Compliance of OPC with the Registrar of Companies
As the owner of an OPC company in India, you must follow the rules set by the Registrar of Companies (ROC) for your business to run smoothly. It is important to follow compliance of OPC with the registrar of companies regulations to keep the company’s legal status, avoid fines, and build a good reputation. In this article, we’ll talk about the compliance rules that an OPC has to follow and explain why it’s important to follow these rules. Let’s dive in!
What Are the Compliances Required for OPC?
The RoC has certain requirements that a One-Person Company must meet. In this section, we’ll talk briefly about the following:
1. Annual Return (Form MGT-7A)
- Every OPC has to file with the Registrar of Companies an Annual Return annually.
- The return is filed in form MGT-7A.
- The annual return needs to be signed by the Company Secretary for a few companies; However, since an OPC only has one member, it doesn’t have to hire a Company Secretary. In this instance, the director must sign the return.
- Below documents are required to be attached in Form MGT-7A,
- List of Shareholders; and
- List of Directors.
2. Financial Statement (Form AOC-4)
The Companies Act says that audited financial statements of an OPC must be filed electronically within 180 (One Hundred and Eighty days) from the end of the financial year.
- The sole director has to sign the financial statements and the Board’s Report.
- Balance Sheet, Profit and Loss Account, Audit Report, and notes to the account shall all be part of the financial statements.
- The person chosen as an auditor will keep their job until the end of the 6th AGM.
Other OPC Compliance Requirements,
- The OPC must hold at least two board meetings every year, but it doesn’t have to hold an annual general meeting (AGM).
- You should file your income tax returns, annual statements, Form DIR-3 KYC for the KYC of directors, and financial statements every year.
- Based on the needs, every OPC has to follow the rules and regulations for TDS, GST, PF, and ESI.
- Within 180 days of incorporation, Form INC-20A must be filled out about starting a business.
- Share certificates must have their stamp duty paid within 30 days of being issued.
- E-form MSME-I (Half-Yearly Return) must be filled out if a company owes MSMEs money that has been paid in less than 45 days.
- Every year, you must fill out E-form DPT-3 (Return of Deposits), which lists all your outstanding loans and payments as of March 31.
- Form MBP-1 must be filled out to show the interests of each company director at the first Board Meeting or whenever there is a change.
- Form DIR-8 must be filled out yearly with a statement that the director is not disqualified.
What Is Compliance After Incorporation of OPC Company?
Section 2(62) of the Companies Act of 2013 states that a one-person company consists of a single member.
After its incorporation, OPC is required to adhere to certain compliance requirements.
Following are the post-incorporation requirements stipulated by the Companies Act 2013 for OPC:
1. Opening a Company’s Bank Account
The first post-incorporation compliance after OPC’s incorporation is establishing a bank account in the company’s name for business transactions. The documents required to establish a current account are a copy of the company’s PAN card, board resolution, memorandum of association, articles of association, and evidence of registered office.
3. Place Share Capital Into Bank Account
Shareholders must deposit capital into the company’s bank account within sixty days of the OPC’s formation.
4. Disclosure Of Interest By Directors
Following the post-incorporation compliances companies act 2013, directors must disclose their interest in any other company, LLP, or firm at the first board meeting.
5. GST registration
If OPC’s current supply of goods or services exceeds Rs. 20 lacs, GST registration is a mandatory requirement.
6. Board Meeting Of Directors
The first board of directors meeting must be held within 30 days of OPC’s incorporation. If the OPC has a single director, a board meeting is not required, and he is permitted to pass resolutions and record them in the company’s minute book; this will be considered post-incorporation compliance under the Companies Act 2013.
7. Appointment Of Auditor
The company’s director must appoint the company’s first auditor within 30 days of the company’s incorporation. This auditor must comply with the mandatory compliances for OPCs and should remain in office until
These are the post-incorporation compliances required by the Companies Act of 2013 for a one-person company.
What Are the Rules for OPC Companies?
In India, a type of corporation known as a One Person Company (OPC) enables a single person to establish and manage a business as a distinct legal entity. The following are a few of the guidelines that apply to the establishment and management of an OPC firm in India:
Eligibility: An OPC may only be established by a natural person who is both an Indian citizen and a permanent resident of India. Also, only one OPC may be generated at a time.
Director: There must be only one Director in an OPC corporation. An OPC’s director must be a natural person; neither a business nor a corporation may serve in such a capacity.
Shareholder: A single shareholder who also serves as the company’s sole director is required for an OPC.
Nominee: An OPC must designate a nominee who will take over as shareholder in case of the only shareholder’s decease or incapacitation.
Name: The name chosen for an OPC should stand out from the crowd and not be too similar to existing brands. It must also include the phrase “(OPC) Private Limited” at the very end.
Capital: There is no minimum paid-up and authorised share capital requirement
Yearly compliance: An OPC must submit their annual return and financial statements by the rules for annual compliance.
FAQs: Compliance of OPC with the Registrar of Companies
Is registration mandatory for OPC?
The Companies Act of 2013 says that OPC must be registered, so the answer is yes. An OPC must get a Certificate of Incorporation and be registered with the Registrar of Companies (ROC).
Is annual return mandatory for OPC?
Yes, OPC has to file its annual return. Within 60 days from the end of 6 (Six) months of the financial year, an OPC must file its annual return with the ROC.
Can OPC do multiple businesses?
Yes, an OPC can run more than one business if they are all part of the same business activity or any other activity allowed by the Companies Act of 2013. An OPC can only do something else once it changes its Memorandum of Association (MOA) and gets the right permissions.
In India, an OPC needs to follow the rules that Registrar of Companies sets. An OPC has to file financial statements and annual returns every year. To avoid fines and legal problems, following the rules and regulations set out in the Companies Act 2013 and meeting the compliance of OPC with the registrar of companies is important. By following the rules, an OPC can run smoothly and build a good name in the market.
Do you have any questions? Let us know below or do contact our Instafilling specialists. We are on a mission to make India compliant. The experts in the field will help and guide you in successfully registering your OPC including the annual compliances and other requirements as per the Companies Act, 2013.
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