Provident fund is a social security system that was introduced for the purpose of encouraging savings among employees, so as to benefit them during the course of their retirement. Contributions are made by the employer and the employee on a monthly basis.PF return must be filed by entities having PF registration. PF registration is mandatory for all employers having 20 or more employees at any time during a year. In some cases, it may be required if the employee count exceeds 10 employees.
Any entity, be it a government office, public sector or private sector entity which has 20 or more employees needs to get registered with the PF Department.
Usually the entire process takes a weeks time. Depending on the work load with government department the process might take longer time.
The limit of 20 includes all permanent, semi permanent and other contract employees like housekeeping, security or other contractual workers in the business.