OPC or One Person Company is one of the easiest forms of corporate entities to manage.OPC Registration opens up new business opportunities for sole proprietors and entrepreneurs who also wish to enjoy the advantages of limited liability and a separate legal entity as well.
One Person Company
One Person Company (OPC) registration is an upper-level concept that promotes the inclusion of micro-businesses and people who want to start their business but has no time, resources or means to get more associates to execute the marketing plan.
One of the most important benefits of a One Person Company (OPC) is that there is only one member of the company, while a minimum of two members is required for organizing and maintaining a Pvt Ltd Company or a LLP. You can register the one-person company at GST Suvidha Centers for easy and quick service.
Brief Description
The idea of One Person Company in India was carried through the Companies Act, 2013 to support entrepreneurs who on their own are competent in starting an enterprise by allowing them to create a single person economic entity. One of the most important benefits of a One Person Company (OPC) is that there can be only one member in an OPC, while a minimum of two members is required for organizing and managing a Private Limited Company or a Limited Liability Partnership (LLP). Similar to a Company, a One Person Company is a different legal entity from its promoter, offering limited liability assurance to its sole stockholder, while having continuity of the company and being easy to combine.
Though a One Person Company supports a lone Entrepreneur to run a corporate entity with limited liability security, an OPC does have a few imperfections. For instance, every One Person Company (OPC) must choose a candidate Director in the MOA and AOA of the company – who will become the partner of the OPC in case the sole Director is useless. Also, a One Person Company must be turned into a Private Limited Company if it passes an annual turnover of Rs.2 crores and must file audited economic statements with the Ministry of Corporate Affairs at the end of every Financial Year like all kinds of Corporations. Therefore, it is necessary for the Entrepreneur to carefully examine the characteristics of a One Person Company before incorporation.
GST Suvidha Centers is the business leader in company registration services in India, allowing all kinds of company registration like private limited company registration, one person company registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company Registration, and Indian Subsidiary registration. The common time taken to create a one-person company registration is about 10 – 15 working days, subject to government processing time and client document submission. Get a free deliberation for one person company registration and company set up in India by scheduling an appointment with a GST SUVIDHA Canters advisors.
Documents Required
We have to prepare the following documents which are required to be submitted to the ROC:
The Memorandum of Association (MoA) which are the objects to be followed by the Company or stating the business for which the company is going to be incorporated.
The Articles of the Association (AoA) which lays down the by-laws on which the company will operate.
Since there are only 1 Director and a member, a nominee on behalf of such person has to be appointed because in case he becomes incapacitated or dies and cannot perform his duties the nominee will perform on behalf of the director and take his place. His consent in Form INC – 3 will be taken along with his PAN card and Aadhar Card.
Proof of the Registered office of the proposed Company along with the proof of ownership and a NOC from the owner.
Affidavit and Consent of the proposed Director of Form INC -9 and DIR – 2 resp.
A declaration by the professional certifying that all compliances have been made.
Benefits of Using a GST Suvidha Center
- Expertise: GST Suvidha Centers are staffed with professionals who have in-depth knowledge of GST laws and regulations. They can provide expert guidance and assistance throughout the registration process.
- Efficiency: These centers often streamline the registration process, reducing the time and effort required by individuals.
- Convenience: By offering a one-stop shop for GST-related services, GST Suvidha Centers eliminate the need for individuals to visit multiple government offices.
Cost-effective: While some GST Suvidha Centers may charge a nominal fee for their services, the overall cost can be significantly lower than hiring a professional accountant or tax consultant.
The GST Registration Process for One Person Companies
The GST registration process for a One Person Company typically involves the following steps:
- Obtain a Digital Signature Certificate (DSC): Obtain a DSC from a certified authority. This is required for electronic filing of GST returns.
- Gather necessary documents: Prepare the required documents, such as proof of identity, address, and business premises.
- Choose a GST Suvidha Center: Select a nearby GST Suvidha Center that offers the services you need.
- Submit application: Fill out the GST registration application form and submit it to the GST Suvidha Center along with the necessary documents.
- Verification and approval: The GST authorities will verify the information provided in your application. If everything is in order, your registration will be approved.
Obtain GSTIN: Once your registration is approved, you will receive a Goods and Services Tax Identification Number (GSTIN).
Tips for a Smooth Registration Process
- Gather all necessary documents in advance: Ensure that you have all the required documents ready before visiting the GST Suvidha Center.
- Choose a reputable center: Research and select a GST Suvidha Center that has a good reputation and positive reviews.
- Be prepared to provide additional information: The GST authorities may request additional information or documents during the verification process.
Seek clarification if needed: If you have any doubts or questions, don’t hesitate to ask the staff at the GST Suvidha Center for clarification
Additional Considerations for One Person Companies
- Unique Identification Number (UIN): Obtain a UIN from the Ministry of Corporate Affairs to establish your One Person Company.
