OPC Compliance
An OPC or One-person Company is a type of company that is owned and managed by a single individual. Section 2(62) of the Companies Act 2013 defines an OPC as a company with only one member. The management of an OPC is also solely controlled by one person who holds 100% of the shares in the company. In India, OPC can only be registered as a Private Limited Company, which means that all the legal provisions applicable to Private Limited Companies also apply to OPCs. This includes the need for OPC compliance with specific annual provisions for OPC annual compliance.
As a One Person Company (OPC) in India, it is essential to comply with the government’s annual compliance requirements to ensure that your company remains compliant with all the applicable laws and regulations. At Audit Needs, we understand the importance of OPC Compliance requirements and are committed to helping One Person Companies meet their annual compliance for OPC requirements. Our team of experts is always available to assist you with any compliance-related queries and provide timely and accurate advice. Contact us today to learn more about our OPC annual services for One Person Companies.
One Person Company
One Person Company (OPC) is a company with only one individual as its member or shareholder. OPC registration is carried out when only one member or promoter exists for the business. This type of registration is preferred by many entrepreneurs over sole proprietorship businesses due to the numerous advantages that OPCs offer.
One-Person Company Compliances
One Person Company (OPC) Compliances refer to the legal requirements that a company with a single owner must fulfill to maintain its active status as a separate legal entity. Every year, all registered OPCs must file an annual return and audited financial statements with the Ministry of Corporate Affairs (MCA), regardless of their turnover. These OPC compliance filings are used to report the company’s activities and financial data for the previous financial year. The annual filing deadline depends on the Annual General Meeting date. Failure to comply with OPC requirements can lead to the company’s name being removed from the RoC’s register and the disqualification of its directors. The MCA has enforced strict action against non-compliance in the past.
Importance of OPC Annual Compliances
Running a One-Person Company is not a simple task, as many individuals starting a company may not be aware of the mandatory compliance for OPC that need to be fulfilled. Failing to comply with these regulations can lead to hefty penalties and may result in the company and its directors facing scrutiny and further investigation.
It is worth noting that One-Person Companies are required to perform annual OPC compliance requirements from the time of their incorporation, and non-compliance can create various hindrances for the company in the form of penalties and fines. Therefore, it is essential to be aware of and comply with the applicable OPC annual compliance regulations to avoid such situations. Additionally, One-Person Companies must provide accurate financial information to shareholders and investors.
Benefits of OPC MCA Compliances
One-Person Company (OPC) compliance has several benefits that include limited liability protection, increased opportunities to get funds from financial sponsors, and continuous existence.
The following are some of the advantages of performing annual compliance for OPCs:
- Easy to raise funds from financial investors – Proper OPC annual compliances, including for OPCs, enhance the confidence of financial investors and makes it easy to raise funds from them.
- Maintains active status – Timely and proper OPC Compliance helps maintain the company’s active status.
- Accurate data collection: Annual compliance for OPCs ensures that the data collected for the OPC annual compliances are accurate and true.
- Avoids hefty penalties: Non-compliance often results in hefty penalties and fines. Proper annual OPC compliance requirements help in avoiding these penalties.
Mandatory Compliance for OPC Annual Filing
The mandatory compliance for OPC annual filing are as follows:
- Conducting Annual General Meeting (AGM): OPCs must conduct an AGM within six months from the end of the financial year. It is mandatory to hold an AGM even if only one director in the OPC exists to comply with OPC annual compliance regulations.
- Filing Financial Statements: OPCs must prepare financial statements such as balance sheets, profit and loss, and cash flow statements and file them with the Registrar of Companies (ROC) within 30 days of the AGM.
- Filing Income Tax Returns: OPCs must file income tax returns by July 31st of each year.
- Filing Annual Return: OPCs must file an annual return with the MCA within 60 days of the AGM.
- Statutory Audit: OPCs must conduct a statutory audit of their financial statements by a qualified Chartered Accountant
- Maintenance of Statutory Registers and Records: OPCs must maintain various statutory registers and records, such as the register of members, register of directors, and minutes of board meetings.
Failure to comply with these annual OPC compliances may attract hefty penalties and fines and may even lead to the deregistration of the OPC. Therefore, OPCS must ensure they comply with this mandatory compliance for OPC annual filing.
