annual compliance for one person company

Annual Compliance for One Person Company

One person company is a company with only one person as a member. It is introduced in Companies Act, 2013 to encourage self-employment within the provisions of a company. Any person who is an Indian citizen or resident of India can become a director or shareholder and incorporate an OPC. It is easy and cost efficient in terms of compliance to register as an OPC as compared to public or private company. As there is only one member in the company, there is no need to conduct an AGM. It can be passed by entering details in minutes’ book. They are also exempt from making rotation of directors as well as formalities related to board meeting are also reduced. Although there are few required ROC filing for OPC.

Incorporating an OPC is just not enough; following are the few things to be done post incorporation of an OPC:

  • Opening a bank account
    • Document required to open bank account is PAN card, copy of certificate of incorporation, MOA and AOA.
    • Board resolution need to be passed for opening and operating company bank account.
  • OPC need to appoint its first auditor within 30 days of incorporation.

Annual Compliances for One Person Company

  • Notice of interest by director

    • Director of the company in first board meeting will disclose his interest in other entities in every financial year.
    • Director must notify about change of his interest.
    • Form MBP-1 needs to filed for such notice.
  • OPC Annual filing Filling of annual returns

    • OPC should file its annual return for the period ending on 31st March within 60 days of completion of AGM.
    • They need to file e-Form MGT-7 to Registrar of Companies for filing of annual return.
  • OPC Annual filing – Filing of annual accounts

    • OPC is required to file its balance sheet, profit and loss account and directors as an attachment to the form.
    • It should be filed within 180 days from closing of the financial year by form AOC-4 to Registrar of Companies.
    • Directors’ report should contain all the necessary information and should be signed by one director.
  • Appointment of Auditor

    • Auditor will be appointed for 5 years and form ADT-1 is required to be filed for such appointment with the ROC.
  • Meetings

    • OPC should conduct at least one meeting in each half of the calendar Year and the gap between these two meetings should not be less than 90 days.
    • The resolutions passed, at any general meeting should be communicated by the member to the company and date of the meeting would be the date on which it is entered in the Books of Company.

Some of the necessary ROC filing for OPC are to file the annual accounts, annual returns and other necessary forms within stipulated time, to avoid penalties. As per the provisions, even if your company is not running any business it needs to file annual return as well as the annual accounts. Compared to other form of companies, it is easy to register and fulfill OPC compliances. So, if you are alone and want to own a business, always opt for OPC to avail benefits given by government.

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