Hi Lakshita, I found you while reading some threads about working for an US company while living in India. I am going to be in a similar situation from next month as I am moving to India but planning to work for my current employer from there. Do I need to register myself as a 'one person company'? If yes, what is the procedure for it and how many days will the whole process take?
Hi
It is not mandatory to open a one person company, you can even work as a sole proprietor and file your returns accordingly.
Additional compliance of GST will depend upon the type of contract with US company i.e. whether it is an employment contract or a consultancy contract.
We may discuss the issues further in detail over a consultation.
- Provide services as an independent consultant from India to US company. Registering a one person company in India involves additional cost of registration and compliances. Further under income tax, tax is payable at a flat rate on income.
- Under sole propertiorship, income tax is payable at slab rates. GST registration is mandatory after crossing threshold of Rs. 20 lacs. Service provided by you to US company will fall into export of services. Under such category, there is no need to pay GST subject to fulfillment of specified conditions but you will be liable to file GST returns on quarterly basis upto gross receipts of Rs. 5 cr. There is no need of separate registration. Only you have to open a current account and obtaining GST registration. Further you can take the benefit of presumptive taxation scheme under Income tax.
For detailed discussion, you may consult telephonically.
Hello,
Registering an OPC One-Person Company won't be mandatory. You can work as a sole proprietor.
Under Income Tax, the income of a sole proprietor is taxed at slab rates. Whereas an OPC is taxed at a flat rate.
Under GST, compliances would be there if you are working as an independent contractor and not as an employee for the US Company. Registration and return filing compliances would be mandatory if your gross receipts cross the Rs. 20 Lakhs threshold.
I hope this answer satisfies your requirements. For a detailed resolution of your query, you can contact us directly at badlaniassociates at Gmail or take a phone consultation.
Regards,
CA Hunny Badlani
Badlani & Associates
