Any business body that enrols in GST is assigned a unique identifier: the GST number. It is a unique fifteen-digit number assigned to each taxpayer who has registered for GST. If a one-person company wants to profit from GST, it can voluntarily register for GST. Furthermore, One Person Companies must obtain GST Registration if they match the qualifying criteria outlined in the GST Rules and Regulations. This post will go through the essentials of GST Registration for a One Person Company in India.

GST Registration for an OPC in India

Before the implementation of the Companies Act of 2013, a single individual could not create a business. Assume someone wanted to establish a business. They could only do it as a single proprietorship in such circumstances since founding a corporation required at least two directors & 2 members. According to Section 2(62) of the Company's Act (2013), an OPC can be founded with just 1 director and 1 member. It is a corporation that has fewer compliance obligations than a private corporation.

A new idea of the OPC was established in the Companies Act of 2013. (OPC). A private business must have at least two directors and two members. A public corporation, on the other hand, requires a minimum of 3 directors & 7 members. A single individual could not previously start a corporation. A one-person company (OPC) is a firm founded by a single person.

What is a One-Person Company Registration?

A one-person company or OPC is a firm with only one proprietor. Before the Companies Act of 2013, only two persons could start a corporation. If a person wanted to create a business, they could only do it as a sole proprietorship or as a Private Limited Company, because a company could only be formed with at least two directors and two members. However, under the Companies Act of 2013, a new idea of One Person Company Registration was created.

According to the new idea of the Companies Act of 2013, a firm can be formed as a One Person Company under Section 2(62) of the Companies Act of 2013. It is a company with fewer compliance requirements than a private limited company creation.

Understanding the Concept of GST Registration for OPC

GST is an abbreviation for Goods & Services Tax. It is a system of indirect taxation that includes all taxes, such as sales tax, service tax, excise duty, and so on. The GST is an internet taxing system, and so is the GST registration procedure.

When the GST was adopted on July 1, 2017, several OPC Companies relocated or registered for OPC GST Registration. GST Registration refers to the online procedure of registering for the GST Regime. OPC can voluntarily register for GST or, if specific eligibility requirements are met, it must register for GST.

Applicability of GST Registration for OPC

Assume that the provision of goods & services occurs across the state, independent of yearly turnover. A one-person corporation must register for GST in this scenario. GST registration is essential and is divided into 5 simple steps for easier understanding.

Criteria for Turnover

GST registration is required for the provision of products or services with an annual turnover of more than 20 lakhs in the case of services & 40 lakhs in the case of commodities.

Supply from Outside the State

A one-person firm must register for GST if they offer products or services over state lines, regardless of their yearly sales. For example, if an OPC registered in Ahmedabad delivers items to Punjab, GST registration is necessary.

Existing VAT, service tax, and excise registration

To enrol for GST Registration, an existing OPC or One-Person Company with a service tax / VAT / Excise registration is necessary. For GST migration, the GST administration first gave a provisional ID & password.

E-commerce Retailer

OPC Companies that sell products or services through an e-commerce platform must register for GST. For example, an OPC firm selling items on e-commerce platforms in India must file for GST.

Person Who Is a Casual Taxpayer

A casual taxable person only offers products or services on occasion and does not have a daily place of business. A temporary food booth or a fireworks store put up during the Diwali celebration might be considered a casual taxable person.

Compulsory Conditions Required for an OPC Registration

• One individual can only use OPC.
• An OPC must have a nominee who is a natural person.
• If the OPC's paid-up capital or turnover surpasses 50 lakhs or 2 crores, it must change to a private or public company.
• Before 2 years have elapsed from the date of establishment, the OPC cannot freely change itself into a public or private business.

The Process of GST Registration for an OPC

To take benefit of the input tax credit, any company, organisation, or individual that purchases sell, or delivers services must register with the Goods and Services Tax (GST). Furthermore, GST registration may be completed online at www.gst.gov.in, where a Temporary Reference Number is assigned to the applicant.

