How to Register for GST as a One Person Company (OPC)

In India, Goods and Services Tax (GST) is a complete, multi-stage, destination-based tax levied on every value addition. Any business entity that meets the prescribed turnover threshold must register under GST. However, businesses operating in multiple states must obtain separate GST registrations for each state.

A One Person Company (OPC) is a popular business structure for solo entrepreneurs, offering limited liability and better credibility. If an OPC operates in multiple states, it must apply for separate GST registrations in each state. This article explains the step-by-step process of obtaining multiple GST registrations online for an OPC, along with essential details like fees, required documents, and cancellation procedures.

One Person Company (OPC) and Its Registration Process

What is an OPC?

An (OPC) is a type of private limited company that requires only one director and shareholder. It is best suited for solo entrepreneurs who want to operate a legally recognized business while enjoying limited liability protection.

Why Register an OPC?

1. Limited Liability: Protects personal assets from business liabilities.

2. Separate Legal Entity: Ensures business continuity and credibility.

3. Easier Compliance: Lesser regulatory burden than a private limited company.

OPC Registration Process in India

• Obtain a Digital Signature Certificate (DSC) for the sole director.
• Apply for a Director Identification Number (DIN) through the Ministry of Corporate Affairs (MCA).
• Choose a Unique Business Name and get approval from the MCA.
• Draft and File Incorporation Documents like the Memorandum of Association (MoA) and Articles of Association (AoA).
• Obtain Certificate of Incorporation from the MCA.
• Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
• Open a Bank Account in the name of the OPC.
• Register for GST (if applicable).

Once the OPC is incorporated, it must apply for GST registration in every state where it conducts business operations.

GST Registration for an OPC in Different States

What is GST Registration?

GST registration is a legal mandate for businesses exceeding the prescribed GST threshold limit. It assigns a unique GSTIN (Goods and Services Tax Identification Number), enabling businesses to collect, charge, and remit GST to the government. This registration ensures compliance with tax laws, facilitates seamless input tax credit claims, and enhances business credibility while preventing legal penalties for non-compliance.

Who Needs Multiple GST Registrations?

If an OPC operates in multiple states—by selling goods or services, maintaining branches, or having warehouses in different states—it must obtain separate GST registrations for each state.

Process to Apply for Multiple GST Registrations for Different States

Step 1: Visit the GST Portal

Go to the official GST registration online portal (www.gst.gov.in).

Step 2: Select "New Registration"

• Choose "Taxpayer" under the registration category.
• Enter your business type as OPC and select the state for which you are applying.
• Enter your PAN, mobile number, and email ID for OTP verification.

Step 3: Provide Business Details

• Legal name of the OPC (as per PAN records).
• Business trade name (if any).
• Business Constitution: One Person Company (OPC).
• Principal place of business address in the respective state.

Step 4: Submit GST Registration Documents

The following documents are required for each state-wise GST registration:

• PAN Card of the OPC.
• Certificate of Incorporation issued by MCA.
• Director’s Aadhaar Card and PAN Card.
• Bank Statement or Canceled Cheque.
• Proof of Business Address (Rental Agreement, Electricity Bill, or Property Tax Receipt).
• Letter of Authorization (if an authorized signatory is appointed).
• Digital Signature Certificate (DSC) of the director.

Step 5: Verification and ARN Generation

• After submitting the application, a verification link will be sent to the registered email and mobile number.
• Once verified, an Application Reference Number (ARN) is generated.

Step 6: GST Officer's Review and GSTIN Issuance

• The GST department reviews the application and may request additional documents.
• Upon successful verification, the state-wise GSTIN is issued within 7-10 working days.

Step 7: Repeat the Process for Each State

For every new state where the OPC conducts business, repeat the same registration process to obtain a separate GSTIN.

Documents Required for GST Registration

To complete GST registration online, an OPC must submit the following documents:

GST Registration Fees

• Government Fees: GST registration is free of charge on the official GST portal.
• Professional Fees: If you hire a consultant or legal service provider, charges range from ₹1,500 to ₹5,000 per registration.

GST Registration Limit

• For Goods: Businesses with an annual turnover exceeding ₹40 lakh must register for GST (₹20 lakh for certain states).
• For Services: Service providers with an annual turnover above ₹20 lakh (₹10 lakh for special category states) must register.

Since an OPC is a registered legal entity, it must apply for GST registration irrespective of turnover if it is involved in inter-state trade.

GST Cancellation Process

If an OPC stops operating in a particular state or discontinues business, it must cancel the GST registration for that state.

Steps for Cancellation of GST Registration

• Log in to the GST portal.
• Go to "Services" → "Registration" → "Application for Cancellation of Registration".
• Provide a Reason (e.g., closure of business, change in business structure, or shifting operations).
• Upload Required Documents, such as closure proof or business transfer documents.
• Submit the Application and verify with OTP.
• Approval from GST Officer: The registration will be canceled within 30 days after verification.

After cancellation, the OPC must file final GST returns and clear pending liabilities.

Conclusion

Applying for multiple GST registrations online for a One Person Company (OPC) is essential when operating in different states. The process involves separate registrations for each state, ensuring compliance with GST laws. By following the step-by-step procedure, submitting the correct GST registration documents, and understanding the fees and limits, an OPC can efficiently manage state-wise GST registrations and ensure smooth business operations.

For businesses looking to expand across multiple states, proper GST compliance is key to avoiding penalties and ensuring seamless transactions.