{"id":1407,"date":"2019-11-27T12:14:32","date_gmt":"2019-11-27T12:14:32","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=1407"},"modified":"2021-04-02T14:38:50","modified_gmt":"2021-04-02T09:08:50","slug":"compliance-and-annual-filing-requirements-of-opc","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/","title":{"rendered":"What are The Compliance and Annual Filing Requirements of One Person Company?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Annual filing and compliance requirement of a One Person Company is similar to that of a\u00a0<a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Private Limited Company<\/strong><\/a>\u00a0or any other same form of entity. However, some of the requirements differ in a One Person Company from other types of entities obviously because they are different types of business models. In this article, you will learn what the compliance requirements of a One Person Company are and what annual returns you need to file after you have incorporated your OPC.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#What_is_Compliances_and_Annual_Filing_in_a_One_Person_Company\" >What is Compliances and Annual Filing in a One Person Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Annual_filing_for_One_Person_Company_MGT_7\" >Annual\nfiling for One Person Company&nbsp;(MGT 7)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Appointing_an_Auditor\" >Appointing an Auditor<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Holding_Annual_General_Meeting\" >Holding Annual General Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Maintaining_Financial_Statements\" >Maintaining Financial Statements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Compliance_requirements_under_the_Income_Tax_Act_1961\" >Compliance requirements under the Income Tax Act, 1961<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Annual_Compliance_for_One_Person_Company_OPC\" >Annual Compliance for One Person Company (OPC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Other_Compliance\" >Other\nCompliance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Compliances_and_Annual_Filing_in_a_One_Person_Company\"><\/span>What is Compliances and Annual Filing in a One Person Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A One Person Company, like any other business entity, has to comply with certain guidelines as prescribed by relevant laws and needs to file an annual returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Obtaining Corporate Stationery<\/h3>\n\n\n\n<p>After you successfully incorporate your One Person Company, you would need certain items that you would need for effectively running the company.<\/p>\n\n\n\n<p><strong><em>Some of the necessary items that you would need are as follows:<\/em><\/strong><\/p>\n\n\n\n<ul><li><strong>Name Board:<\/strong>\u00a0All companies, including an OPC, is required to affix the name of the company and address of its registered office outside every office or place in which it carries on business.<\/li><li><strong>Company Rubber Stamp:<\/strong>\u00a0A round rubber stamp\u00a0bearing the name      of the company and a straight rubber stamp\u00a0bearing the name of the      company along with the designation of the authorised signatory should be purchased. Company rubber stamp\u00a0is required for executing various legal documents like Board Resolutions, bank account opening forms, cheques, etc.,<\/li><li><strong>Letterhead:\u00a0<\/strong>The name and registered office address of the      OPC\u00a0must be printed on all letterhead, invoices, notices and other      official documents of the company.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Procuring OPC PAN <\/h3>\n\n\n\n<p>The first step that comes after the incorporation of a One Person Company is obtaining an OPC PAN. Furthermore, like any other company, an OPC also needs to have a company Permanent Account Number or PAN. You can apply for PAN online after the incorporation of your company, and receive the PAN Allotment Letter thereafter. Then, you need to get the PAN Allotment Letter signed by the company director, sealed with the company\u2019s rubber stamp. Then you need to send it to the NSDL office through courier. Furthermore, the PAN Card will be allotted to you in about 15 days after your application has been received by the concerned officials.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Opening OPC bank\naccount<\/h3>\n\n\n\n<p>The process for opening a bank account for a One Person Company is relatively simple when compared to the proprietorship bank account opening. As an OPC is a corporate entity, no other additional tax registrations or documents are required to open a bank account for an OPC. As per the KYC norms prescribed by the Reserve Bank of India, the following are the documents required to open a current account in the name of your\u00a0OPC;<\/p>\n\n\n\n<ul><li>Self-attested copies of OPC Certificate of incorporation<\/li><li>Memorandum of Association of OPC<\/li><li>Articles of Association\u00a0of OPC<\/li><li>Resolution to open a bank account for company<\/li><li>Copy of PAN allotment letter;<\/li><li>Copy of the telephone bill;<\/li><li> Identity proof of the director <\/li><\/ul>\n\n\n\n<p>Documents submitted for opening of the bank account must be self-attested with the seal of the company. Therefore, it is important to obtain company seal and company letterhead after incorporation of the OPC.