It had been mandatory for all the companies to register under the EPFO. This helps the government in ensuring that the benefits are being delivered to employees. The process of registration of the new company was really long and it required a lot of paperwork.
The employer had to fill Form 5A and the employer had to submit this form to the EPFO office along with other documents. There were many hurdles in the process and it was not as simple as it sounds in theory.
New Procedure for Paperless Registration
In last few years, the focus of the government had been on the digitalization and hence the registration process for new companies has also been digitalized. It is now possible to submit Form 5A through the online portal and the provision for e-signature is also available now.
As per one of the source, the move is going to benefits lakhs of the organization in the coming year and it will certainly add to ease of doing business. Another addition to the process is the way dues were cleared by the employer earlier. This service is now available online and the employer can clear the dues with help of the online payment.
The major advantage of this new provision is that it will reduce the paperwork and it will also help the employer in saving many visits to the regional Employee Provident Fund Organization’s office. This is beneficial for the government as well as employers.
All these factors are certainly contributing towards the development of the nation and it is also improving India’s rank on the index of ease of doing business. The move is not only going to benefit the Indian companies but it also has the potential to attract more of foreign investment in India.