Conducting the Board Meeting
According to the Companies Act 2013, Section 173 mandates that a One-Person Company must conduct a minimum of one Board meeting annually. These meetings should be spaced out at least 90 days apart from each other and held every six months. It’s important to note that the provisions of Sections 173 and 174 regarding the quorum of meetings of the Board of Directors do not apply to a One-Person Company with only one director on its board.
Appointment of Auditor
As per Section 139 of the Companies Act, One Person or Company must appoint an Auditor. A Chartered Accountant firm shall audit the company’s accounts, and the Auditor will verify the books of accounts and issue an Audit report.
It’s important to note that the provision regarding the rotation of the Auditor does not apply to a One Person Company.
Filing of Annual Return
Every One Person Company must file their Annual Return within 180 days from the end of the Financial Year. The Annual Return should include details about the company’s shareholders or members and its directors.
The OPC compliance filing process requires the submission of Form MGT-7, the Annual Return form. OPCs need to ensure that this Form is filed within the specified timeline of 180 days from the end of the financial year.
Financial Statement
One Person Company must file financial statements that reflect the company’s finances, including the balance sheet, statement of profit and loss account, and director report to comply with OPC annual compliance regulations.
The submission of Form AOC-4 for Financial Statements is mandatory, and it should be filed within 180 days from the end of the financial year. The due date to file AOC-4 for OPC is 27th September every year.
Disclosure of Interest in Other Entities
In each financial year, the directors of the OPC must disclose any interest they have in other entities in the first meeting of the Board of Directors, using Form MBP-1.
Penalty: The director in default shall be punishable with imprisonment up to 1 year, or a fine up to Rs 1 lakh, or both.
KYC of the Director of the company
For annual compliance for OPC, individuals holding DIN as of March 31st of the financial year must submit Form DIR-3-KYC for the respective financial year by September 30th of the immediate next financial year.
Filing the Form DPT-3
The Form DPT-3 must be filed annually by every company, providing the Return of deposits and particulars that are not considered as deposits as of March 31st. The deadline for filing this Form is on or before June 30th. This is also one of the important OPC annual compliance requirements.
Penalty for OPC Non-Compliance
Failure to comply with MCA Annual Return filing for OPC can lead to a late fee of INR 200 per day, and for DIN KYC, it is INR 5000.
Preparing the Statutory Register
According to Section 88 of the Companies Act 2013, One Person or Company must maintain statutory registers. Additionally, OPC compliance with certain event-based requirements, including:
- Share Transfer
- Director Appointment or Resignation
- Change in Nominee or Bank Signatories
- Change in Auditor.
Under OPC Statutory Audit, CA Firm will give review report certification. OPC utilizes form AOC 4 to record their yearly fiscal summaries to ROC. A massive penalty of Rs 100 daily on delay in documenting Form AOC 4 is levied. Moreover, a sum of Rs. 1000 every day of default is charged from the organization, which can go the most extreme up to Rs. 10, 00,000.
Income Tax Filing
All private or public companies are obligated to make Income Tax Returns Filing. Each OPC enlisted in India needed to file ITR. ITR is one of the essential for annual OPC compliance requirements regardless of whether OPC has not.
An OPC (One Person Company) must file its income tax returns (ITR) every year by the due date, usually July 31st for individuals and September 30th for businesses. The ITR filing process involves reporting the company’s income, expenses, and deductions for the financial year to the Income Tax Department.
The OPC must also obtain and maintain a valid Permanent Account Number (PAN), which is used to identify the company for tax purposes.
GST Filing for OPC
An OPC (One Person Company) registered under GST (Goods and Services Tax) must file regular returns to comply with the GST laws. GST returns are filed online through the GST portal, and the frequency of the returns depends on the turnover of the OPC.
An OPC with an annual turnover of up to Rs. 5 crores must file quarterly returns, while those with a turnover above Rs. 5 crores must file monthly returns. The GST returns filed by the OPC include details of its sales, purchases, and taxes paid and collected. The returns must be filed within the due date specified by the GST laws to avoid penalties and interest charges.
Apart from regular returns, an OPC may also be required to file an annual return and get its accounts audited if its annual turnover exceeds Rs. 2 crores. An OPC should maintain accurate and up-to-date records of its transactions to ensure timely and accurate GST compliance. Seeking the guidance of a qualified GST professional can help an OPC comply with the GST laws and avoid any legal consequences.
