of the product for which the registration is been sought.
  • A self-attested copy of the Importer Exporter Code Number, obtained from the concerned licensing authority.
  • A certificate issued by Bank certifying the applicant’s financial soundness.
  • If registration is sought as a manufacturer exporter then SSI/IEM certificate is mandatory.
  • A declaration in respect of the exports and imports effected during the preceding financial year.
  • If the application is filed by is a company then submitting the Memorandum of Association and partnership deed in case of Partnership firms is mandatory.

Sl. 

 Entity Type

 Amount (Rs.)

 1

 Individual Exporter

Rs. 6,250/-

 2

 Multi-Products Group

Rs. 6,250/- 

 3

 Service Providers

 Rs. 6,250/-

 4

 FTZ units/ EOUs

 Rs. 9,375/-

 5

 One Star Export House

 Rs. 9,375/-

 6

 Two Star Export House

 Rs. 12,500/-

 7

 Three Star Export House

 Rs. 25,000/-

 8

 Four Star Export House

 Rs. 50,000/-

 9

 Five Star Export House

 Rs. 93,750/-

 10

 State Export Organization

 Rs. 6,250/-

 Knowledge Base: Terms of Validity

The RCMC Certificate is issued for the term of 5 years. The validity of the RCMC Certificate shall remain for 5(Five) years, beginning from 1st April just like financial year of the licensing year in which it was issued and ending on 31st March of the 5th year unless otherwise is specified.

Compliance Furnishing Report

Registered exporters must furnish quarterly returns and details of their exports to the concerned EPC. However, the status holder provides only the quarterly returns in a specified format.

Change in Constitution

Within one month, changes in personal particulars like name, constitution, ownership or address of an RCMC Certificate holder, it is obligatory on their part to intimate such changes to the concerned authority. The registering authority can consider a genuine reason for the delay if an applicant submits necessary evidence well justifying the delay.

De-Registration

In case of violation of conditions of registration, registering authority may de-register an RCMC Certificate holder before de-registration defaulters are served with SCN & are asked for a fair chance for hearing.

Appeal against De-registration

An aggrieved party has s right to appeal to DGFT (Directorate General of Foreign Trade) or other designated authority against the action of de-registration within days from the decision of de-registration appellate authority shall be binding.

  FAQ for Membership:
Q1. What is Export Promotion Council for Handicrafts (EPCH)?

EPCH was established under the Companies Act in the year 1986-87 as a non-profit organisation. EPCH works with the object to promote, support, protect, maintain and increase the export of handicrafts.

Q2. How to obtain membership of the Council?

Any person, H.U.F, firm or association of person, joint-stock company or other corporation or a co-operative society engaged in the export of Handicrafts can become a member. The prospective members must apply on the prescribed application form by paying Rs. 100/-. The entrance fee in the year of Enrollment is Rs. 2500/- and the Annual memberships fee is Rs. 5000/- (Total Rs.7500+ GST Applicable (18%) = Rs.8850/-).

BANK DETAILS  
Export Promotion Council for Handicrafts
Beneficiary Address:   EPCH House,  Pocket 6&7, Sector-C, L.S.C., Vasant Kunj, New Delhi-110070
BANK:   PUNJAB NATIONAL BANK
BRANCH: MAHIPALPUR, NEW DELHI-110037
ACCOUNT NO. 00291010002970
IFSC CODE NO:   PUNB0002910

Membership of the Council is a pre-condition for obtaining (RCMC) under Foreign Trade Policy. The RCMC can be obtained either as a ‘Merchant Exporter’, ‘Manufacturer Exporter’ or ‘Merchant-cum-Manufacturer Exporters’ as per documents submitted.
Annual Subscription is Rs. 5000/-+ 18% GST = (total Rs.5900/-).

Q3. What is the mandatory document for EPCH’s Registration?

Importer Exporter Code issued by DGFT office is the mandatory document for issuing Registration certificate under Foreign Trade Policy.

Q4. Is there any option to apply for Membership through online as well as offline?

Yes. There are options to apply online, which is available through the EPCH web portal www.epch.in Apply for Membership-How to apply. Also, you can get an application form on payment of Rs.100/- from EPCH New Delhi and all regional offices.

