ONE PERSON COMPANY COMPLIANCE
The One Person Company was introduced in the Companies Act to make sure a sole entrepreneur could start and manage a legal entity with limited liability. It was brought into existence to help all those enterprises with a turnover less than Rs. 2 crore. There are certain compliance requirements for an OPC which we will look at here.
After the registration, it is advisable for one to purchase the following stationery:
All companies, including an OPC, are required to place the name of the company outside their place/location of work.
Company Rubber Stamp:
The rubber stamp is required for the execution of various legal documents related to banking functions and board resolutions. A round rubber stamp and a straight rubber stamp bearing the name of the company and its director can be purchased.
The name of the company and address must be printed on all documents that go out from the OPC including invoices, notices, circulars, and all other official documents of the OPC.
Opening of Bank Account
The process is fairly simple in the case of an OPC. Since it is recognised by the Companies Act and is a corporate entity, no additional tax forms and registrations are required. According to the Reserve Bank of India’s KYC regulations, the following documents are required for opening a bank account:
1. Self attested copies of the OPC incorporation certificates
2. Memorandum of association of OPC
3. Articles of association of OPC
4. A resolution to open a bank account in the name of the OPC
5. A copy of the PAN allotment letter
6. ID proof of the director
7. Telephone bill
It is imperative to note that all the documents mentioned above are to be self attested with the OPC seal and the director’s signature.
Within 30 days of incorporation of the company, it needs to appoint an auditor (a chartered accountant) for auditing the financial documents and statements of the OPC
Unlike all other companies, an OPC need not have a general meeting annually. Since the board of directors has just one person, a resolution passed by that one director is acceptable and can be entered into the minutes. This signed resolution by the sole director is considered the general meeting of the firm. Provisions related to the quorum for meetings of Board do not apply to an OPC.
Financial Documents Required
All companies, including OPCs, are required to submit the following documents with the registrar of companies (ROC):
1. Balance sheet at the end of the financial year;
2. Accounts of profits and losses;
3. Cash flow statement of the financial year;
4. Records of any change in equity;
5. Any document that needs an explanatory note.
In case of a small company, dormant company or an OPC, the need for a cash flow statement is not mandatory.
A one Person Company (OPC) needs to fulfill the following compliance.
• Financial Statement filing with the Registrar of Companies (ROC) in Form AOC-4.
• Annual Return with the ROC in form MGT 7. An extract of the return in Form MGT-9 also forms part of the Board Report.
• Income Tax Return with the Income Tax Department in Form ITR-VI.
Who needs to do it?
As per Company Law, every One Person Company needs to comply with it. The return needs to be signed by the Company Secretary. In absence of a Company Secretary, the director of company can sign the return.
What Documents do I need?
For a smooth compliance process, you need to provide the following documents.
A. MGT 7 Filing
List of main business activities
Details of shares and shareholding
List of debentures and loans
Details of other securities held by the company
B. AOC 4 Filing
Profit and Loss Account
Notice of AGM
C. ITR VI Filing
Purchase and Sale invoice.
PAN of the company
Copy of TDS Challans/deposits (if any)
Copy of VAT/Service Tax Returns (if any)
Bank Statement for the year
Credit Card Statement (if any)
What is the fee?
As per the fee schedule under company law, the filing fee starts from Rs. 2000.
The professional fee for OPC compliance starts from Rs. 10000.
What is the Timeline?
Different returns have different due dates.
A. Annual Return
You need to file the annual return within 60 days of holding the Annual General Meeting (AGM). If the AGM did not take place, you need to file the return within 60 days of the date on which AGM should have taken place.
B. Financial Statements Return
For AOC-4, the due date is within 180 days from the end of Financial Year. This means that the last date for filing AOC 4 will be 30th October of the following financial year.
C. Income Tax Return
For ITR-VI, the due date is 30th September of the Assessment Year.
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