Documents Required for the Annual Compliance of One Person Company
The Annual OPC Compliance requires several documents to be submitted, including:
- Receipts of purchases and sales, along with invoices of expenses incurred during the year
- Bank statements from April 1st to March 31st for all bank accounts in the name of the company
- Details of GST returns filed (if applicable)
- Details of TDS challans deposited and TDS return filed (if applicable)
- Balance sheet and profit & loss account
- Financial statements
- Director’s report
- Details of the member/shareholder
- Details of directors
These documents are necessary for OPC compliance with the legal requirements and regulations of the Companies Act 2013.
Why Choose Audit Needs for OPC Compliance?
At Audit Needs, we have a team of well-trained experts to assist you throughout the Annual Compliance for OPC process of your one-person company. Our team of experts will guide and assist you in the compliance and mandatory compliance for OPC process, ensuring your work’s timely and effective completion. If you have any queries related to Annual Compliance for OPC and related services, our experienced and trained professionals at Audit Needs are always ready to help. You can contact us, and our team of experienced professionals will provide you with timely updates about the OPC compliance process and help you complete your job efficiently.
Importance of Filing Annual Compliance for an OPC
Annual Compliance with an OPC has several advantages, including:
- Legally Compliant: Filing your annual compliance ensures that your OPC follows the rules set by the Companies Act 2013.
- Preventing Deregistration: If you miss the required filings, the Registrar of Companies (RoC) may strike your OPC off the official register, which can shut down your business.
- Building Trust and Credibility: Regular and timely filing shows that your company operates transparently and responsibly. Timely filing of the required returns and documents boosts your credibility with investors, banks, and other business partners.
- Avoiding Fines and Penalties: Missing deadlines for compliance can lead to fines, which can impact our business.
- Financial Transparency: By submitting your financial statements, you provide a clear picture of your company’s financial health, which is crucial for planning, getting loans, or attracting potential investors.
- Personal Assets Protected: Filing the necessary paperwork ensures that the limited liability protection of your OPC is maintained, which means your personal assets are kept safe from business risks.
OPC Annual Compliance Checklist
A One Person Company (OPC) is required to fulfil specific annual compliance obligations as outlined in the Companies Act, 2013, to avoid penalties or deregistration. Use this yearly compliance checklist to guarantee your One Person Company (OPC) stays compliant with Indian laws:
- Hold an annual general meeting (AGM) six months after the end of the financial year.
- File Form AOC-4 along with the ROC 180 days after the end of the financial year.
- Form MGT-7: File Form MGT-7 with the ROC 180 days after the end of the financial year.
- The director of an OPC is obligated to submit the MBP-1 form annually. The form discloses the director’s interest in any other entity.
- Hire a working Chartered Accountant to be the Auditor.
- File the Income Tax Returns by September 30 of every financial year.
- Make sure all files and payments connected to GST are current.
- Maintaining compliance with TDS and PF/ESI rules will help you.
- Annually, schedule at least one Board meeting spaced at least ninety days apart.
- Keep all required records kept current, including the lists of directors and members.
- Form DIR-3 KYC for Directors: File Form DIR-3 KYC for every director by July 31 of every year.
OPC Annual Filing: Mandatory Compliances
Being a One Person Company (OPC) in India comes with four yearly filing-mandated compliance obligations:
1. Every OPC must submit its Annual Return (Form MGT-7) to the ROC within 180 days after the end of the financial year. This form includes the following information:
- Details about the company, such as its name, registration number, and office address.
- Information about the shareholder.
- Change in Shareholding pattern (if any)
- Director’s Information
- Declaration about the Financial status of the Company.
2. OPCs have to submit their Financial Statements (Form AOC-4) to the ROC within 180 days after the end of the financial year. This form contains the following information:
- Financial Statement including Balance Sheet, Profit & Loss Statement, Cash Flow Statement.
- Director’s Report
- Certification by the Director
- If there have been any transactions between the company and its related parties, such as directors or their family members, they should be properly disclosed.
3. OPCs have to name a professional Chartered Accountant as their Auditor and submit Form ADT-1 with the ROC. This form is used to appoint or re-appoint an auditor of the company, and it contains the following information:
- Details of the Company, including its registration number and registered office address
- Detail of the Auditor- its name, address, membership number, and details of whether the auditor is firm or not.
- Consent of the Auditor.