• Access the GST online site
• Fill out form part-A with your PAN, mobile number, and email address.
• The site confirms your information by OTP or e-mail.
• Upload any necessary paperwork.
• Access and complete Part B, then enter the received number.
• You will be given a reference number for your application (ARN)
• Your documents would be verified by the GST officer.
• Within seven working days, the GST officer will either reject or approve your application.
• If more evidence or explanations are requested, these must be provided.
• The GSTN number will be assigned to you after all of the necessary explanations.
• Documents Required for GST Registration for an OPC
• Copies of the company's PAN cards
• Certificate of incorporation
• Articles of Association/Memorandum of Association
• All directors must have a PAN card, a picture, and an Aadhar card.
• Bank information - a copy of a cancelled cheque or a bank statement
• Letter of authorization as proof of appointment of authorised person
• Proof of address for primary and secondary business locations
• Copy of your own office's power bill/landline bill/water bill/municipal khata copy/property tax receipt
• The owner's no-objection certificate is necessary in the case of a rented office.

Need for Digital Signature Certificate for GST Registration

The OPC Company is not the same as the director. Because a corporation is a fictitious legal body, it must choose someone to manage GST registration. A company director may sign the GST Registration application on their behalf. The director's digital signature certificate must be filed for the GST registration form.

Timeline for OPC Registration

The suggested DSC and DIN directors may be achieved in one day. The Incorporation Certificate of an OPC is granted in 3-5 days. An OPC registration takes roughly ten days, including departmental approval and a response from the relevant department.

OPC Registration Process

Apply for Name Approval

The first step in an OPC registration is to choose a name for the company. The company's name will be "FGH (OPC) Private Limited." In the Form SPICe+ 32 application, the name might be authorised. In the Form SPICe+ 32 application, only one preferred name and the significance of preserving that name can be provided. If the name is rejected, a separate name can be presented by submitting a new Form SPICe+ 32 application.

We will proceed to the following step once the MCA has authorised the name.

Apply for DSC

The second step is to get the suggested Director's Digital Signature Certificate (DSC), which requires the following documents:

• Proof of address 
• Aadhaar card 
• PAN card 
• Photo 
• Email Id 
• Phone number

Apply for DIN

Once the Digital Signature Certificate is created, the next step is to apply for the proposed Director Identification Number (DIN) in SPICe Form, along with the director's name and address evidence. Form DIR-3 is only available to established businesses. It implies that beginning in January 2018, the applicant will no longer need to complete Form DIR-3 individually. DIN can now be used in the SPICe form for a maximum of three directors.

Documents Needed

We must compile the following documents, which must be presented to the ROC:

• The Memorandum of Association outlines the company's goals and objectives, as well as the industry in which it will operate.
• The Articles of Association (AoA) establishes the rules under which the firm will function.
• Because there is only one Director and one member, a nominee on their behalf must be nominated because if he becomes incompetent or dies and is unable to discharge his obligations, the nominee will perform on his behalf and take his place. Along with his PAN card & Aadhar card, his consent in Form INC - 3 would be acquired.
• Proof of the prospective company's registered office, as well as proof of ownership & a letter of authorisation from the owner.
• Forms INC -9 and DIR -2, Declaration & Consent of the Proposed Director
• A professional declaration stating that all compliances have been met.

Filing of Forms With MCA

All of these papers, together with the DSC of the Director & the professional, will be attached to the SPICe Form, SPICe-MOA, & SPICe-AOA & posted to the MCA site for approval or consent. The Pan Number & TAN are produced automatically when the company is formed. There is no need to provide separate applications for the PAN Number and the TAN.

Issue of the Incorporation Certificate

After the verification, the Registrar of Companies (ROC) will issue a certificate of incorporation and after that, you can start your company.

Conclusion

According to the Companies Act, a person can start a company with one member &1 director. Both the director & the member might be the same individual. Thus, a one-person company means that one person, who may be a resident or an NRI, can incorporate their firm, which has the characteristics of a corporation and the advantages of a sole proprietorship.

Since the implementation of GST on July 1, 2017, several OPC firms have transferred or enrolled for GST registration. This registration may be done completely online. It is not necessary to produce physical documentation. OPC must send scan copies of papers in order to register for GST. The GST Number is a fifteen-digit number based on the company's PAN number.