One Person Company (OPC)

One Person company (OPC)

What is a one-person business?

 

A one person company is defined in Section 2(62) of the Companies Act as a company with only one member. Furthermore, a company’s members are nothing more than subscribers to its memorandum of association or shareholders. As a result, an OPC is effectively a company with only one shareholder as a member.

Criteria for OPC Eligibility for Annual Compliance

 

 

If you are a one-person business, you must file the required annual compliance. Other than being a One Person Company, there are no eligibility requirements.

Documents required for filing OPC Annual Compliance

 

 

The following documents are required for annual compliance:

     The Company’s Directors’ Pan Card

     Identity Proof for the Company’s Directors

     Association Memorandum

     Articles of Incorporation

OPC Annual Compliance Filing Procedure

 

 

 The following is the procedure for filing the annual compliance for OPC:

Data Collection for Compliance Filing

Begin gathering the information needed to file the One Person Company’s annual compliance report.

Online Compliance Application Form

Go to the MCA’s official website and begin filling out the required compliance forms according to the ministry’s guidelines.

Submission and Evaluation of Applications

Submit your application and wait for a notification that your compliance has been processed.

What Are the Advantages of Compliance by a Single Person?

 

 A One Person Company has several advantages, including:

     Liability protection is limited.

     Increase the likelihood of receiving funding from financial sponsors and,

     Existence indefinitely

To boost investor confidence, OPC members must adhere to the following requirements:

 

     The Companies Act,

     GST and income tax

     The annual compliance requirement for OPC has now been increased beginning in

2018. Regardless of ROC compliances, companies must submit annual filing forms by

September 30th each year. The regular fundamental has now been expanded for OPC Companies beginning in 2018. The benefits of performing annual compliances for a One Person Company are listed below.

     Simple To Raise Support From Financial Speculator- Proper annual compliances of a company, including OPC, increase financial speculator confidence and make it simple to raise support from a financial speculator.

     Maintains Active Status- Proper and timely compliance aid in the company’s continued existence.

     Annual Compliances by the One-Person Company ensure that the data collected for compliances is accurate and true.

     Avoids Hefty Penalties- Non Compliances are frequently met with hefty penalties and fines. Annual compliance helps to avoid hefty penalties.

     To be filed following the incorporation of an OPC

Annual Filings for Compliance with a One-Person Company:

 

 

MBP 1: Form MBP-1 is to be filed by the directors in one person company compliance to disclose their interest in other companies yearly on the first Board Meeting of each year or the instance of a change in the OPC’s Director.

DIR-8: Every director in one person company compliance is required to file Form DIR-8 at the time of his/her appointment to ensure that he/she is not disqualified/barred from acting as a director of a company.

DIR-3 KYC: In one person company compliance, directors with an active DIN (Director

Identification Number) are required to file DIR-3 KYC annually in accordance with the

Companies Rules, 2014. Failure to submit DIR-3 KYC results in an inactive DIN status on the MCA portal. Please keep in mind that if DIR-3 is deactivated, no Form of annual compliances for one-person companies can be filed.

ADT-1: In a one-person company, an auditor must be appointed within fifteen days of holding an Annual General Meeting for a five-year period.

MGT-7: All one-person companies must file their annual returns within sixty days of holding the Annual General Meeting. This can be accomplished by submitting MCA Form MGT-7. Failure to file annual returns results in a Rs 100 per day penalty from the due date of non-filing.

AOC-4: Under one person company compliance, an OPC is required to file its financial statements, i.e., Profit and Loss Account and Balance Sheet, as well as the Director Report, by filing Form AOC-4 within sixty days of the Annual General Meeting. Failure to file Form AOC-4 results in a Rs 100 per day penalty.

Auditor Appointment: In order to comply with the OPC, the director must appoint an auditor within thirty days of the incorporation of the company.In order to comply with OPC, the director must appoint an auditor within thirty days of the company’s incorporation. A single-person company that fails to appoint an auditor faces a Rs 300 monthly penalty. Furthermore, the company will not be permitted to begin operations. He/she must remain in the office until the end of the first AGM. Form ADT-1 is not required for the appointment of the first auditor.

Other Annual Compliance for a One-Person Business

 

 

Directors’ Report: A Director’s Report is a financial document required by the Companies Act, 2013 that explains to shareholders the company’s affairs, the nature of the business, and the scope of one person company compliance.

Financial statements and other relevant documents are circulated:

In one person company compliance, the company must send all financial records to its members, including the Financial Statement, Directors’ Report, and Auditors’ Report, at least 21 days before the AGM.

Statutory Register: In order to comply with the OPC, the company must keep mandatory registers such as the Director’s register, the Director’s shareholding register, and the Transaction register.

Section 173(5) of the Companies Act, 2013: In order to be in compliance with this Act, a company must hold at least one board meeting in each half of the calendar year. Furthermore, the time interval between two board meetings cannot be less than ninety days.

This requirement will not be met if an OPC has only one director.

 

Statutory Audit: According to Section 139 (1) of the Companies Act of 2013, an OPC is required to hold its first AGM within fifteen days of its incorporation. A subsequent auditor is appointed to oversee a company’s fair dealings in terms of its financial position. He or she is appointed at the first AGM and remains in the same position until the sixth AGM. According to the Companies Act of 2013, a subsequent auditor is appointed by submitting Form ADT-1.

Annual filings with the Registrar of Companies: The most important forms under one person company compliance that must be filed with the Registrar of Companies are MGT-7 and AOC-4.

Income Tax Return (ITR) Filing: In one person company compliance, ITR filing must be completed on or before September 30th of the current fiscal year. A tax audit will be mandatory if an OPC’s annual turnover exceeds Rs 1 crore. Appointment of Directors: In one person company compliance, each person to be appointed as a Director must provide his/her consent in Form DIR2 and such consent must be filed with the Registrar of Companies (ROC) in Form DIR12 within thirty days of appointment.

Why use Srv Associates?

 

Tracking of Compliance

 

We at Srvassociates will provide you with comprehensive guidance on all applicable compliances to your company and will file each Compliance on time. Manage OPC Company’s Annual Compliance with Srv Associates.

Professionals are only a mouse click away

 

 

Our experienced professional team, led by Chartered Accountants, Company Secretaries, Lawyers, and Influencers with extensive experience in their respective fields, will be available to handle your company’s compliances. Our professional team will ensure that you can focus on your core business while we handle all governmental compliances for your company.