Annual Compliances For OPC
What is Annual Compliance for One Person Company?
One Person Company is required to maintain compliance as per Income Tax Act and Companies Act. It mainly includes filing of income tax return and annual return. It is easy and cost efficient in terms of compliance to register as an OPC as compared to public or private.
Why we need to do annual compliance of OPC?
As every OPC have to intimate ROC regarding the income and expenditure and other details of the company annually. we have to do the compliances and if we fail to do the compliance then the penalty is imposed for the same.
What are the forms required to be filed for Annual Compliances?
Form AOC-4 for Financial statement and form MGT-7 for annual return are required to be filed for Annual return.
What are the Due date to file forms?
The financial statement of OPC are to be filed within 180 days from 31st March of the financial year and annual return within 60 days from the completion of AGM.
Documents Required for Annual Compliances For OPC
Process Involved
Step 1
Documentation
Step 2
Finalization of Balance Sheet and Income Tax return
Step 3
Preparation of Notice, Board Resolution and Minutes of AGM
Step 4
Form ADT-1
Step 5
Form AOC-4
Step 6
Form MGT-7
FAQ'S
- Is there any Tax Flexibility and Savings in OPC?
- In an OPC, it is possible for a company to make a valid contract with its shareholder or directors. This means as a director you can receive remuneration, as a lessor you can receive rent, as a creditor you can lend money to your own company and earn interest. Directors’ remuneration, rent and interest are deductible expenses which reduces the profitability of the Company and ultimately brings down taxable income of your business.
- What are the MINIMUM REQUIREMENTS ?
- Minimum 1 Shareholder • Minimum 1 Director • The director and shareholder can be same person • Minimum 1 Nominee • Minimum Share Capital shall be Rs. 1 Lac (INR One Lac) • DIN (Director Identification Number) for all the Directors • DSC (Digital Signature Certificate) for all the Directors
- What is the incorporation process?
- After ROC's approval for name of the Company, filing all the Incorporation documents with the ROC • Online uploading of e-Forms • Payment of Registration fees • Receiving Incorporation Certificate
- What is One Person Company?
- One Person Company a new company structure, contains the benefits of sole proprietorship and corporate status. It has only one member, as the Member cum Director and a nominee.
- How much capital do I invest to start a One Person Company?
- The minimum capital requirement is Rs. 1,00,000/- but this amount differ from your investment. Authorised capital and investment are not one and the same. You can invest as many as you can, but when you want to incorporate a company legally, it has to be started with Rs. One lakh as capital.
- Who can be a nominee for a One Person Company?
- Nominee can be anyone, such as your spouse, father, mother, daughter, brothers, sisters etc., but they should hold proper identity proofs such as PAN card, Voter id or Passport or Driving License etc., in order to be appointed as Nominees for One Person Company.
- Can form more than one One Person Company?
- No, you are not allowed to form more than one OPC and nominee in your company cannot be appointed as nominee in any other One Person Company.
- Can Foreign Direct Investment allowed for One Person Company?
- No, FDI is not allowed for One Person Company, if it does then it will lose its very nature of One Person Company.
- Can a One Person Company converted into Private Limited Company?
- Yes, it can be converted into Private Limited Company, if the One Person Company has exceeded the threshold limit by filing necessary forms.
- How can a One Person Company hold a Annual General Meeting?
- No, a One Person Company exempted from holding Annual General Meeting.
- How can a One Person Company converts itself into Private Limited Company?
- One Person company can convert itself to Private Company, when the paid up capital exceeds Rs. 50 lacs or its average turnover exceeds Rs. 2crores for the relevant period.
