Got an OPC? Here’s a list of Mandatory Compliances for an OPC (one person company)
February 24, 2021
Table of Content
Introduction to One Person company
The idea of one person company for the corporate laws is a revolutionary idea introduced by the Companies Act 2013. Earlier in the old company Act 1956, where a minimum of two directors and shareholders were required. Whereas now the company can be formed with only one person as a director and shareholder. However, as soon as you register a One Person Company, it needs to comply with mandatory compliance as required by ROC. So in this article, we have discussed Mandatory compliance calendar for OPC.
What is one person company?
Section 2(62) of the Companies Act defines a one person company as a company that has only one person as to its members. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.
Know more about the process of registration for One Person Company.
Annual filing for One Person Company (MGT 7)
- The OPC Annual Return Filing shall be filled with the Registrar of the Companies
- The return should be filed with the ROC as an attachment to Form MGT 7
- Such annual return has to be signed by the Company Secretary
- Where there is no Company Secretary available, the director has to sign the return.
- It must be filed by all the OPC registered in India every year
- Documents required for MGT 7:
- List of main business activities
- Details of shares and shareholding
- List of debentures and loans
- Details of other securities held by the company
The information to be mentioned in the Annual filing
- The annual return must consists of the information and documents that include a compliance certificate, registered office address, register of members, shares and debentures details, information about the management of the company, debt details of the company.
- The annual return would also disclose the shareholding structure of the Company, changes in directorship and details of the transfers of securities.
Financial statement of One person Company (AOC4)
- Under Companies Act 2003, the audited financial Statements are to be filed electronically in Form AOC 4.
- The same must be signed by the Board of Directors.
- It must be filed within 180 days from 31st march of the financial year with registrar of the companies.
- The financial report should only cover Balance Sheet, Profit and Loss Account, Audit report, and notes to the accounts.
- A Practicing Chartered Accountant must be appointed as the auditor of the company within 30 days of incorporation as the first auditor of the company.
Appointment of Auditor (Form ADT-1)
- For the Appointment of Auditor, the One Person Company requires to file Form ADT-1 within 15 days of the conclusion of the first AGM.
- In the First AGM of the company, company shall appoint auditor who shall hold office till the conclusion of 6th AGM.
- There is no need to file form ADT 1 for the appointment of the First Auditor who shall hold office till the conclusion of first Annual General Meeting.
- However, when the Subsequent Auditor is appointed, the One Person Company needs to file Form ADT-1.
The Process of E Filing
You can file your application online for AOC4 , MGT7 and ADT-1 A procedure is given below:
- The first step is to visit the MCA website
- Download the E form (above mentioned form no.)
- Then you have to fill out the form
- Then you have to click on the upload E form button
- Then you have to upload your E form.
- After uploading of E form, the system will show you a fee to be paid
- You can pay your fee online
Apart from this, an OPC is required to conduct a minimum of 2 board meetings every year. It is not necessary for One Person Company to hold an Annual General Meeting every year.
Income tax returns, Financial statement, and annual statement filing is a must for every OPC. Law requires all the above-given filings. Every year you have to comply with the concerned authority. These compliances can be made online; you can file your application online on their official websites. So if you are running an OPC, then you have to comply with these filings. In the case of failure of these filings, you may have to face legal problems, and you have to pay a fine for these.
In addition to the above compliance calendar, a one person company may also require complying with TDS regulations, GST regulations, PF and ESI regulations and others based on the requirements.
Know more about the Benefits of One Person Company
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