OPC Compliances

An OPC requires to follow certain compliances after incorporation which includes bank account, company PAN/TAN, appointment of an auditor and mandatory compliance includes meetings, filing of annual return, financial return and income tax return.

Mandatory OPC Compliance

Some mandatory compliances are required to file by the OPC with MCA and Income tax department as per the Companies Act, 2013 and Income Tax Act, 1961respectively. In addition to the mandatory compliances, post incorporation compliances are also required to comply.

After Incorporation Compliances for One Person Company

• Common Seal

  Two rubber stamps are required one round shape engraved with the company’s name and another rubber stamp with the name of company along with the designation of authorised signatory. These stamps are required to authenticate the further documents for compliances.

• OPC Letterhead

  Once the OPC incorporated some official documents are required to be prepared. Letterhead, invoices, notices and every official document related to the company must contain the name and the registered office address of the company.

• Opening Current Bank Account

  A current account must be opened in any nationalized or private bank as it is one of the first requirements after incorporating a company for carry the transactions in the name of the company. Now MCA also facilitate to open company bank account to reduce the paperwork and smoothen the services.

• PAN/TAN Application

  Application for PAN card must be applied in form 49A online on the NSDL Portal. It should be duly signed by one of the director of the company. PAN card of the company is required to open a bank account in the name of the company.

• Appointment of Statutory Auditor

  Like any other company, One Person Company is also required to appoint a statutory auditor within 30 days from the date of incorporation of the company. The director of the company needs to appoint an auditor, a practising chartered accountant for auditing the financial accounts of the company. Form ADT-1 must be filed with the MCA within 15 days from the date of appointment of the auditor for subsequent appointment of the auditor. No form is required to file for first auditor appointment.

• Allotment of securities

  Post incorporation of the company, share certificates are required to be issued which evidencing the ownership of the company. Every share certificate must be duly signed by the director or authorised person and have impression of common seal of the company.

Regular OPC Compliances

• Meetings

  After incorporation of the company, first meeting is to be conducted within 30 days from the date of incorporation.
  As per the provisions of section 173 of the Companies Act, 2013, every one person company require to hold at least one board meeting in each half of the calendar year and the minimum gap between these two meetings must be 90 days.
  In case company has only one director, no need to conduct any meeting. Pass the resolution and enter in the minutes book is sufficient to satisfy the requirement.
   

• Filing of Financial Statement

  Every OPC required to file copy of financial statement in prescribed form AOC-4 within 180 days from the closure of financial year. The following financial statements must be filed in form AOC-4

1. Balance sheet (end of the financial year)
2. Profit & Loss Account
3. Statement of changes in equity, if any
4. Explanatory note (attached with any document)
   
   The financial statement must be signed by one director and cash flow statement is not considered as financial statement.

• Filing of Annual Return

  Every OPC shall prepare annual return containing the particulars at the end of the financial year and file with the ROC in the prescribed form MGT-7 before 30th September every year. The annual return should be sign by the company secretary of the company and if in case there is no company secretary then by the director of the company.

• Income tax Return

  For taxation the same provisions are applicable on the OPC which are for private company because Income Tax Act, 1961 is silent about the OPC concept. Like in private company income is taxed at the flat rate of 30% in addition to the education cess plus surcharge as applicable. A provision of MAT (Minimum Alternative Tax) is also applicable to the OPC.

• ESI Registration

  Every business entity including one person company required to get registration under ESI Act, 1948 (Employees’ State Insurance Act) if company employs more than 10 employees.

• Service Tax or GST Return

  Service tax return or GST return must be filed by the OPC if they have service tax registration or GST registration. Service tax returns are due quarterly while GST return due date changes from state to state.