ESI has notified that it has been brought to the notice from various Regional Offices/Sub Regional Offices that some MCA registered employers who had registered with Zero number of employees have informed that dormant option is not reflecting in their employer id and therefore unable to exercise this option on the employer’s portal.
A dormant company cannot avail exemption from employer obligations under ESI Act if dormant option is not reflecting in their employer id.
ESI has therefore clarified that the Companies registered in ESIC through MCA portal have to declare the status of the company within six month of registration to avoid defaulter action. Before the end of the ‘Inactive” mode, the company can further extend the Inactive mode for six months and continue to extend in similar manner as per the status of the company.
