Everything About GST Registration of an OPC

After the introduction of GST by the Indian government, a lot of improvements have come in the working of companies. Today, every company and businessman can apply for GST Registration online from the official site. Even one-person companies can register for GST easily these days.

Before we jump to the section on GST registration of an OPC, let us discuss the meaning of OPC. One Person Company or OPC is a company owned by a single person. The company has a different identity from its directors. Before the introduction of the Companies Act 2013, the registration of the company by a single person was not possible. But now, OPC can also apply for GST registration.

This blog highlights the process of GST registration of an OPC in detail with documents to be submitted.

What is One Person's Company?

We discussed OPC in some words in the above section. Now, let us have a glance at One Person Company in detail. OPC is a company in which there is only one member. A single-member acts as a member as well as director of the company.

One Person company registration is done when there is only one promoter or founder of the business. It is a separate identity from its promoters. Apart from that, OPC also has its assets and liabilities. The promoter of the company is not liable to pay debts and losses of the company.

Characteristics of One Person Company

The features of One Person Company are stated as under:

1. Private Company

According to section 3(1) ( c ) of the Companies Act 2013, an individual can form an OPC for any lawful act. As per this section, OPCs are considered as private companies. 

2. Nominee

Unlike other companies, OPC has one member. One individual has the right to mention while registering an OPC.

3. One Member

One person company has only one member or shareholder. It is similar toa sole-proprietorship firm.

4. One Director

OPCs have only one person who acts as a member as well as a director. However, OPCs can appoint a maximum of 15 members.

5. Special Privileges

One Person companies get many benefits and special privileges according to the Companies Act. These benefits do not applyto other types of companies and firms.

6. No Benefit of Perpetual Succession

While other companies have perpetual succession, OPCs do not have this benefit. As OPC has only one member, the death of one member affects the existence of the company. OPC does not have the benefit of perpetual succession.

7. No Limit on Paid-up Share Capital

According to the Companies Act, of 2013, there is no minimum paid-up capital for OPCs. You can register an OPC with any amount of capital.

When OPC Apply for GST Registration?

The process of GST Registration in India also applies to One Person companies. OPCs should get register for GST under the following conditions:

• If OPCs involved in supplying goods and services earn a yearly turnover of more than INR 20 Lakh, these companies must apply for GST.
• Any OPC with VAT, excise registration, or service tax registration should apply for GST registration.
• Any casual taxable person who does not have a fixed place of business for the supply of goods and services can apply for GST registration.
• If OPC supplies products, goods, and services outside the state, it must apply for GST registration compulsorily. This rule applies to OPC irrespective of the turnover of OPC.
• Person companies engaged in the supply of goods and services and products via e-commerce platforms should apply for GST registration compulsorily.

Documents to be Submitted by OPCs for GST Registration

One person company should submit the following documents to register for GST.

1. Copy of PAN card of the company
2. Registration certificate of OPC
3. Memorandum of Association and Articles of Association
4. Photo, Aadhar card, and PAN cards of every director of the company
5. Copy of bank statement or canceled cheque
6. Letter of authorization of signatory
7. Copy of office address such as electricity bill, water bill, property tax receipt, or rent agreement.
8. Address proofs such as primary or secondary place of business.
9. NOC or no-objection certificate in case of rented place of business
10. Email ID and contact number of authorized people
11. Board resolution that shows the appointment of the authorized person.

What is the procedure of GST registration for OPCs?

GST registration is necessary for any company or firm that engages in the supply or purchase of goods and services. GST gives ample benefits to get input tax credit benefits. You can do GST registration on the official site of the government. The process to register for GST is as under:

• The first step is to login to the official portal of GST.
• Then you have to fill up an online form by entering your PAN card, email ID, or mobile number.
• The next thing you have to do is to confirm registration through OTP that you receive by email.
• Then you have to upload all the necessary documents and papers.
• Now, you have to fill in part B and use the OTP number.
• Then you will receive ARN (Application reference number).
• GST officer will verify all the documents submitted by the company.
• After checking all the documents, the GST officer will accept or reject an application within a week.
• You have to provide some more proof if the GST officer demands so.
• Finally, you will get a GSTN number after the GST officer verifies and checks all the documents and papers submitted by an applicant.

What is the Timeline for OPC Registration?

DSC and DIN of proposed directors can be received within 1 day. Certificate of Incorporation of OPC will be given within 3 to 5 days of registration. One Person company registration in India will take around 10 days including departmental acceptance of the documents and getting replies from the department.