- Annual Compliance: Ensure that your One Person Company complies with the annual filing requirements and other statutory obligations.
- GST Return Filing: Understand the GST return filing requirements based on your company’s turnover and the nature of your business.
- ITC Utilization: Claim input tax credit (ITC) as per the applicable rules and maintain proper documentation.
GST Audits: Be prepared for potential GST audits and maintain accurate records to facilitate the audit process
Conclusion
Registering a One Person Company under the GST regime can be a straightforward process with the assistance of a GST Suvidha Center. These centers provide valuable guidance, support, and expertise, helping individuals navigate the GST landscape effectively. By following the steps outlined above and seeking assistance from a reputable GST Suvidha Center, you can ensure a smooth and successful GST registration process for your One Person Company.
FAQ'S
OPC Company (One person Company)
1. What is a one-person company?
- One Person Company means a company which has only one person as a member. (Section 2(62) of the Companies Act, 2013)
- Section 3 of the Act indicates that OPC is also a private limited company meaning all the characteristics of a private limited company shall apply to a OPC too.
2. Who is eligible to become a member of an OPC?
- A natural person who is an Indian citizen whether resident in India or otherwise shall be eligible to incorporate a One Person Company.
3. Does a OPC have perpetual succession?
- A OPC is essentially a private limited company with only one member/shareholder.
- Since it is a private limited company, it has perpetual succession. The single member is required to appoint a nominee who will take over the reign in case of death or incapacity of the member.
4. Is it mandatory for a member of a OPC to appoint a nominee?
- Yes, it is mandatory for a member of a OPC to appoint a nominee.
5. Can a person act as a member of more than one OPC at the same time?
- No, a person cannot act as a member of more than one OPC at any point of time
- Further, a person can also not act as a nominee of more than one OPC
6. What if a member becomes a member of 2 OPC’s – a situation wherein he becomes a member of one OPC by virtue of being a nominee after death of a member and of a OPC in which he is actually a member?
- He/she shall withdraw his membership from any one of the OPCs within 180 days.
7. Can a minor become a member or nominee of an OPC?
- A minor cannot become the member or nominee of an OPC or can hold shares of a OPC with beneficial interest.
8. What is the threshold limit at which an OPC mandatorily gets converted to a public company or private company?
- There is no threshold limit for conversion of an OPC to a public limited or a private limited company.
- Provisions relating to minimum paid up capital that warranted compulsory conversion of a OPC has been removed in the Companies (Incorporation) Second Amendment Rules, 2021.
9. What are the restrictions of an OPC?
- OPC cannot be converted into a Section 8 company.
- OPC cannot carry out Non-Banking Financial activities including investment in securities of any body-corporate.
10. Annual compliance of a OPC
- An OPC is required to hold at least one Board meeting in each half of the calendar year and the time gap between the two Board meetings shall not exceed 90 days.
- E form AOC -4 to be filed with ROC within 180 days from the close of the financial year. (AOC 4 is an annual financial report containing balance sheet, P&L, auditors report)
- Form MGT 7A to be filed with ROC within 60 days from the date of the AGM. (MGT 7A is an annual return that contains details of directors and shareholders). (Refer FAQ 11 and 12)
- Income Tax return within 31st October of the following financial year.
- Tax audit report in Form 3CA-3CD if the turnover crosses the prescribed limit as given in the Income Tax Act, 1961 on or before 30th September of the following financial year.
11. Is it mandatory for a OPC to hold an AGM?
- It is not mandatory for a OPC to hold an annual general meeting.
12. When it is not mandatory for a OPC to have AGM, what is the due date for filing MGT 7A?
- If AGM is not held, the due date to file Form MGT 7A is 60 days from the calculated due date of AGM.
- Calculated due date of AGM = completion of 6 months from the end of the financial year.
13. Who is required to verify the annual return of an OPC?
- Annual Return of an OPC shall be signed by the Company Secretary or where there is no Company Secretary by the director of a company.
14. What is Form INC-4?
- Form INC-4 is filed with the Registrar when the nominee of an OPC takes the place of the sole member of an OPC in the event of his death or incapacity to enter into a contract.
- Such a form is required to be filed within 30 days of change in membership with the prior written consent of the person so nominated in Form INC-3.
15. How is an OPC converted to a private company or public company?
- An OPC can be converted into a private company or public company other than a company registered under section 8 of the Act in the following manner:
- By increasing the minimum no. of members and directors to 2 or 7 members and 2 or 3 directors, as the case maybe and
- By maintaining the minimum paid up share capital as per the requirements of the Act for such company including due compliance of section 18 of the Act for such conversion.
- E-Form INC-6 shall be filed for conversion of OPC into a private/public company.
16. What are some of the exceptions given to an OPC?
An OPC is exempted from preparing and disclosing a Cash Flow Statement as part of its financial statement
