One Person Company
One person company has been introduced in the Companies Act, 2013. The major intent was to support businesspersons capable of starting a venture, by them. This is also done by means of allowing them to create a single person economic entity. One of the major advantages of a One Person Company (OPC) is that there only one member is allowed in OPC. On the other hand, a minimum of two members is needed for incorporating and maintaining a Private Limited Company or a Limited Liability Partnership.
The One Person Company Annual Compliances in India cover the following main compliances:
• Annual Return in Form MGT-7.
• Financial Statements in Form AOC-4.
• Income Tax Returns in Form ITR-6.
• Event-based Annual Compliances.
• Annual Compliances under diverse Legal Authorities.
Procedure Involved in Annual Compliances Filing for One Person Company in India
The One Person Company Annual Compliances must be made through the following Forms and within the specified time:
Annual Return Filing with Registrar of Companies (Form MGT-7)
This is one most significant ROC return filing for OPC Company covering the Statement of Disclosure of Shareholders and Directors. One must file the annual return within 60 days of holding the Annual General Meeting (AGM). If the AGM didn’t take place, one is required to file the return within 60 days of the date on which AGM must have taken place. Such Annual Returns is signed through Company secretory or if CS is not there than by the Director of the corporation.
Documents needed for MGT 7
• CIN/PAN.
• List of main business actions.
• Details of shares and shareholding.
• List of debentures and loans.
• Details of other securities held by the corporation.
Financial Statements Filing with Registrar of Companies (Form AOC-4)
This must be filed with pertinent ROC, covering all financial transactions and money related audited accounts of the one person company in the stated fiscal year. For an OPC, the annual financial reports cover only the following particulars — Balance Sheet, Profit, and Loss Account, Auditor’s Report, as well as the Consolidated Financial Statement. In the case of AOC-4, the due date is within 180 days from the end of Fiscal Year. This implies that the last date for filing AOC 4 would be 30th October of the following financial year. Such financial statements must be signed by the Director. In section 137(1) of Companies Act 2013, it is compulsory for the corporation to adopt its financial statements in a board meeting as well as signed through the directors.
Documents needed for AOC 4
• Balance Sheet
• Profit and Loss Account
• Director’s Report
• Auditor’s Report
• Notice of AGM
Filing Income Tax Returns (Form ITR-VI) with Income Tax Department:
This must be filed with the Income Tax Department, in Form ITR-6, through the OPC. For ITR-6, the due date is 30th September of the Assessment Year, for instance for the financial year 2017-18 Income Tax Returns in Form ITR-6 must be filed on or before 30th September 2018. Tax audit shall be statutory if the turnover of the OPC is more than Rs 2 Cr.
The needed documents are:
• Purchase and Sale invoice.
• Expense invoice.
• PAN of the company.
• Copy of TDS Challans/deposits (if any).
• Copy of VAT/Service Tax Returns (if any).
• Bank Statement for the year.
• Credit Card Statement (if any).
Conclusion
Income tax returns, Financial statement, and annual statement filing is necessary for every OPC. The Law needs all the above-given filings. Every year one must comply with the concerned authority. These compliances could be made online or could be filed with an online application on their official websites. So if an individual is running an OPC, then that individual is required to abide by these filings. If there is a failure of these filings, the individual might face legal problems and could be levied fines for these.
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