The Goods and Services Tax Network (GSTN) furnished an advisory for the assessee wishing to enrol as a ‘One Person Company’ under the Goods and Services Tax (GST) regime.
The advisory on 21/03/2023 mentioned that, “As per provision of section 2(62) of The Companies Act, 2013 “One Person Company” is described as a company that secures only one person as a member.
The individual enrolling as a ‘One Person Company’ would have raised some problems but they choose the GST registration. As per the estimations, the same would be seen that choosing the option of one person company is not available in the form which the CGST/SGST acts notified and therefore does not available on the GSTN portal.
In the form of work around a suggestion that in Part B of GST registration From REG-01, the petitioner might choose (Constitution of Business under the ‘Business Details’ tab using the dropdown list) option “Others”, when the assessee wishes to enrol for the GST as “One Person Company”. Post choosing the “other” option, the petitioner will indeed specify “one person company” in the text field and comply with the procedure for the normal registration application to finish the procedure.
For additional problems, same would be recommended to raise the ticket at the self-help portal.
Ministry of Corporate Affairs vide its G.S.R. Notification No. 250(E) on 31st March 2014 specified that the Companies (Incorporation) Rules, 2014 beneath the Companies Act, 2013 furnishes the formation of One Person Company.
Read Also: How GST will be Helpful for the Companies
The start of one-person companies in the statute system is a movement that motivates the corporatization of micro-businesses and entrepreneurship through the easier statute regime so that the small entrepreneur would not be forced to dedicate recognizable time, energy, and resources to complex legal compliances. The same shall indeed generate employment chances and not only make people able to contribute to economic growth.
Under the Companies Act of, 2013 One Person Company of sole proprietor and company form of business furnished with concessional /relaxed requirements. With the implementation of the Companies Act, 2013, a single national person can constitute a Company, under the One Person Company (OPC) concept. A single national individual could contribute to the company through the execution of the Companies Act 2013, under the concept of One Person Company (OPC).
