Annual Compliance for One Person Company
In countries like India where entrepreneurship is highly encouraged. One Person Company is one of the most leading forms of business for entrepreneurs whose business lies in an early stage with an intention to grow in future. A One Person Company comprises one shareholder as its member which indicates that it is managed and controlled by only a single person. Moreover, One Person Company is entitled to various privileges that other forms of business do not hold.
As to adhere with the rules and regulations, One Person Company is needed to maintain annual compliance according to Income Tax Act and Companies Act. The filing of yearly return and income tax returns is mandatory for one person company. It is simple and cost effective in terms of compliance to enlist as an OPC when contrasted with public or private.
As each OPC needs to indicate ROC with respect to the assets, liabilities, income and expenditure of the business every year, it becomes mandatory for OPC to do the compliances. In the event that the business neglects to do so, heavy penalties and fees are imposed for non fulfillment of annual compliances for OPC. In India, OPC can be enlisted uniquely as a Private Limited Company. Hence all the lawful arrangements which are relevant on Private Limited Company are likewise appropriate on OPC. Therefore, annual compliance for One person Company is obligatory.
Documentation required for Annual Compliance for OPC
AOC-4 Form for Financial statement
MGT-7 Form for Annual Return
To fulfill the annual compliances requirement OPC needs to go through some of the following yearly compliances-
Appointment of a proficient auditor for OPC
As per provisions of Section 139 of the Companies Act 2013 Appointing a proficient auditor is mandatory for One Person Company. The company’s annual sales, expenditure, profit and loss and other details are assessed by a trained auditor. Evaluator will analyse the books of accounts and issue Statutory review reports.
Filing of ROC Annual Return
OPC is required to file an ROC Annual Return within 60 days.. ROC Annual Return will be determined from first April to 31st March in MGT-7 form. There is a penalty of Rs 100/ - every day in case of non fulfillment. Each key individual from the organization and who is in the default will be regarded for paying a heavy penalty of Rs. 50,000 and furthermore the late charge of Rs. 100 every day if the default proceeds.
Statutory Audit for OPC
Contrasting from Private Company Limited, OPC is needed to get its books of accounts examined by a Chartered Accountant firm. OPC will keep up its books of record at its enrolled office. Under OPC Statutory Audit , CA Firm will give review report certification. Form AOC 4 is utilized by OPC to record their yearly fiscal summaries to ROC. A massive penalty of Rs 100 every day on delay in documenting Form AOC 4 is levied. Moreover, a sum of Rs. 1000 every day of default is charged from the organization which can go most extreme up to Rs. 10,00,000.
DIN KYC of Director
Form DIR-3-KYC or DIR-3 KYC-WEB for the given monetary year prior to 30th September of the next coming year is required to be submitted by every individual holding a DIN/DPIN as on 31st March of the financial year.
eForm DIR-3 KYC - who is filing his KYC for the first time and who possesses DIN.
DIR-3 KYC-WEB - A web service used by DIN holders who have submitted DIR-3 KYC eform in the prior accounting period and if no update is required. Penalty- Rs. 5000/-
Income Tax Filing
All companies whether private or public are obligated for Income Tax Return Filing. Each OPC enlisted in India needed to file ITR. ITR is one the most essential requirements for annual compliance for OPC regardless of whether OPC has not. Amount of Rs. 10000/ as a fee will be imposed in regard to non filing of ITR.
