One Person Company Compliances and Annual Filing

One Person Companies (OPCs) Introduced under the new Indian Companies Act of 2013. One person companies are becoming rapidly popular in entire India for sole entrepreneurs/professionals in various economic sectors. In respect of registration, one person company has many business administration & management, and also statutory compliances as per the Companies Act of 2013. In simple words, One Person Company Compliances are some general rules under various sections that need to be followed.

One Person Company Compliances

Compliance with Companies Act 2013

  • Under Section 173(5), it is mandatory for a one person company to organize at least one board meeting half yearly in a calendar year. As one meeting should be conducted between January to June and another one between July to December. The gap between two meetings should not be less than 90 days. However, if the company have only 1 director, there is no requirement for such a meeting.
  • Under Section 139(1), OPC is required to hold its Annual General Meeting to appoint Statutory Auditor. Such an auditor should hold office from the conclusion of the first AGM to the conclusion of 6th AGM.

Financial statements of One Person Company under Companies Act 2013

  • Under Section 137(1) of Companies Act, 2013 it is mandatory that in a board meeting the company must adopt its financial statements and get it signed by the directors. It can be signed by one of the directors.
  • After getting it signed by the board of Directors, in Form AOC-4 within 180 days from 31st March of the financial year.
  • In One Person Company, balance sheet, profit and loss account, auditor’s report and notes to accounts are covered in financial statements. There is no need to prepare Cash flow statements.
  • Within the 30 days from the date of incorporation, a chartered accountant in practice must be appointed to audit all the books and accounts of the One Person Company. He must be the first auditor of the company.

Apply for One Person Company Registration with Company Registration Online today.

Annual return to be filed by the OPC with Registrar of Companies

  • The annual return of a One Person Company shall be filed with ROC as an attachment to Form MGT-7. Such annual return has to be signed by the company secretary or where there is no company secretary, by the director of the company.

One Person Company Compliances

Compliance under the Income Tax Act 1961

  • It is mandatory for every One Person Company to file their income tax return in Form ITR 6 for the financial year on or before 30th September of the following fiscal year with Income-tax Department. In simple words, it means that for the financial year 2017-2018, income tax return in form ITR6 has to be filed on or before 30th September2018.
  • If turnover exceeds Rs 2 Crore, Every One Person Company is required to get their accounts audited under Income Tax Act 1961, as an addition to the annual tax return filing.
  • TDS regulations, Gst Regulations, PF and ESI regulations are also some other Compliances of One Person Company.
  •  These are among the most important One Person Company Compliances.

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2020-04-16T06:31:21+00:00One Person Company|