Definition of ESI code activation

• ESI code activation refers to the formal approval and operational enabling of the Employer’s Registration Number issued under the Employees’ State Insurance scheme.
  
• After an establishment completes the initial registration, a 17-digit unique ESI code number is assigned.
  
• This code must be activated by the ESIC authority before the employer can start filing returns and paying contributions.
  
• Activation confirms that the establishment is officially covered under the ESIC Act.
  
• Without activation, the employer cannot register employees or make statutory payments.
  

When activation is required

• Immediately after completing the online employer registration process.
  
• When a new branch or sub-unit is registered under an existing principal employer.
  
• During migration to a new location or region, requiring separate coverage.
  
• If the previous code was cancelled and a fresh registration was required.
  
• Upon receiving a show cause or inspection notice and fulfilling compliance conditions.
  

Steps involved in ESI code activation

• Submit digitally signed registration details and relevant establishment documents online.
  
• Wait for verification by the ESIC regional or sub-regional office.
  
• Respond to any queries or objections raised during the verification process.
  
• Once approved, the system marks the code as “Active.”
  
• The employer can then proceed to register employees and generate challans.
  

Documents required for activation

• PAN of the establishment or employer.
  
• Address proof of the business premises.
  
• Proof of identity of the owner or authorized signatory.
  
• Details of employees such as wage records and date of joining.
  
• Bank details for future benefit and contribution processing.
  

Post-activation responsibilities

• Begin monthly contribution filings through the activated ESI code.
  
• Register all eligible employees and generate their IP numbers.
  
• Ensure timely payments and submission of returns to avoid penalties.
  
• Display ESIC coverage information at the workplace as mandated.
  
• Maintain accurate records of employee registration and contributions under the activated code.