Q5. How much time does it take to become the registered member of the Council?

After receiving the application with supporting documents, membership and Registration-cum-Membership certificate will be issued within 30 days maximum.

Q6. Are, there any other offices of EPCH?

Yes, EPCH has its Regional offices/Representative offices at Moradabad, Kolkata Bangalore, Jaipur, Jodhpur, Mumbai, Guwahati, Narsapur, Saharanpur, Common Facility Centre at Saharanpur and extension counter at Agra.

Q7. What are the services being provided to its members by the Council?

The services of Export Promotion Council for Handicrafts to its members are as follows:

👉 Providing commercially useful information and assistance to members in developing and increasing exports.

👉 Offering professional advice and services to members in areas of technology up gradation, quality and design improvement, standards and specifications, product development, innovation etc.

👉 Organizing visits of delegation of its members abroad to explore overseas market opportunities.

👉 Participating in specialized International Trade Fairs of handicrafts & gifts. 

👉 Organizing Indian Handicrafts and Gifts Fair in India

👉   Interaction between exporting community and Govt. both at the Central and State level and represents in almost all the committees / panels of Central and State.

👉 To create an environment of awareness through Workshops on “Export Marketing, Procedures and Documentation”, Packaging, Design Development, Buyer Seller Meet, Open House etc. interaction with Central and State Govt. and various other similar programs.

👉 The activities of the EPCH, notification of Govt. orders, information on Trade Fairs and other relevant information is disseminated through its journal CRAFTCIL.

👉 Also can get financial benefit by participating in Council’s led activities i.e; International fairs/Exhibitions, BSMS etc;  under Market Development Assistance(MDA) as well as Market Access Initiative Scheme.

👉 Duty free Import Certification, subject to application in the prescribed format with the requisite documents as given at  http://www.epch.in/policies/DFIC-Procedure.pdf

👉 Duty draw back & other benefits/incentives announced in Foreign Trade Policies from time to time for the handicraft sector. http://www.epch.in/index.php?option=com_content&view=article&id=51&Itemid=169

👉 Certification of Handicrafts items, subject to application in the prescribed format with the requisite documents as given at  http://www.epch.in/policies/Application&requirement.pdf

👉 CITES approved Vriksh Certificate www.vrikshindia.in

👉 Visa recommendation letter, subject to required documents.

Q8. Can we apply online for Membership?

Yes, You can apply for online Membership through the EPCH website https://www.epch.in/ Member Section-Membership/ Registration (One time process & can make online payment also).

Q9. Can we get Membership Certificate & RCMC certificate online?

No, Membership/Registration Certificate will be dispatched by Registered Post.

Q10. Is export performance is required for becoming member of the Council?

Exporters having nil export performance in handicrafts can also enrol as a member of the Council

Q11. Any other mandatory document for issuing Membership?

Code of conduct as given can be downloaded and submitted on a minimum of Rs.10/- stamp paper with signature and stamp.

Q12. Whether membership fee is for one time?

Please note that Entrance Fees are one-time Membership fees paid annually, which will be due at the beginning of the financial year and paid by 30th June.

Q13. Can in house publication be subscribed?

Yes. To obtain an in-house journal, i.e. CRAFTCIL, to know about the general nature of the handicraft sector, an interested person can subscribe on payment of Rs.1000/- + 18% GST (April-March) along with the complete address and contact details. Please note such subscribers cannot participate in Council’s activities.

Q 14. Whether membership and Registration-cum-Membership-Certificate are two different documents?

Yes, these two are different documents for licensing. Membership is for an exporter as per membership guidelines, M.O.A & A.O.A. of the said Council. At the same time, RCMC is issued by the Council as per Foreign Trade Policy. Both are subject to requisite documents.

Q15. Whether there is a separate fee for the RCMC?

No, there is no separate fee for obtaining Registration-cum-Membership-Certificate (RCMC)

16. Whether membership is compulsory for obtaining RCMC and issued on yearly basis?

Yes, it is mandatory to obtain membership with the Council to obtain RCMC. It is renewed every year by payment of annual subscription fees.