Pratheeksha Swaminathan is a trained carnatic vocalist. During pandemic, she started taking online music classes and realised that it was remunerative and satisfying. Although successful, she felt that having a business identity would go a long way in establishing herself as an expert in the field. She’s heard about “Partnership”, “LLP”, “Company” etc. as business structures. But she is not sure as to what would suit her circumstance. Being an independent and vibrant music professional, she would like to manage the gears of the business herself as it is more to do with skill set rather than man power. Considering the constraints on the investment and control point of view, what business structure would be ideal for Pratheeksha?
Good Service Tax (GST) Compliance
Ever changing rules and regulations of GST law can be daunting and might take away a lot of your productive time to merely understand it. Further, compliance might seem tedious and expensive but non-compliance could cost much more to a business. Our systematic and time bound approach to tax compliance will take this off your “to do list” and leave you with more productive time for your business activities.
The Pandemic was a tough phase for many and entrepreneurs were at the top of the list! But there were a few professions and vocations which proved lucrative and helped many to test the waters of entrepreneurship. One such field was the online coaching platform. What is phenomenal about such fields is that, one is approached for the “service” or “skill” as an expert and not because of being part of a bigger organization.
Pratheeksha desires to have a business identity which will give her the freedom to continue growing and exploring at her own pace and style but would not deter her in terms of practical issues like bringing in investments (thereby diluting the control) and the added costs of compliance. Considering her circumstances, “One Person Company (OPC)” would be ideal for Pratheeksha.
What is OPC?
A partnership firm or a private limited company requires a minimum of two members and hence is a no-go area for entrepreneurs like Pratheeksha. Interestingly, an OPC is basically a Company that is formed with just one (single) person as a member. The concept of OPC although introduced in India in 2013, was not alien to the world earlier. Many countries like Singapore, UK, China and USA legally recognized OPC in the early 2000s.
Why OPC?
- Can you have the cake and also eat it?
A business identity is how an organization projects/expresses itself to it’s target audience. “Company” as a business structure is always an attractive business identity to stake holders dealing with it, due to it’s inherent benefits like the “going concern” concept, governance, etc. The same cannot be said in case of sole proprietorship. Dealing with a sole proprietor is completely “trust based” and given a choice stake holders like Banks, clients and creditors would choose a company over a sole proprietor.
An OPC can be registered as per the provisions of the Companies Act 2013 and a whole array of benefits comes along with the registration. An OPC is allotted a separate PAN and TAN along with the incorporation certificate and where required a GST registration could also be applied along with the Company incorporation.
Once registered, the OPC would hold the position of a Company to its stakeholders and would also retain it’s sole proprietor’s key function of “complete control” over the operations and decision making.
- Best of both worlds !
An entrepreneur puts his/her heart and soul into building an enterprise and in the process may get into staking everything including personal assets! An OPC on the other hand has a distinct identity from it’s member. The liability of an member in an OPC is restricted to the investment in OPC. This helps an entrepreneur to run the business professionally and productively. Hence one gets to run the business efficiently without the worry of putting his/her personal assets at stake for the liability of the OPC.
- Compliance – not so cumbersome !
One thing that could “put off” the enthusiasm of a budding entrepreneur could be the cumbersome compliances involved in incorporating and running a Company. An OPC comes as a relief to such newbies. Since OPC would be registered under the Companies Act, it does require compliance. But when compared to a normal private limited company, an OPC’s compliance is much more lenient.
Company Formation in 4 steps:
All required documents shall be collected from the applicant.
DSC (Digital Signature Certificate) application for the proposed Director followed by application for DIN (Director Identification Number)
Reservation of Unique Name (RUN)
RUN application shall be submitted to ROC via Spice+ seeking for name approval.
MOA & AOA of the proposed OPC, Proof of registered office along with proof of ownership / NOC of owner along with other required documents shall be uploaded & filed in the MCA portal.
Once the documents filed are duly verified by the ROC, Certificate of Incorporation shall be issued based on which the OPC can commence it’s business.
Entrepreneurs – How can we help you?
“All our dreams can come true, if we have the courage to pursue them.”
Walt Disney
An Entrepreneur begins a journey with a lot of dream and aspiration. But beyond all those “think big” thoughts, the reality is that a business requires a lot of hard work and one may not notice the warnings signs early at every speed breaker he/she passes by!
A growing business needs a trusted advisor to ease the pressure by guiding it through complexities that come its way. We understand your needs and can help you with your (cumbersome but compulsory) compliance.
At Chockalingam Unnamalai & Associates, we have a separate vertical that caters to Business Set Up & related activities. We are here to make your life easier from day one !
Reach us for professional service on ROC, GST, Income Tax & TDS Compliances. Onboard us and experience certainty!
Contact:- +91 73050 56628 / unna@onesourcevault.com
ITR Filing – Why choose us?
Effective compliance is a key pillar for growing your finances and career/business. Tax compliance in particular could be cumbersome and at times very stressful. We help you to navigate through the maze of changes to tax laws with ease.
We understand and operate on the principle – “Time is money”. We have a reasonable turnaround time (TAT) which ensures timely tax compliance.
We understand the importance of data security and hence operate in a data-secure environment. Onboard us and experience certainty and value for money!
With a 15 year experience in the Industry, Chocksi decided to commence his practice after the “Entrepreneurial Bug” bit him ! He is the Founder Partner of Chockalingam Unnamalai & Associates, Chartered Accountants.
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