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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Sunrise Textiles Pvt Ltd in Surat has 25 employees, each earning wages of Rs 18,000 per month. The HR manager wants to know which of the following is true about its Employees' Provident Fund registration under the EPF Scheme, as taught for the CS Executive paper.

Sunrise Textiles must register for EPF because the scheme applies to establishments with 20 or more employees, and it has 25. The higher figure of 100 employees is not the coverage threshold, and registration is not optional once the threshold is met.

  1. AEPF coverage applies to an establishment engaging 20 or more employees, so the company must registerCorrect
  2. BEPF coverage applies only if the establishment has at least 100 employees
  3. CEPF registration is optional for all companies regardless of headcount
  4. DEPF registration is needed only for factories, not for companies in trading or services

Explanation

The EPF scheme applies to establishments employing 20 or more persons. Sunrise has 25 employees, so registration is required. The 100-employee threshold is wrong because it is not the coverage threshold for the general EPF applicability.

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