GST registration is mandatory for companies with turnover ₹50 lakhs per annum and above. Learn about GST registration for one person company.
There are so many organisations that have registered and have migrated to GST. A fair few are yet to register under it, however. The enrollment of any business entity has an identity assigned: the GST number. It is a 15-digit number that is unique to each GST-registered taxpayer. Enrollment in the GST Law requires obtaining a unique GST number from the appropriate tax authority in order to collect taxes on behalf of the government and claim an Input Tax Credit for taxes paid on inbound supplies.
We’ll walk you through the process of GST registration for an OPC in this article.
In the Companies Act of 2013, a new concept of the OPC was introduced (OPC). A minimum of two directors and two members are required in a private company. In contrast, a minimum of three directors and seven members are necessary for a public company. Previously, a single person could not form a corporation. A one-person company (OPC) is a business formed by a single individual.
A single person could not form a company prior to implementing the Companies Act of 2013. Suppose a person wanted to start a business. In that case, they could only do so as a sole proprietorship because forming a company required a minimum of two directors and two members. A business can be formed with just one director and one member, according to Section 2(62) of the Company’s Act 2013. It is a type of corporation with fewer compliance requirements than a private corporation.
According to the Companies Act of 2013, a participant can form a company with just one member and one director. The director and member can be the same person. As a result, a one-person company means that a single individual, whether a resident or an NRI, can incorporate a business that combines the features of a corporation with the advantages of a sole proprietorship.
Documents Required for GST Registration for OPC:
Persons or entities applying for registering GST must submit the following documents :
- Company’s PAN card copy
- Company registration certificate
- Memorandum of Association /Articles of Association
- PAN card, photo and aadhar card of all directors
- Bank details – a copy of the cancelled cheque or bank statement
- Proof of appointment of authorised signatory- letter of authorisation
- Proof of address for the primary and secondary places of business
- Copy of electricity bill/landline bill/water bill/municipal khata copy/property tax receipt from your own office
- In the case of a rented office, the owner’s no-objection certificate (NOC) is required.
The Process of GST Registration for OPC :
To reap the benefits of the input tax credit, any company, firm, or individual that buys, sells, or provides services must register under the Goods and Services Tax (GST). Moreover, GST registration is online at www.gst.gov.in, where a Temporary Reference Number (TRN) is generated for the application.
- Login to the GST online portal.
- Fill up form part-A PAN, Mobile No, e-mail
- The portal affirms your detail by OTP or e-mail
- Upload required documents
- Access and fill in part B and use the received number
- You shall get the application reference number(ARN)
- The GST officer would start verifying your documents
- The GST officer would either rejects or accepts your application within seven working days
- In case further proofs or clarifications are required, one must provide the same.
- After all the clarifications, the GSTN number shall be allotted to you.
Before registering, you can calculate how much GST you owe using our GST calculator in India
Timelines for OPC Registration
The DSC and DIN proposed directors can be obtained in 1 day. An OPC’s Certificate of Incorporation is issued in 3-5 days. Incorporating an OPC takes about ten days, pertaining to departmental acceptance and revert from the relevant department.
Get in touch with the experts at Vakilsearch to ensure you do it right.
