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Anil Gupta
Delhi
PF for new company
Hi I am looking forward to start my LLP company in Indore (MP) with capital of Rs. 40000. Will hire 2 guys @ 15000/ P.M. Would like to know the following: 1) Do I need to deduct and deposit PF for the same and how much? 2) What is the threshold of number of employees under my case above which I need to deduct PF for employees?
Asked 10 years ago in Business Law
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4 Answers
Dear Querist
You should contact a lawyer personally, you can easily bear the consultation fee
provident fund act 1952 is applicable in case number of employees are more than 20. since number of employees would be only two provisions of act would not be applicable .
section 1(3) of employees provident fund act provides that
it applies -
(a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are
employed and
(b) to any other establishment employing twenty or more persons or class of such establishments which the Central Government may,
by notification in the Official Gazette, specify, in this behalf:
Provided that the Central Government may, after giving not less than two months? notice of its intention so to do, by notification in the
Official Gazette, apply the provisions of this Act to any establishment employing such number of persons less than twenty as may be
specified in the notification.
You do not need to deduct PF. As per employee provident fund act, minimum twenty employees are needed for deducting the PF.
