Just like other companies, GST registration for OPC, that is One Person Company is also mandatory if the particular OPC falls under the category of GST threshold limit. These are the companies which need to be registered under the Companies Act of 2013. They have almost all the qualities of body corporates. They are alternatives to sole proprietorship firms. Before 2013 this concept of One Person Company was not in existence. It was developed through the time and implemented through the company law of 2013. The present blog will discuss in detail regarding the GST registration for OPC, process of registration, document checklist etc. if you are also a One Person Company Owner and whats to take registration for GST must read this blog till the end. It will help you out to know about the relationship between OPC and the registration of goods and services.
What is One Person Company?
A body corporate incorporated with one director and one nominee, under the Companies Act of 2013 is known as One Person Company. These companies are best for those who want to start their business solely but simultaneously want to enjoy the benefits of body corporate. The registration process of these entities is just like the other entities and needs to be done through the Ministry of Corporate Affairs website itself. Registrar of companies is the same authority which looks after the working of the One Person Companies. Some of the key benefits of OPC are mentioned below:
- Can be formed with just one person
- Management and operations are efficient as they are just in one hand
- Decision can be done promptly
- Governed by the company law
- Have status of juristic person
- Can sue and being sued as per the requirement and the situation
- It is having perpetual succession which means it will not die ever
- Distinct identity is associated with such kind of corporations
- Having the common seal
Turnover Limit of GST registration for OPC
In India, GST registration for OPC is compulsory if they fall under any of the businesses dealing in goods having turnover reaches or exceeds Rs. 40 lakhs. Failure to comply with the same can result in heavy penalties. Similarly, OPCs offering services are required to register for GST if their turnover exceeds Rs. 20 lakhs to avoid fines and legal action. OPCs which are in the E-commerce businesses, irrespective of their turnover, must register for GST. In the case of interstate transactions, businesses operating within a single state need not register for GST until they reach the turnover limit, but those engaging in interstate transactions across multiple states are mandated to register for GST without any turnover limit requirement.
Process of GST registration for OPC
Although the process of registration of GST is online it involves a lot of formalities. It’s not easy to do GST registration as a minor single glitch or mistake can lead to cancellation of your GST. hence in order to obtain the GST registration for OPC without any mistake follow the process given below:
- Ensure that your OPC is eligible for GST registration.
- You will need a DSC and DIN for the authorized signatory of the OPC, in order to complete the registration procedure
- Visit the official GST portal
- Create an account using the Director’s PAN and other required details.
- Log in to your GST account
- Fill out Form A (Part I) by providing basic information about your OPC
- After filling out Form A (Part I), you will receive an Application Reference Number (ARN).
- Complete the second part of Form A, providing additional information about your OPC.
- Upload all the required documents with the application for registration of GST
- The GST officer will review the documents and verify the information provided.
- If there are any discrepancies or missing documents, they may request additional information.
- In some cases, a GST officer may conduct a physical verification of your business premises.
- Once all the documents are verified and the application is in order, the GST officer will approve the registration
- Unique GST Identification Number (GSTIN) will be allocated to your OPC.
- You can download the GST registration certificate from the GST portal.
Documents Required for GST registration for OPC
Documentation that is too proper is a very crucial part of registration for goods and services. Without having proper documents it is impossible to get GST registration for OPC. Hence before starting the registration process for obtaining goods and services registration, one must make sure that he will collect all the required documents. The list of some of the key documents are given below:
- PAN card of the One Person Company will be required
- Incorporation certificate of the entity
- MOA and AOA of the One Person Company
- Proof of the business place, such as a rent agreement or electricity bill
- Passport-sized photographs of the authorized signatory
- Bank account details of the authorized signatory
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Address and ID proof off the director of the OPC
Conclusion
Not all the One Person Companies need to obtain registration for GST. GST registration for OPC is must, when its turnover crosses specific thresholds. One Person Companies are governed by the Companies Act of 2013 just like other corporate entities. Goods-based OPCs need registration for goods and services if their turnover exceeds Rs. 40 lakhs, while service-based OPCs require registration beyond Rs. 20 lakhs, and e-commerce OPCs must register, irrespective of turnover. The process involves providing necessary documents, including PAN, incorporation certificate, MOA, AOA, proof of the business place, photographs, bank details, DSC, DIN, and director’s ID proof. The registration takes place through the official GST portal, leading to a Unique GST Identification Number (GSTIN) for compliance with GST regulations. After getting this registration for goods and services tax, it is mandatory for the OPC to comply with the Goods and Services Tax Act of 2013.
