Roc Compliance in Case of OPC

One Person Company:

As per the Companies Act, 2013, One Person Company (OPC) can be formed with a single person itself. The person can be a director and a shareholder in the company simultaneously. Compliance for OPC is required to be maintained with the Companies Act, Income Tax Act, Registrar of Companies (ROC) and all other applicable regulations. Here we are discussing some of the important compliance for OPC like annual filing return, financial statements, Income Tax Return filing, compliances after company registration etc. in India.

Compliance for OPC:

  1. Compliance for OPC with Companies Act, 2013:

Under Section 173(5) of the Companies Act, 2013, the One Person Company is required to hold and conduct at least one board meeting in the first six months of the current financial year. Which means that one board meeting is to be held in between January to June and another board meeting from July to December. The gap between two consequent meetings must be more than 90 days and above. But if the company is presently having only one director then the requirement to hold such board meeting does not arise.

Under Section 139(1) of the Companies Act, 2013, the OPC is required to hold the Annual General Meeting in order to appoint a Statutory Auditor for the company to fulfill the compliance for OPC. The appointed auditor in the AGM holds the said office from the day of his/her appointment in the first concluded AGM till the conclusion of the sixth AGM of the company.

  1. Financial Statements of One Person Company under the Companies Act, 2013:

Under Section 137(1) of Companies Act, 2013 the OPC is required to adopt its Financial Statements in the board meeting which has to be signed by all the directors in the company.

After it has been signed by the board of directors, the financial statements must be audited and then must be filed in Form AOC-4 through electronic mode with the Registrar of Companies within 180 days from 31st March of each fiscal year. However, as per the Compliance for OPC, it is not required to prepare or maintain any cash flow statements, that means the financial statements of OPC will only cover aspects like the profit and loss account, report from auditor, notes o account and balance sheet of the company.

A practicing, chartered accountant is to be appointed as the first auditor in the OPC within 30 days from the date of its registration or incorporation, irrespective of its turnover and the paid- up capital.

  1. Compliance for OPC under Income Tax Act, 1961:

In Form ITR-6, the One-person company is required to file their income tax return for a particular financial year. This is to be done with the tax department on or before 30th September of the following fiscal year. If Central Board of Direct Taxes (CBDT) have extended the due date for filing then, it will be considered as the last date of filing income tax return instead of 30th September of the current financial year.

Additionally, if the turnover of such a company exceeds the limit prescribed in the Section 44AB of the said act, then its accounts must be audited in order to complete the requirements of compliance for OPC.

  1. Annual return filing by One Person Company with the Registrar of Companies:

The annual return must be provided as an attachment with the Form MGT-7 to be filed with the ROC, by One Person Company. Such annual return is to be signed by the appointed company secretary in the company or else if no company secretary is appointed in the company then the director in the company must sign the same.

  1. Other Compliances for OPC:

In addition to all the above compliance for OPC, it also requires to comply with GST regulations, GST return filing regulations, PF regulations, TDS regulations and ESI regulations and other required compliances.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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