Possibility of ESIC Registration Cancellation

• Yes, ESIC registration can be cancelled under specific conditions.
  
• Cancellation is allowed when an establishment no longer meets the applicability criteria.
  
• It applies if the number of employees falls permanently below the threshold.
  
• It may also be applicable in case of business closure or transfer.
  
• Proper documentation and verification are required to process the cancellation.
  

Conditions Eligible for Cancellation

• The business has closed operations permanently.
  
• The number of employees has been consistently below 10 or as per state-specific threshold.
  
• There are no employees drawing wages within the ESIC limit.
  
• The establishment has merged or been taken over by another entity.
  
• There is no further activity that attracts ESIC obligations.
  

Steps to Apply for Cancellation

• Draft a request letter on official letterhead stating the reason for cancellation.
  
• Include the ESIC registration code, date of closure or change, and supporting details.
  
• Attach documents like closure certificate, wage register, and employee exit details.
  
• Submit the application to the concerned ESIC regional or sub-regional office.
  
• Follow up regularly for acknowledgment and final approval.
  

Verification by ESIC Authorities

• The department may conduct a physical inspection to confirm the request.
  
• Officials may ask for wage records and attendance registers for recent months.
  
• A report is prepared verifying the eligibility for cancellation.
  
• If approved, the registration is deactivated in the system.
  
• An official intimation or letter of cancellation is issued to the employer.
  

Post-Cancellation Responsibilities

• The employer must ensure all pending returns and contributions are cleared.
  
• Maintain records of final return and cancellation approval for future reference.
  
• Inform contractors, vendors, or authorities of the cancellation where required.
  
• Avoid future filings or payments unless ESIC re-registration becomes necessary.
  
• Any future changes in eligibility must be reported immediately if operations restart.