4. Moreover, the OPCs have to submit their Income Tax Returns by September 30 of every financial year.
Documents Required for OPC Annual Compliance Filing
Get the following key documents to guarantee seamless yearly filing for your One Person Company (OPC):
1. PAN, Corporate Identification Number, Registered Office Address of the Company.
2. List of the activities/Business activities or operations carried out by the Company during the financial year.
3. Name, address, and contact details of the sole shareholder.
4. Shareholding details (even though there is only one member, this still needs to be recorded).
5. Name, address, and contact details of the sole director of the OPC.
6. Director Identification Number (DIN) of the director.
7. Dates indicating the start and end of the company’s financial year (usually from April 1 to March 31).
8. A declaration from the Director of the company confirming the company’s compliance with the Companies Act, 2013.
9. Declaration regarding Directors’ interests in the company, if applicable.
10. List all securities the corporation has, including any preference shares, convertible securities, etc.
11. List of shares and debentures issued during the year, including changes in the issued capital.
12. Detailed document containing information about the management of the company, such as new appointments and resignations.
13. A statement showing the company’s financial position, including assets, liabilities, and equity, as of the end of the financial year.
14. A summary of income, expenses, profits, and losses for the financial year.
15. A report showing the inflows and outflows of cash in the business (not mandatory for OPCs unless required by accounting standards).
16. A report signed by the director (in OPC, this is usually the sole shareholder/director) confirming the accuracy of the financial statements.
17. An independent auditor’s report confirms that the financial statements comply with accounting and legal standards (if the company has appointed an auditor).
18. A copy of the AGM minutes or signed resolutions documenting approval of the financial statements and auditor’s appointment.
19. The signed resolution passed by the sole member or the director approving the financial statements for the year
20. A copy of the filed ITR form for the relevant year confirming the company has paid its taxes.
21. A copy of the audited financial statements (Balance Sheet, Profit & Loss account) submitted with the Income Tax Return.
22. For Director KYC and Shareholder KYC norms:
- Aadhar card or Passport of the Director
- PAN Card of the Director
- Proof of Address of the Director
- Recent two photographs of the Director
23. Any changes in the shareholding pattern throughout the year.
24. Details of Any Securities Transfer (if applicable).
OPC Annual Compliance Filing Procedure
1. Compile all the required papers and documents, including compliance certifications, shareholder information, and financial statements.
2. Hire a certified Chartered Accountant to serve as the OPC auditor. This stage is crucial for correct financial reporting.
3. Though not required of OPCs, conducting the Annual General Meeting (AGM) is advised for openness and good governance.
4. File Form MGT-7, the Annual Return. It has to be submitted within 180 days from the financial year-end with the ROC.
5. File Form AOC-4, which consists of the reviewed financial records, has to be filed within 180 days from the financial year-end.
6. Submit the Auditor’s Report, along with the financial statements, to substantiate the accuracy and truthfulness of the accounts.
7. File Income Tax Return (ITR-6) by 30th September of every financial year.
8. Ensure compliance with all relevant duties relating to:
Penalties for Not Filing Annual Compliance for OPC
Compliance | Penalties and Consequences for untimely submission |
Annual Return: MGT-7 |
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Financial Statements: AOC-4 |
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Failure to comply with the Annual Filings |
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Why Choose Audit Needs for OPC Compliance?
As a leading online legal services provider in India, Audit Needs focuses on One Person Company (OPC) registration and compliance. Our industry-specific uniqueness comes from our dedication to quality and client satisfaction.
- Competent Group of Professionals: Our seasoned OPC compliance team is committed to helping you at every stage of the compliance process. We make sure you receive the help you need as we appreciate the complexity involved.
- Prompt and Correct Guidance: We help you negotiate legal obligations confidently by offering quick and accurate compliance-related advice. Being proactive helps reduce non-compliance risk.
- Customized Answers: At Audit Needs, we provide tailored solutions that meet your OPC’s particular requirements. Our services are designed to match the needs of clients and their needs to guarantee the best results.
- Affordable Services: We believe in giving the company the best result, and therefore, our services are reasonably priced so that you can focus on the growth of your business, not the finances.
- Hassle-free Compliance Process: Our staff manages all paperwork and legal requirements so you may concentrate on expanding your company.
For your OPC compliance requirements, choose Audit Needs for a smooth, encouraging path to maintaining your company’s legal status.
