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Closing a Business: Close or Deactivate Your PF Code

By Kusum · Reviewed by Harish, Labour Consultant, Delhi on · Updated

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Independent guide by India Customer Care. We are not EPFO. Use only the official EPFO portals and the UMANG app for your account, and never share your password or OTP with anyone.

On this page
  1. Which situation?
  2. Closure at a glance
  3. Sources

A PF code is not closed just because headcount falls or you stop filing. When the business actually closes, pay all dues up to the last wage month, mark the date of exit for every employee, approve pending KYC and claims, and inform the regional office in writing with proof of closure. EPFO verifies and then records the establishment as closed.

Which situation?

Business closed for good

  1. File the ECR and pay for the last month of wages.
  2. Mark the date of exit for all employees on the employer portal.
  3. Approve pending KYC, transfers and claims so employees can get their money.
  4. Write to the regional office with proof of closure (for example closure under company law, cancellation of GST or trade licence, last payroll) and ask for the establishment to be recorded as closed.
  5. Keep records for future scrutiny.

Temporarily no work or no employees

Tell the regional office in writing that operations are suspended and from when, so the gap is not treated as default. Resume monthly returns when employees return.

Headcount fell below 20

Coverage continues. Keep filing and paying. See coverage.

Closure at a glance

  1. Pay dues to the last wage month
  2. Mark exits; clear pending approvals
  3. Letter to the regional office with closure proof
  4. EPFO verifies, may inspect
  5. Establishment recorded as closed
EmployerEPFO

Closing does not cancel past dues. Interest, damages and arrears found later can still be recovered from the employer and the persons responsible.

Sources