An Overview of Annual Compliance for One Person Company

One Person Company is the business structure that comprises one shareholder as its member, which exhibits that the entity is managed and controlled by a single person. Like all other business structures, it is obligatory for One Person Company to maintain annual compliance according to the Income Tax Act and Companies Act.

One Person Company has to follow some of the yearly compliance to meet the annual compliance requirements. The yearly compliance that the OPC needs to follow is given below.

Appointment of Auditor

To assess the company’s annual financial statement that includes the yearly sales, profit and loss, and other details, the OPC needs to appoint a trained Auditor.

ROC Annual Return Filing

ROC Annual Return has to be filed within 60 days of the entry of ordinary resolution in Minute book. The ROC annual return shall be from 01st April to 31st March in MGT-7 form.

Statutory Audit

OPC is mandated to get their books of accounts audited by a Chartered Accountant firm, and the firm will issue the Audit report certification for the OPC under the OPC Statutory Audit.

KYC of Company’s Director

Form DIR-3-KYC or DIR-3 KYC-WEB has to be submitted by every person holding the DIN/DPIN as of the 31st March of that financial year. They have to submit the form on or before 30th September of the following financial year.
Form DIR-3-KYC is for the person who holds DIN and files the KYC for the first time.
Form DIR-3-KYC-WEB is for the DIN holder who has filed for KYC through Form DIR-3-KYC in the previous financial year and does not require any updation.

Income Tax Filing

All the OPC registered in India are obligated to file for Income tax returns as per Section 139(1) of the Income Tax Act 1961.

We at Taxrepair has the expertise in fulfilling all the yearly compliance requirements for OPC as mentioned above.

Document Required for Annual Compliance for One Person Company

• Self-attested copy of PAN Card of the directors of the company
• Self-attested copy of (ID Proof):
• Aadhar card
• Passport
• Voters ID
• Driving license
• Any photo identity issued by the Government of India of the directors of the company
• The memorandum of association
• The Articles of Association

Note: The documents mentioned are some of the standard documents required for the annual compliance of OPC; however, the documents will differ as per the services required by the business entity.

Benefits of Annual Compliance for One Person Company

Ease in Raising Fund

Having all your compliance requirements in place will aid in getting funds from venture capitalists because the financial statement is one of the first things that they ask to know the health of the company they are thinking of investing in.

Avoid Hefty Penalties

The penalties levied on the company for not following the compliance protocol are quite hefty, and this can be avoided if OPC follows all the annual compliance requirements diligently.

Helps in Maintaining an Active Status

Regularly following the annual compliance helps maintain the company’s active status, i.e., it shows that the company continues to exist.

Timelines for Annual Compliance for One Person Company

Every OPC incorporated under the Ministry of Corporate Affairs is mandated to follow all the compliance protocols, and failing to do so will attract hefty penalties. Partnering with us will help you prevent these situations as we take care of all your compliance obligations on time and help you focus on the other aspects of the business.

Contact our team at Taxrepair via call or email to get a consultation about the Compliance requirement for OPC.