Employees’ Provident Fund Organisation
(Ministry of Labour, Govt. Of India)
Bhavishya Nidhi Bhawan, 14- Bhikaiji Cama Place, New Delhi – 110066



Dated: 16/05/2017

All Additional Central P.F. Commissioners,
All Regional P.F. Commissioner-I,
All Regional P.F. Commissioner-II,

Sub:- Compliance regime for Start-ups-regarding.


Please find enclosed herewith a copy of DO letter No. Z-13025/39/2015- LR Cell dated 06.04,2017 received from Shri Heeralal Samariya, Addlitional Secretary, Ministry of Labour & Employment, New Delhi on the above cited subject.

In terms of directions contained therein for the purpose of EPF & MP Act, 1952, all concerned are required to adhere to the directions mentioned in the said letter.

Yours faithfully,

(S.C. Goyal)
Addl. Central P.F. Commissioner-II (CAIU)

Copy to:-

PS to CPFC w.r.t. diary No.114819 dated 12.04.2017 for information.

Heeralal Samariya, IAS
Additional Secretary
Tel: 011-23710178
Fax: 011-23736011
E-mail: [email protected]


NEW DELHI-110119

D.O. NO. Z-13025/39/2015-LR Cell
Dated the 6th April 2017


As you are aware, Government of India has launched the Start-up India Action Plan for promoting the Start-Up ecosystem in the country to incentivize the entrepreneurs in setting up new start-up ventures and thus catalyze the creation of employment opportunities through them. In this connection, various incentives and ease in regulatory compliance provisions have been conceptualized. Start-ups are defined by Department of Industrial Policy & Promotion (DIPP), as an entity, incorporated or registered in India not prior to five years, with annual  turnover not exceeding- Rs. 25 crores in any preceding financial year, working towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property.

2. Earlier, this Ministry had issued on 12.01.2016, an advisory to all States/UTs ad Central Labour Enforcement Agencies for regulating the Labour Laws Inspection System in case of Start-Ups allowing them for self-certify compliance with certain Labour Laws for three  years. The Labour Laws to be covered under this are:-

(1) The Industrial Disputes Act, 1947

(2) The Trade Unions Act, 1926

(3) The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996

(4) The Industrial Employment (Standing Orders) Act, 1946

(5) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

(6) The Payment of Gratuity Act, 1972

(7) The Contract Labour (Regulation and Abolition) Act, 1970

(8) The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

(9) The Employees’ State Insurance Act, 1948

3. The matter has been reconsidered in the Ministry and it has been now decided to extend this self-certificate compliance regime for Start-ups to five years. In view of this, Government/Central  Labour Enforcement Agencies are advised that:

(i). For  the first year of setting up of the Start-ups such establishments may not be inspected under any of the 6 Labour laws (viz. BoCW Act, ISMW Act, Payment of Gratuity Act, Contract Labour Act, EPF Act and ESI Act). These start-ups may be asked to submit an online self-declaration instead.

(ii). Start-ups may be allowed to subinit self-certified returns (as is being done under Shram Suvidha Portal under these Acts for the Central sphere) under aforesaid Acts. From the second year onwards, unto five year from the setting up of the unit, such Start-ups may be taken up for inspection only when very credible and verifiable complaint of violation is filed in writing and the approval has been obtained from at least one level senior to the inspecting officer or from the Central Analysis and Intelligence Unit (CAIU), as the case may be.

4. You are requested to direct the concerned Departments in your State/UT to regulate the inspections in the Start-ups, as suggested above, wherever applicable. For submitting self-certification online, the Shram Suvidha Portal of Government of India may be used. Action taken in the matter may also be intimated to this Ministry.

With regards

Yours sincerely,

(Heeralal Samariya)

As per list enclosed.

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