OPC Compliance
An OPC or One-person Company is a type of company that is owned and managed by a single individual. Section 2(62) of the Companies Act 2013 defines an OPC as a company with only one member. The management of an OPC is also solely controlled by one person who holds 100% of the shares in the company. In India, OPC can only be registered as a Private Limited Company, which means that all the legal provisions applicable to Private Limited Companies also apply to OPCs. This includes the need for OPC compliance with specific annual provisions for OPC annual compliance.
As a One Person Company (OPC) in India, it is essential to comply with the government’s annual compliance requirements to ensure that your company remains compliant with all the applicable laws and regulations. At Audit Needs, we understand the importance of OPC Compliance requirements and are committed to helping One Person Companies meet their annual compliance for OPC requirements. Our team of experts is always available to assist you with any compliance-related queries and provide timely and accurate advice. Contact us today to learn more about our OPC annual services for One Person Companies.
One Person Company
One Person Company (OPC) is a company with only one individual as its member or shareholder. OPC registration is carried out when only one member or promoter exists for the business. This type of registration is preferred by many entrepreneurs over sole proprietorship businesses due to the numerous advantages that OPCs offer.
One-Person Company Compliances
One Person Company (OPC) Compliances refer to the legal requirements that a company with a single owner must fulfill to maintain its active status as a separate legal entity. Every year, all registered OPCs must file an annual return and audited financial statements with the Ministry of Corporate Affairs (MCA), regardless of their turnover. These OPC compliance filings are used to report the company’s activities and financial data for the previous financial year. The annual filing deadline depends on the Annual General Meeting date. Failure to comply with OPC requirements can lead to the company’s name being removed from the RoC’s register and the disqualification of its directors. The MCA has enforced strict action against non-compliance in the past.
Importance of OPC Annual Compliances
Running a One-Person Company is not a simple task, as many individuals starting a company may not be aware of the mandatory compliance for OPC that need to be fulfilled. Failing to comply with these regulations can lead to hefty penalties and may result in the company and its directors facing scrutiny and further investigation.
It is worth noting that One-Person Companies are required to perform annual OPC compliance requirements from the time of their incorporation, and non-compliance can create various hindrances for the company in the form of penalties and fines. Therefore, it is essential to be aware of and comply with the applicable OPC annual compliance regulations to avoid such situations. Additionally, One-Person Companies must provide accurate financial information to shareholders and investors.
Benefits of OPC MCA Compliances
One-Person Company (OPC) compliance has several benefits that include limited liability protection, increased opportunities to get funds from financial sponsors, and continuous existence.
The following are some of the advantages of performing annual compliance for OPCs:
- Easy to raise funds from financial investors – Proper OPC annual compliances, including for OPCs, enhance the confidence of financial investors and makes it easy to raise funds from them.
- Maintains active status – Timely and proper OPC Compliance helps maintain the company’s active status.
- Accurate data collection: Annual compliance for OPCs ensures that the data collected for the OPC annual compliances are accurate and true.
- Avoids hefty penalties: Non-compliance often results in hefty penalties and fines. Proper annual OPC compliance requirements help in avoiding these penalties.
Mandatory Compliance for OPC Annual Filing
The mandatory compliance for OPC annual filing are as follows:
- Conducting Annual General Meeting (AGM): OPCs must conduct an AGM within six months from the end of the financial year. It is mandatory to hold an AGM even if only one director in the OPC exists to comply with OPC annual compliance regulations.
- Filing Financial Statements: OPCs must prepare financial statements such as balance sheets, profit and loss, and cash flow statements and file them with the Registrar of Companies (ROC) within 30 days of the AGM.
- Filing Income Tax Returns: OPCs must file income tax returns by July 31st of each year.
- Filing Annual Return: OPCs must file an annual return with the MCA within 60 days of the AGM.
- Statutory Audit: OPCs must conduct a statutory audit of their financial statements by a qualified Chartered Accountant
- Maintenance of Statutory Registers and Records: OPCs must maintain various statutory registers and records, such as the register of members, register of directors, and minutes of board meetings.
Failure to comply with these annual OPC compliances may attract hefty penalties and fines and may even lead to the deregistration of the OPC. Therefore, OPCS must ensure they comply with this mandatory compliance for OPC annual filing.