<\/p>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-of-filing-annual-return\/\"> Procedure of Filing Annual Return: A Complete Guide<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_filing_for_One_Person_Company_MGT_7\"><\/span>Annual\nfiling for One Person Company&nbsp;(MGT 7)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Annual Return Filing\u00a0for the\u00a0OPC shall be filed with the Registrar of the Companies.<\/li><li>The annual return must be attached to Form MGT 7 filed with the ROC as an attachment <\/li><li>There should be a signature of Company Secretary in the annual return. If there is no Company Secretary available, then the director shall sign the return.<\/li><li>The annual return must be filed by all the OPC that is registered in India each year<\/li><li>Documents required for MGT 7:<ul><li>CIN\/PAN<\/li><li>List of the main business activities<\/li><li>Details of shareholding and shares <\/li><li>List of loans and debentures <\/li><li>Details of other securities as held by the company<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appointing_an_Auditor\"><\/span>Appointing an Auditor<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All\ncompanies&nbsp;are required to appoint the first auditor of the company, within\n30 days of incorporation. Also, in case of OPC as well, an Auditor must be\nappointed by the director of the OPC for auditing the financial statements of\nthe company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Holding_Annual_General_Meeting\"><\/span>Holding Annual General Meeting<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every company\nother than a One Person Company is required to hold an&nbsp;<a href=\"https:\/\/corpbiz.io\/learning\/annual-general-meeting\/\"><strong>Annual\nGeneral Meeting<\/strong><\/a>&nbsp;each\nfinancial year with not more than 15 months elapsing&nbsp;between the date of\none annual general meeting of a company and that of the next. However, in case\nthe of One Person Company where there is only one director on the Board of\nDirectors, then it is sufficient for the&nbsp;resolution to be passed only one\nDirector and entered in the minutes-book. The signed and dated resolution by\nDirector of an OPC is&nbsp;taken to be the meeting of the Board of Directors\nfor all the purposes&nbsp;under the&nbsp;<strong>Companies&nbsp;Act <\/strong><a href=\"http:\/\/www.mca.gov.in\/MinistryV2\/companiesact2013.html\" target=\"_blank\" rel=\"noreferrer noopener\"><sup>[1]<\/sup><\/a>. Also, a provision relating to a quorum\nfor meetings of Board does not apply to an OPC where there is only one Director\non its Board of Directors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Maintaining_Financial_Statements\"><\/span>Maintaining Financial Statements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>All companies need to prepare and file with the ROC, the following\nfinancial statements:<\/em><\/strong><\/p>\n\n\n\n<ul><li>A\n     balance sheet as at the end of the financial year;<\/li><li>Profit\n     and loss account;<\/li><li>Cash\n     flow statement for the financial year;<\/li><li>Statement\n     of changes in equity, if applicable;<\/li><li>Explanatory\n     note forming part of any document.<\/li><\/ul>\n\n\n\n<p>In the case\nof an OPC or&nbsp;<a href=\"https:\/\/corpbiz.io\/one-person-company\"><strong>One\nPerson Company<\/strong><\/a>&nbsp;small\ncompany&nbsp;and&nbsp;dormant company, the requirement for cash flow statement\nhas been removed. So, an OPC does not need to prepare or submit a cash flow\nstatement as a part of its financial statements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compliance_requirements_under_the_Income_Tax_Act_1961\"><\/span>Compliance requirements under the Income Tax Act, 1961<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One person\ncompany need to file their income tax return in Form ITR 6 for the financial\nyear on or earlier than 30<sup>th<\/sup>&nbsp;September of the following\nfinancial year with the tax department. In other words, for the financial year\n2018-19, income tax return in Form ITR 6 has to be filed on or before 30<sup>th<\/sup>&nbsp;September\n2019. Furthermore, if the due date has been extended by CBDT, such extended\ndate will be considered as the last date of&nbsp;<a href=\"https:\/\/corpbiz.io\/income-tax-return-filing\"><strong>filing\nincome tax return<\/strong><\/a>&nbsp;instead\nof 30th September.<\/p>\n\n\n\n<p>Additionally,\nalong with the annual tax return filing, every OPC is required to get\ntheir&nbsp;accounts audited under income tax act 1961&nbsp;if turnover exceeds\nthe limit as specified in section 44AB.\n\nIn addition to above compliance, a One Person Company may also require\ncomplying with TDS regulations, GST regulations, PF and ESI regulations and\nothers based on the requirements. We suggest you consult your chartered\naccountant to help you with this matter.