EPFO Instructions regarding PF Inspection of Start-ups (Promotion of Start-Up Ecosystem in India)
In response to the initiatives of the Ministry of Labour & Employment, Govt. of India, regarding promotion of Start-Up Ecosystem in India, the EPFO has come out out with certain support measures for the Start-ups by way of regulated PF Inspections, as the following directions, vide EPFO Instructions Circular No. C-III/011 /03(30)2016 /DL/D.O/Start-ups/22 dt. 21.01.2016, have been issued to all EPF Offices:
a. For the first year of setting up of the Start-ups, such establishments may not be inspected under EPF & MP Act, 1952. These Start-ups may be asked to submit an online self-declaration instead.
b. Start-Ups are allowed to submit self-certified returns under EPF & MP Act, 1952. From the second year on wards, up to three year from the setting up of the unit, such Start-Ups may be taken up for inspection only when very credible and verifiable complaints of violation is filed in writing and the approval has been obtained from the Central Analysis and Intelligence Unit (CAIU).
Accordingly, all EPF offices are expected to regulate the PF inspections in the Start-ups, as suggested above, wherever applicable. For submitting self-certification online, the Shram Suvidha Portal of Government of India may be used by the Start-ups.