Conducting the Board Meeting
According to the Companies Act 2013, Section 173 mandates that a One-Person Company must conduct a minimum of one Board meeting annually. These meetings should be spaced out at least 90 days apart from each other and held every six months. It’s important to note that the provisions of Sections 173 and 174 regarding the quorum of meetings of the Board of Directors do not apply to a One-Person Company with only one director on its board.
Appointment of Auditor
As per Section 139 of the Companies Act, One Person or Company must appoint an Auditor. A Chartered Accountant firm shall audit the company’s accounts, and the Auditor will verify the books of accounts and issue an Audit report.
It’s important to note that the provision regarding the rotation of the Auditor does not apply to a One Person Company.
Filing of Annual Return
Every One Person Company must file their Annual Return within 180 days from the end of the Financial Year. The Annual Return should include details about the company’s shareholders or members and its directors.
The OPC compliance filing process requires the submission of Form MGT-7, the Annual Return form. OPCs need to ensure that this Form is filed within the specified timeline of 180 days from the end of the financial year.
Financial Statement
One Person Company must file financial statements that reflect the company’s finances, including the balance sheet, statement of profit and loss account, and director report to comply with OPC annual compliance regulations.
The submission of Form AOC-4 for Financial Statements is mandatory, and it should be filed within 180 days from the end of the financial year. The due date to file AOC-4 for OPC is 27th September every year.
Disclosure of Interest in Other Entities
In each financial year, the directors of the OPC must disclose any interest they have in other entities in the first meeting of the Board of Directors, using Form MBP-1.
Penalty: The director in default shall be punishable with imprisonment up to 1 year, or a fine up to Rs 1 lakh, or both.
KYC of the Director of the company
For annual compliance for OPC, individuals holding DIN as of March 31st of the financial year must submit Form DIR-3-KYC for the respective financial year by September 30th of the immediate next financial year.
Filing the Form DPT-3
The Form DPT-3 must be filed annually by every company, providing the Return of deposits and particulars that are not considered as deposits as of March 31st. The deadline for filing this Form is on or before June 30th. This is also one of the important OPC annual compliance requirements.
Penalty for OPC Non-Compliance
Failure to comply with MCA Annual Return filing for OPC can lead to a late fee of INR 200 per day, and for DIN KYC, it is INR 5000.
Preparing the Statutory Register
According to Section 88 of the Companies Act 2013, One Person or Company must maintain statutory registers. Additionally, OPC compliance with certain event-based requirements, including:
- Share Transfer
- Director Appointment or Resignation
- Change in Nominee or Bank Signatories
- Change in Auditor.
Under OPC Statutory Audit, CA Firm will give review report certification. OPC utilizes form AOC 4 to record their yearly fiscal summaries to ROC. A massive penalty of Rs 100 daily on delay in documenting Form AOC 4 is levied. Moreover, a sum of Rs. 1000 every day of default is charged from the organization, which can go the most extreme up to Rs. 10, 00,000.
Income Tax Filing
All private or public companies are obligated to make Income Tax Returns Filing. Each OPC enlisted in India needed to file ITR. ITR is one of the essential for annual OPC compliance requirements regardless of whether OPC has not.
An OPC (One Person Company) must file its income tax returns (ITR) every year by the due date, usually July 31st for individuals and September 30th for businesses. The ITR filing process involves reporting the company’s income, expenses, and deductions for the financial year to the Income Tax Department.
The OPC must also obtain and maintain a valid Permanent Account Number (PAN), which is used to identify the company for tax purposes.
GST Filing for OPC
An OPC (One Person Company) registered under GST (Goods and Services Tax) must file regular returns to comply with the GST laws. GST returns are filed online through the GST portal, and the frequency of the returns depends on the turnover of the OPC.
An OPC with an annual turnover of up to Rs. 5 crores must file quarterly returns, while those with a turnover above Rs. 5 crores must file monthly returns. The GST returns filed by the OPC include details of its sales, purchases, and taxes paid and collected. The returns must be filed within the due date specified by the GST laws to avoid penalties and interest charges.
Apart from regular returns, an OPC may also be required to file an annual return and get its accounts audited if its annual turnover exceeds Rs. 2 crores. An OPC should maintain accurate and up-to-date records of its transactions to ensure timely and accurate GST compliance. Seeking the guidance of a qualified GST professional can help an OPC comply with the GST laws and avoid any legal consequences.