\n\n\n\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_Compliance_for_One_Person_Company_OPC\"><\/span>Annual Compliance for One Person Company (OPC)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\u00a0annual return\u00a0of an OPC shall be filed with ROC as an attachment with Form MGT-7. Furthermore, such annual return has to be signed by the company secretary or where there is no CS, by the director of the company.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Section\n  &amp; Rules<\/strong>\n  <\/td><td>\n  <strong>Forms<\/strong>\n  <\/td><td>\n  <strong>Particulars<\/strong>\n  <\/td><\/tr><tr><td>\n  164(2), 143(3)(g)\n  <\/td><td>\n  DIR-8\n  <\/td><td>\n  Disclosure\n  of non-disqualification every\n  financial year by each\n  director.\n  <\/td><\/tr><tr><td>\n  184(1)\n  <\/td><td>\n  MBP-1\n  <\/td><td>\n  At each financial year for disclosure of director interest in other\n  entity at the &nbsp;First Meeting of the Board of Director\n  It is mandatory to submit Fresh MBP-1 is whenever there is\n  change in director interest.\n  <\/td><\/tr><tr><td>\n  Rule 12A\n  <\/td><td>\n  DIR-3\n  <\/td><td>\n  All the Directors of the company shall file DIR-3 on or before 30<sup>th<\/sup>&nbsp;September\n  every year.\n  <\/td><\/tr><tr><td>\n  Section 405\n  <\/td><td>\n  MSME-1\n  <\/td><td>\n  Company to\n  file MSME-1, every half\n  yearly with respect of pending payments to&nbsp;<strong>MSME<\/strong>&nbsp;vendors.\n  April to\n  Sep: 30th October\n  October to\n  March: 30th April\n  <\/td><\/tr><tr><td>\n  Section 73,Rule 16\n  <\/td><td>\n  DPT-3\n  <\/td><td>\n  To be filed on or before 30 June\n  every year with respect\n  to the return of Deposit and particulars that are not considered Deposits as on 31<sup>st<\/sup>&nbsp;March.\n  <\/td><\/tr><tr><td>\n  Section 139\n  <\/td><td>\n  ADT-1\n  <\/td><td>\n  Auditor shall be appointed within\n  15days of Annual General\n  Meeting for 5 years in form ADT-1 \n  <\/td><\/tr><tr><td>\n  Section 92\n  <\/td><td>\n  MGT-7\n  <\/td><td>\n  OPC file its annual return within 180 days\n  from the financial year closure.\n  <\/td><\/tr><tr><td>\n  Section 137\n  <\/td><td>\n  AOC-4\n  <\/td><td>\n  It is requisite for the company to file its Balance sheet together with Statement\n  of Profit and Loss Account, Auditor report and Director Report within 180 days from the financial year closure.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Compliance\"><\/span>Other\nCompliance:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Few of the other compliances are:<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Board\nMeeting (Section 173):&nbsp;<\/h3>\n\n\n\n<p>One Director Board meeting at least to be held in every half\nof the calendar\nyear and the space\nbetween the two meetings shall not be less than 90 days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Statutory\nRegister (Section\n88 and other):&nbsp;<\/h3>\n\n\n\n<p><strong><em>The One Person Company will maintain these mandatory registers:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Director Register<\/li><li>Director Shareholding Register<\/li><li>Related Party Transaction Register<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Director\u2019s\nReport:<\/h3>\n\n\n\n<p>&nbsp;Director\nReport shall be made and\nit shall mention all the information under the Rule 8A of Section 134.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Incorporating\nan OPC is a very simple process and takes a lot of lesser requirements than any\nother form of entity. Also, similar to any other form of business\nestablishment, an OPC is required to comply with various legal compliances and\nhas to filing annual return. Furthermore, an OPC has to comply with the\nprovisions of the Companies Act, 2013 and other relevant laws.<\/p>\n\n\n\n<p><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/the-role-of-the-company-secretary\/\"> Functions of a Company Secretary as per the Companies Act, 2013<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Annual filing and compliance requirement of a One Person Company is similar to that of a\u00a0Private Limited Company\u00a0or any other same form of entity. However, some of the requirements differ in a One Person Company from other types of entities obviously because they are different types of business models. In this article, you will learn [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":1408,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[206,205],"acf":{"service_id":"321"},"authorName":"Tanya Verma","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2019\/10\/IMG-20190703-WA0001__01-150x150.jpg","authorDescription":"Tanya is working as writer &amp; editor from past 2 years with experience in covering startup and technology related topics.","postViews":8118,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1407"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=1407"}],"version-history":[{"count":14,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1407\/revisions"}],"predecessor-version":[{"id":28500,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/1407\/revisions\/28500"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/1408"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=1407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=1407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=1407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}