Section 3 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 3 of the Code on Social Security, 2020 requires every establishment to which the Code applies to be registered electronically or otherwise, avoids duplicate registration for establishments already registered under another Central labour law, and lets an establishment in closure ask for cancellation. The Central Rules, 2026 supply the procedure in rule 5.
Every establishment to which the Code applies must be registered, electronically or otherwise, within the time and in the manner the Central Government prescribes. An establishment already registered under any other Central labour law need not register again; that registration is deemed to be registration under the Code. An establishment under Chapter III or IV whose business is in the process of closure may apply for cancellation. Under rule 5 of the Central Rules, a complete application gets a certificate within seven days, failing which registration is deemed granted.
What section 3 says
| Sub-section | Rule |
|---|---|
| 3(1) | Every establishment to which the Code applies must be registered, electronically or otherwise, within the time and in the manner prescribed by the Central Government |
| Proviso | An establishment already registered under any other Central labour law for the time being in force need not obtain registration again; that registration is deemed to be registration for the purposes of the Code |
| 3(2) | An establishment to which Chapter III or Chapter IV applies and whose business activities are in the process of closure may apply for cancellation of the registration granted under the section |
| 3(3) | The manner of application, conditions and procedure for cancellation are as the Central Government prescribes |
Which establishments the Code "applies" to depends on the Chapter thresholds in the First Schedule and on the definition of establishment; see sections 1 and 164 and our article on the establishment definition. If you are unsure whether a unit needs a fresh registration or can rely on an existing one, our ESI and PF registration team can check.
No second registration
The proviso is a simplification: a unit that already holds a registration under another Central labour law is not asked to register again. The Code does not list those laws in s.3. Rule 5(3) adds that such an employer must update the particulars on the Shram Suvidha Portal within the period prescribed under the Occupational Safety, Health and Working Conditions Code, 2020.
Rule 5 of the Central Rules, 2026: how it works
Rule 5 of the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026) applies where the Central Government is the appropriate Government. Where the State Government is, the State's own rules apply.
| Step | Rule 5 |
|---|---|
| Application | An employer seeking registration for an establishment not already registered applies electronically in Form-I of the Occupational Safety, Health and Working Conditions (Central) Rules, 2026, on the Shram Suvidha Portal, with details and documents including proof of identity and address. That form is the common form for registration under these rules (5(1)(a) and Explanation) |
| Signing and accuracy | Signed digitally or as the portal requires; the applicant is responsible for the veracity of the information (5(1)(b), (c)) |
| Verification | The establishment's PAN allotted under the Income Tax Act 2025, or another unique number under any law, may be verified online (5(1)(d)) |
| Certificate | Issued electronically in Form-III of the OSH Central Rules, 2026 if the application is complete, not later than seven days from submission of the complete application, failing which the establishment is deemed registered and the certificate is auto-generated (5(1)(e)) |
| Exception | In exceptional circumstances the Central Government may, by notification and for a specified period, dispense with electronic registration for an establishment or class (proviso to 5(1)(e)) |
| Non-compliance | The authorised officer directs the employer to comply within the time stated (5(2)) |
| Existing registrants | Update particulars on the portal within the period prescribed under the OSH Code (5(3)) |
| Wrong information | Registration obtained by wrong information is liable to cancellation after a thirty-day show-cause opportunity (5(4)) |
| Quote the number | The registration number must be quoted on all documents and correspondence connected with the Code, schemes, rules or regulations (5(5)) |
| Changes | Update changes in Form-I particulars on the portal within thirty days (5(6)) |
| Display | A copy of the certificate is displayed at conspicuous places in the premises where work is carried out (5(9)) |
The rule is covered in more detail in our article on rule 5.
Cancellation on closure: s.3(2), (3) and rule 5(7) to (8)
Only establishments under Chapter III (EPF) or Chapter IV (ESI) whose business is in closure can apply for cancellation under s.3(2). Rule 5(7) lets the employer of an establishment to which the Code applies and whose business is in the process of closure apply online in the specified form on the Shram Suvidha Portal, after giving complete details and the status of contribution and other dues. Rule 5(8) then provides:
- the application is allowed after the particulars are verified in the manner the Central Government specifies;
- no application is entertained unless the employer has furnished all returns, paid all dues under the Code and submitted a self-certification to that effect with the application; and
- the application must be decided within ninety days of receipt of the complete application.
Example. A manufacturing unit registered under the Code winds up operations. It cannot simply stop filing. To cancel, it must first file all pending returns, clear dues, and submit a self-certification with the online application. If the authority does not act, the Code and rules set a ninety-day period for decision, counted from a complete application.
Need help registering or closing out?
Registration, updates within thirty days and closure certificates all depend on having the right returns and dues cleared. Our ESI and PF registration team can help you prepare the portal application or the closure file. Bring your existing registrations and a statement of dues.
Key takeaways
- Every establishment to which the Code applies must register, electronically or otherwise, within the prescribed time.
- Existing registration under another Central labour law is deemed registration under the Code; update portal particulars.
- Under rule 5, a complete application gets a certificate in seven days, or deemed registration.
- Changes in particulars must be updated within thirty days.
- Cancellation for closure needs all returns filed, all dues paid, a self-certification, and is decided within ninety days of a complete application.
Read next
- Sections 1 and 164: commencement and repeal of nine Acts
- Rule 5: registration of establishments under the Central Rules
- Sections 4 and 5: Central Board and ESIC
- How to register for PF and ESI
Disclaimer: Based on the Code on Social Security, 2020 (as enacted) and, where noted, the Code on Social Security (Central) Rules, 2026 (G.S.R. 344(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.