Documents Required for the Annual Compliance of One Person Company
The Annual OPC Compliance requires several documents to be submitted, including:
- Receipts of purchases and sales, along with invoices of expenses incurred during the year
- Bank statements from April 1st to March 31st for all bank accounts in the name of the company
- Details of GST returns filed (if applicable)
- Details of TDS challans deposited and TDS return filed (if applicable)
- Balance sheet and profit & loss account
- Financial statements
- Director’s report
- Details of the member/shareholder
- Details of directors
These documents are necessary for OPC compliance with the legal requirements and regulations of the Companies Act 2013.
Why Choose Audit Needs for OPC Compliance?
At Audit Needs, we have a team of well-trained experts to assist you throughout the Annual Compliance for OPC process of your one-person company. Our team of experts will guide and assist you in the compliance and mandatory compliance for OPC process, ensuring your work’s timely and effective completion. If you have any queries related to Annual Compliance for OPC and related services, our experienced and trained professionals at Audit Needs are always ready to help. You can contact us, and our team of experienced professionals will provide you with timely updates about the OPC compliance process and help you complete your job efficiently.
Importance of Filing Annual Compliance for an OPC
Annual Compliance with an OPC has several advantages, including:
- Legally Compliant: Filing your annual compliance ensures that your OPC follows the rules set by the Companies Act 2013.
- Preventing Deregistration: If you miss the required filings, the Registrar of Companies (RoC) may strike your OPC off the official register, which can shut down your business.
- Building Trust and Credibility: Regular and timely filing shows that your company operates transparently and responsibly. Timely filing of the required returns and documents boosts your credibility with investors, banks, and other business partners.
- Avoiding Fines and Penalties: Missing deadlines for compliance can lead to fines, which can impact our business.
- Financial Transparency: By submitting your financial statements, you provide a clear picture of your company’s financial health, which is crucial for planning, getting loans, or attracting potential investors.
- Personal Assets Protected: Filing the necessary paperwork ensures that the limited liability protection of your OPC is maintained, which means your personal assets are kept safe from business risks.
OPC Annual Compliance Checklist
A One Person Company (OPC) is required to fulfil specific annual compliance obligations as outlined in the Companies Act, 2013, to avoid penalties or deregistration. Use this yearly compliance checklist to guarantee your One Person Company (OPC) stays compliant with Indian laws:
- Hold an annual general meeting (AGM) six months after the end of the financial year.
- File Form AOC-4 along with the ROC 180 days after the end of the financial year.
- Form MGT-7: File Form MGT-7 with the ROC 180 days after the end of the financial year.
- The director of an OPC is obligated to submit the MBP-1 form annually. The form discloses the director’s interest in any other entity.
- Hire a working Chartered Accountant to be the Auditor.
- File the Income Tax Returns by September 30 of every financial year.
- Make sure all files and payments connected to GST are current.
- Maintaining compliance with TDS and PF/ESI rules will help you.
- Annually, schedule at least one Board meeting spaced at least ninety days apart.
- Keep all required records kept current, including the lists of directors and members.
- Form DIR-3 KYC for Directors: File Form DIR-3 KYC for every director by July 31 of every year.
OPC Annual Filing: Mandatory Compliances
Being a One Person Company (OPC) in India comes with four yearly filing-mandated compliance obligations:
1. Every OPC must submit its Annual Return (Form MGT-7) to the ROC within 180 days after the end of the financial year. This form includes the following information:
- Details about the company, such as its name, registration number, and office address.
- Information about the shareholder.
- Change in Shareholding pattern (if any)
- Director’s Information
- Declaration about the Financial status of the Company.
2. OPCs have to submit their Financial Statements (Form AOC-4) to the ROC within 180 days after the end of the financial year. This form contains the following information:
- Financial Statement including Balance Sheet, Profit & Loss Statement, Cash Flow Statement.
- Director’s Report
- Certification by the Director
- If there have been any transactions between the company and its related parties, such as directors or their family members, they should be properly disclosed.
3. OPCs have to name a professional Chartered Accountant as their Auditor and submit Form ADT-1 with the ROC. This form is used to appoint or re-appoint an auditor of the company, and it contains the following information:
- Details of the Company, including its registration number and registered office address
- Detail of the Auditor- its name, address, membership number, and details of whether the auditor is firm or not.
- Consent of the Auditor.
