All Compliances Of OPC

What is a One-Person Company (OPC)?

A One-Person Company (OPC) is a distinctive business entity owned and managed by a single individual. Defined under Section 2(62) of the Companies Act 2013, an OPC has only one member who retains complete control and ownership. In India, OPCs can only be registered as Private Limited Companies, thereby adhering to the same legal provisions and compliance requirements as other private firms, which include specific annual obligations.

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Advantages of a One-Person Company

Easier Fundraising: OPCs attract interest from financial institutions, simplifying funding acquisition.
Limited Liability: OPCs provide separate legal status, limiting the member’s liability to their investment.
Simplified Setup: Registration is streamlined, as only one member serves as both director and member.
Straightforward Management: Decision-making is efficient, avoiding potential conflicts.
Perpetual Succession: A nominee must be appointed to ensure business continuity in case of the member’s retirement or death.
Compliance Exemptions: The Companies Act 2013 offers certain exemptions for OPCs, enhancing operational efficiency.

Importance of OPC Compliance

Compliance with annual requirements is essential for maintaining the legal status of an OPC. At India Filings, we recognize the importance of these obligations and are committed to assisting OPCs in fulfilling their compliance needs. Our expert team is available to provide guidance and support for all compliance-related inquiries. Contact us to learn more about our tailored services for OPCs.

Annual Compliance Requirements for OPCs

OPC compliance involves various legal obligations necessary to uphold the company’s status as a separate legal entity. Each registered OPC must submit an annual return and audited financial statements to the Ministry of Corporate Affairs (MCA), regardless of turnover. Non-compliance can result in serious penalties, including removal from the Registrar of Companies (RoC) register.

Financial Year: Runs from April 1 to March 31 each year.
Board Meetings: OPCs must hold two board meetings per year, with a minimum 90-day gap.
Commencement of Business: File Form INC-20A within 180 days of incorporation.
Director Interest Disclosure: Use Form MBP-1 at the first board meeting or when changes occur.
Director’s Declaration: Form DIR-8 must be submitted annually by directors.
Record Maintenance: Maintain statutory registers, minute books, and other essential records.
Financial Statements: File Form AOC-4 within 180 days of the financial year-end.
Annual Return: File Form MGT-7 within 180 days of the financial year-end.
Income Tax Return: Must be filed annually, typically due by September 30.
KYC for Directors: Directors must submit Form DIR-3 KYC to the RoC by September 30.
Auditor Appointment: An auditor must be appointed at least every five years.
MSME E-Form: This return must be filed semi-annually to report pending payments to MSME vendors as of the end of each half-year. Only payments that have been pending for more than six months should be included.

Deadlines:

For the period from October to March: Due by April 30
For the period from April to September: Due by October 31

Form DPT-3: Must be filed annually regarding outstanding loans as of March 31.
Exemption from Annual Return Filing: OPCs are not required to file an annual return within 60 days of the AGM.

By adhering to these compliance requirements, One-Person Companies can effectively manage their legal obligations while enjoying the advantages of their unique structure.