Understanding the Need for Closure Reporting

• Reporting closure is a legal obligation under the ESIC Act.
  
• It stops further contribution liability after cessation of operations.
  
• Prevents accumulation of penalties or notices post-closure.
  
• Ensures formal deactivation of the employer code.
  
• Allows proper record closure in ESIC systems.
  

Required Documents for Closure

• Formal closure letter on company letterhead stating reasons.
  
• Copy of resolution or board decision approving business closure.
  
• Last contribution challan and return filed.
  
• Attendance register and wage sheet for the final working month.
  
• Proof of cancellation of factory/shop license, if applicable.
  

Procedure for Submitting Closure Request

• Prepare and compile closure documents duly signed and sealed.
  
• Submit the request physically or through the regional office.
  
• Mention employer code, establishment details, and final working date.
  
• Request confirmation of deactivation or code suspension in writing.
  
• Keep an acknowledgment copy of the submitted application.
  

Verification and Follow-Up

• ESIC may conduct an inspection or verification of closure status.
  
• Officers may request additional documents to verify shutdown.
  
• Final dues or discrepancies, if any, must be settled before closure.
  
• Maintain communication until official closure confirmation is received.
  
• Follow up with the branch office to ensure status update.
  

Post-Closure Responsibilities

• Preserve all ESIC records for future reference or audit.
  
• Ensure that all employee benefits and dues are cleared before closure.
  
• Inform employees officially about the termination of coverage.
  
• Close bank mandates linked with ESIC contributions.
  
• Avoid reuse of employer code or sub-codes in the future.