4. Moreover, the OPCs have to submit their Income Tax Returns by September 30 of every financial year.
Documents Required for OPC Annual Compliance Filing
Get the following key documents to guarantee seamless yearly filing for your One Person Company (OPC):
1. PAN, Corporate Identification Number, Registered Office Address of the Company.
2. List of the activities/Business activities or operations carried out by the Company during the financial year.
3. Name, address, and contact details of the sole shareholder.
4. Shareholding details (even though there is only one member, this still needs to be recorded).
5. Name, address, and contact details of the sole director of the OPC.
6. Director Identification Number (DIN) of the director.
7. Dates indicating the start and end of the company’s financial year (usually from April 1 to March 31).
8. A declaration from the Director of the company confirming the company’s compliance with the Companies Act, 2013.
9. Declaration regarding Directors’ interests in the company, if applicable.
10. List all securities the corporation has, including any preference shares, convertible securities, etc.
11. List of shares and debentures issued during the year, including changes in the issued capital.
12. Detailed document containing information about the management of the company, such as new appointments and resignations.
13. A statement showing the company’s financial position, including assets, liabilities, and equity, as of the end of the financial year.
14. A summary of income, expenses, profits, and losses for the financial year.
15. A report showing the inflows and outflows of cash in the business (not mandatory for OPCs unless required by accounting standards).
16. A report signed by the director (in OPC, this is usually the sole shareholder/director) confirming the accuracy of the financial statements.
17. An independent auditor’s report confirms that the financial statements comply with accounting and legal standards (if the company has appointed an auditor).
18. A copy of the AGM minutes or signed resolutions documenting approval of the financial statements and auditor’s appointment.
19. The signed resolution passed by the sole member or the director approving the financial statements for the year
20. A copy of the filed ITR form for the relevant year confirming the company has paid its taxes.
21. A copy of the audited financial statements (Balance Sheet, Profit & Loss account) submitted with the Income Tax Return.
22. For Director KYC and Shareholder KYC norms:
- Aadhar card or Passport of the Director
- PAN Card of the Director
- Proof of Address of the Director
- Recent two photographs of the Director
23. Any changes in the shareholding pattern throughout the year.
24. Details of Any Securities Transfer (if applicable).
OPC Annual Compliance Filing Procedure
1. Compile all the required papers and documents, including compliance certifications, shareholder information, and financial statements.
2. Hire a certified Chartered Accountant to serve as the OPC auditor. This stage is crucial for correct financial reporting.
3. Though not required of OPCs, conducting the Annual General Meeting (AGM) is advised for openness and good governance.
4. File Form MGT-7, the Annual Return. It has to be submitted within 180 days from the financial year-end with the ROC.
5. File Form AOC-4, which consists of the reviewed financial records, has to be filed within 180 days from the financial year-end.
6. Submit the Auditor’s Report, along with the financial statements, to substantiate the accuracy and truthfulness of the accounts.
7. File Income Tax Return (ITR-6) by 30th September of every financial year.
8. Ensure compliance with all relevant duties relating to:
Penalties for Not Filing Annual Compliance for OPC
Compliance | Penalties and Consequences for untimely submission |
Annual Return: MGT-7 |
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Financial Statements: AOC-4 |
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Failure to comply with the Annual Filings |
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Why Choose Audit Needs for OPC Compliance?
As a leading online legal services provider in India, Audit Needs focuses on One Person Company (OPC) registration and compliance. Our industry-specific uniqueness comes from our dedication to quality and client satisfaction.
- Competent Group of Professionals: Our seasoned OPC compliance team is committed to helping you at every stage of the compliance process. We make sure you receive the help you need as we appreciate the complexity involved.
- Prompt and Correct Guidance: We help you negotiate legal obligations confidently by offering quick and accurate compliance-related advice. Being proactive helps reduce non-compliance risk.
- Customized Answers: At Audit Needs, we provide tailored solutions that meet your OPC’s particular requirements. Our services are designed to match the needs of clients and their needs to guarantee the best results.
- Affordable Services: We believe in giving the company the best result, and therefore, our services are reasonably priced so that you can focus on the growth of your business, not the finances.
- Hassle-free Compliance Process: Our staff manages all paperwork and legal requirements so you may concentrate on expanding your company.
For your OPC compliance requirements, choose Audit Needs for a smooth, encouraging path to maintaining your company’s legal status.