OPC- One Person Company is a kind of company established under the Companies Act, 2013. This kind of business structure enables a solo Entrepreneur to begin and manage the limited liability entity. The main agenda of the OPC establishment is to support individual Enterprises.
Here are some points of Post Incorporation Compliances for One Person Company: –
File Documents for Registered Office Address
If you have missed to fill RO in in SPICe form at the time of registration, then you can file Form INC-22 along with lease agreement, NOC, and utility bill.
Meeting of The Board of Directors
A One Person Company is mandatorily required to have at least 2 board meetings with a gap of 90 days. The meeting need to be managed in such a way that at least one meeting of the board of directors has been conducted in each half of a calendar year with a gap of 90 days.
When you conduct only 2 board meetings in a year, you should maintain the gap of 90 days or more, or else it is not required.
Calendar year starts from January to December.
Board meeting is not required to be conducted if the OPC has only one director.
Appointment of Company Auditor
BOD (Board of directors) need to appoint OPC’s first auditor within 30 days from the date of incorporation of OPC.
If it is not done, then within 90 days, auditor need to be appointed by a general meeting.
According to section 139(1) of the companies act 2013, a OPC is needed to conduct the first AGM aka annual general meeting to appoint a CA in practice as it is auditor to hold office from the conclusion of the first annual general meeting till the conclusion of the sixth AGM.
Open A Bank Account & Raise Share Capital
After incorporation of OPC, you can open a bank account with any private bank.
This is the first and foremost thing you need to do after getting certificate of incorporation from government as cash payments and receipts can be disallowed while calculating your taxable business income under the income tax act, 1961.
Annual Return
OPC is required to file their annual return in form MGT-7 on or before the due date.
Financial statement, annual report in form MGT-7 need to be filed on or before the due date of filing which is 180 days from the end of the year. In relation to One Person Company and small company, the annual return shall be signed by the CS (company secretary), or by the director of the company.
ITR Filing
Annual return of income needs to be filed as per the tax laws of India on or before the due date of filing. we do not have any special tax provisions for an OPC.
A one person company is required to prepare it is annual income tax return as applicable to a private limited and file it in ITR-6 form with the government.
Audit Your Books of Account
OPC is required to be audited by a CA in practice before filing financial statements with the ROC. In case, you are newly incorporated, then within 30 days of incorporation, you need to appoint a first auditor. The first auditor need to hold office till the conclusion of the first Annual General Meeting.
In addition to it, you are also required to get your accounts audited as per the provisions of section 44AB of income tax act,1961 if turnover crosses INR 1 Crore.
Related Party Transactions
If the One Person Company entered into a contract with the member/owner, who is also the director of the company, the OPC unless the contract is in writing ensure that the contract’s terms are implied in a memorandum are recorded in the minutes of the first board meeting held next after the contract.
Within 15 days from the date of approval by the board, the OPC is required to inform the register about every contract entered by the company.
In addition to above compliances, you may require fulfilling certain other compliances if certain conditions are satisfied. We suggest you consult a chartered accountant to help you understand all other requirements and do audit of your books of account.