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ARTICLE · 02 FEBRUARY 2016

Labour Reforms For Indian Start-Ups – EPFO Shows The Way

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This Circular, further to the Ministry of Labour and Employment (Ministry) direction dated 12 January 2016 (Direction), is aimed at incentivising start-ups by easing their compliance requirements.

IndiaCorporate/Commercial Law
Anshul Prakash
Anshul Prakash
Abhishek Thanvi
Abhishek Thanvi
Sagar BM
Sagar BM
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Introduction

The Employees Provident Fund Organisation (EPFO) has issued a circular dated 21 January 2016 (Circular) exempting start-ups from inspection under the Employees' Provident Funds and Miscellaneous & Provisions Act, 1952 and also permitting start-ups to submit self-certified returns.

This Circular, further to the Ministry of Labour and Employment (Ministry) direction dated 12 January 2016 (Direction), is aimed at incentivising start-ups by easing their compliance requirements.

Who can benefit from the Circular?

The Circular is applicable only in respect of "start-ups" which have been defined as: "entities incorporated or registered in India not prior to five years, with annual turnover not exceeding INR 25 Crores in any preceding financial year working towards innovation, development, deployment or commercialisation of new products, processes or services driven by technology or intellectual property".

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