One Person Company Compliance - OPC Annual Compliance

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Annual Compliances for One Person Company

Are you planning to run a one-person company and not aware of the annual compliances for a personal company? Then don’t worry JR Compliance is here to serve you the entire information about annual compliances for one person's company.

In our country, OPC can be counted as only a private limited company and that is why all the legal activity, whatever applies to private limited companies, is also implemented on one person company. So, if we are talking about annual compliances for a personal company then we should first be clear about what a one-person company is.

What is a one-person company?

A one-person company is managed by a single person and if we talk about its members then it contains only one person that is a shareholder of the company as a member of the company. OPC Registration Online can only be done when it has a single member or a single supporter of the company. Hence, businessmen go for the OPC rather than a sole proprietorship because of the multiple benefits OPC serves.

Why is it mandatory to adhere to annual compliances for OPC?

It is not easy or simple to run a one-person business. Many people who consider starting a business are unaware of the vital and mandatory compliances, and failing to comply with those compliances can result in the company paying a hefty penalty. Aside from the penalty, the corporation and its directors may face additional investigations and undertakings.

It is also worth noting that a One-Person Company is eligible to conduct annual compliances as soon as it is formed. Penalties and fines for noncompliance cause several problems for businesses. To avoid such occurrences, it is critical to be aware of and follow the applicable compliances.

Benefits of Annual compliance for a one-person company :

The annual compliance requirement for OPC has now been raised as of the year 2018. Regardless of ROC compliances, companies must submit annual filing forms by September 30 each year. The standard essential has been enhanced for OPC Companies as of the year 2018. The benefits of doing annual compliance for one-person companies are listed below. 

  • Easy to increase support from financial investors

Complete annual compliances of a company including a personal company increase the confidence of financial investors and make it easy to raise support from financial investors or traders.

  • Serves active status 

Complete and on-time compliances help in maintaining the active status of the company.

  • Make Sure that Collected Data is Accurate 

Annual compliances from OPC ensure that the collected data for the compliances are accurate and real.

  • Avoids Heavy Penalty 

Proper and real compliance can help to avoid heavy and sturdy penalties.

Clarify the procedure for annual compliance for OPC :

Annual compliances for one person company are-

  • Board meeting

All the Directors should conduct at least one meeting every six months. There should not be less than 90 days of gap between 2 meetings under section 173 of the Company Act, 2013. Hence, a one-person company should hold at least 2 meetings per year

NOTE: If there is just one director on the board of an OPC, Sections 173 and 174 (Quorum of Meeting of Board of Directors) do not apply.

  • Auditor’s Appointment

One person company must make an appointment of the auditor as per section 139 of the Companies Act, 2013. It should get its account audited by a CA firm and CA where the auditor may verify the account books and issue an audit report.

NOTE: OPC is not covered by the provision regarding the rotation of auditors.

  • Filing Annual Returns

In 180 days from the end of the financial year, it is compulsory to file an annual report for every one-person company. The specific annual return should include the information about-

  • The company’s members or shareholders, and 
  • The Director
  • The required form to submit while filing annual returns is mentioned below.
  • Form MGT-7 (Annual Return)- It is required to file an annual returns report for every one-person company within 180 days from the end of the financial year.
  • Financial Report

The Company must also submit Financial Statements, which cover the Company's finances and comprise the following:

  • Director report, 
  • Balance sheet, and 
  • Statement of profit and loss.
  • Financial Statements Form AOC-

Within 180 days after the end of the fiscal year, Every One Person Company must file its balance sheet, together with a statement of profit and loss and a director report.

  • An Interest in Other Entities Disclosure

The OPC directors are required to report their interests in other entities in Form MBP-1 at the first Board of Directors meeting of each fiscal year.

Penalty:- Infractions by the Director will result in a maximum one-year sentence in jail.

  • KYC of the Company’s Director

Every person who had a DIN as of the financial year's 31st March was obliged to complete Form DIR-3-KYC for that financial year by the deadline of 30 September of the next fiscal year.

  • Form DPT-3 Filing

Each year, a DPT-3 form must be submitted on or before June 30th to report deposits and details that as of the previous March 31st were not deemed deposits.

  • Preparing for Statutory Register

Every one-person company must maintain the statutory registers under section 88 of the Companies Act, 2013. There are also precise event-based compliances that an OPC is required to follow.

  • Share transfer.

  • Director appointment or resignation.

  • The nominees of bank signatories have changed.

  • Changes to the auditor.

    Documents required for the Annual Compliances for one person company:

A one-person company requires further documents for annual compliances that are mentioned below:-

  • receipts for sales and purchases made during the year, as well as invoices for expenses incurred.
  • Details of bank statements for all accounts held in the company's name from 1 April to 31 March.
  • specifics of the submitted GST returns (If Any).
  • Information about deposited TDS challans and filed TDS returns (If Any).
  • Financial statements.
  • Audited balance sheet and P&L account.
  • Report of Directors.
  • Member’s details.
  • Director’s details.

Our Role in Filing Annual Compliances for One-Person Company:

  • Our Annual compliance process consultants will assist you in obtaining annual compliance for one-person companies.
  • We will assist you in the Annual compliance documents submission and evaluation.
  • JR Compliance has a professional team that will coordinate with the Annual compliance officials for inspection, which is an integral part of the annual compliance process.
  • We guarantee to provide you with proper acknowledgments and follow-ups by being in direct coordination with Annual compliance.
  • We assure you that provide you with quality services by ensuring a professional approach to filing Annual compliance.
  • In case of any query, we will provide the finest solution to your concern regarding how to get Annual compliance for one-person companies.

Conclusion :

Finally, as previously said, annual compliance for a one-person company is required to operate every OPC in India. As a result, without obtaining annual compliance, the one-person company may suffer repercussions such as the deletion of the company name, payment of a penalty, and the inability to function in India.

Our annual compliances for one personal company in India consultant team will guide you regarding the online company registration process to make the process hassle-free and will remove all challenges as we have experience of 8+ years. Above all, we strive to avoid any inaccuracy.

Thus, for expert and professional services, contact us immediately.