Annual Compliance of One Person Company
- Genuine Advices & Honest Guidance
- No Tedious Paperworks
- No Legal Hassles
- EMI Options available
- CA, CS, CMA & Lawyers under one roof
- 1 Lakh + Customers | 10 Years + Experience
- 300+ Services | Nation wide presence
We are Recognised By:
Get Annual Compliance of One Person Company without tedious paperworks and legal hassles.
Table of Contents
Annual Compliance of One Person Company
In India, Person Companies (OPCs) are a distinct kind of business setup where an individual can function as a distinct legal entity. OPCs offer the advantages of restricted liability and official recognition to businessmen while keeping the compliance process simplified. This write-up concentrates on the yearly compliance specifications that OPCs must follow in India. OPCS needs to comprehend and satisfy these responsibilities to remain compliant, avoid penalties, and operate smoothly.
1. Annual General Meeting (AGM)
OPCs are not required to conduct AGMs, but they must fulfill their obligations for annual reporting by following specific criteria. These guidelines must be followed by OPCs:
OPCs are required to create financial statements annually, which must include a balance sheet, profit and loss account, and cash flow statement.
OPCs are required to assign a statutory auditor who will examine their financial statements. The auditor must provide an assessment of the accuracy of the financial statements and ensure that they adhere to the relevant accounting principles.
OPCs are required to submit an annual return to the Registrar of Companies (RoC) no later than 60 days from the end of the financial year. This annual report should include the company’s activities, registered office address, details of the sole member, and share capital information.
2. Maintenance of Books and Records
As a part of their yearly compliance duties, OPCs are required to keep various records and books such as:
2.1. Members Registry: OPCS must keep a record of their members, which should include the single member’s details like name and address, as well as the number of shares they have.
OPCs need to have a record of directors, which should include information such as their name, address, date when they were appointed, and any updates regarding changes in their role as directors.
OPCs are required to keep accurate financial records that encompass documentation of monetary dealings, bills, proof of payment, and vouchers.
OPCs are required to keep legal records, including but not limited to records of contracts, charges, and transactions involving related parties.
3. Board Meetings and Resolutions
Though OPCs are not required to conduct frequent board meetings, there are specific obligations of compliance that must be fulfilled regarding board resolutions. These obligations involve:
To file their financial statements with the Registrar of Companies, OPCs need to have a board resolution approving them. This resolution can be recorded either in the minutes of a meeting or through a resolution passed by circulation.
To appoint or reappoint a statutory auditor, OPCs must pass a board resolution that includes the auditor’s name, qualifications, and appointment duration.
OPCs are required to pass a resolution at their board meeting to authorize the filing of their annual return with the Registrar of Companies (RoC). This resolution ensures that all the details given in the annual return are correct and complete.
4. Tax Compliance
OPCs are obliged to follow different tax-related regulations. Primary areas of adherence comprise:
OPCs have to submit their income tax returns every year, revealing their incomes, expenses, and obligations for taxation.
To comply with regulations, OPCs are required to deduct a percentage of taxes from certain payments made to vendors, contractors, and employees, among others, known as Tax Deducted at Source (TDS). This amount must then be sent to the government within the designated deadlines.
OPCs that sell goods or provide services and earn income above the set limit are required to register for GST and regularly submit GST returns.
5. Consequences of Non-Compliance
Not fulfilling yearly responsibilities can lead to negative outcomes for OPCs. Some possible results may include:
Regulatory agencies have the authority to impose penalties, fines, and extra charges for failing to adhere to statutory and regulatory obligations. The extent of the penalties may differ depending on the type and gravity of the non-compliance.
5.2. Legal Responsibilities: Failure to comply with regulations can result in legal obligations for the OPC and its only member, which may lead to legal action, disagreements, and the possibility of personal responsibility for the sole member.
If an OPC continuously fails to follow regulations or commits serious violations, the regulatory authorities can begin a process to cancel the organization’s registration. This action is only taken in extreme situations.
Conclusion
Annual compliance is a crucial aspect of running a Person Company in India. OPCs must adhere to annual reporting obligations, maintain books and records, comply with tax laws, and fulfill other regulatory requirements. By understanding and fulfilling these obligations, OPCs can ensure legal and regulatory compliance, avoid penalties, and maintain their status as separate legal entities. OPCS needs to prioritize annual compliance to uphold good governance practices, protect the interests of the sole member, and foster trust among stakeholders. Proactive compliance measures and timely filing of necessary documents are vital for the long-term success and sustainability of Person Companies in India.
Frequently asked questions
Annual compliance refers to the set of legal and regulatory requirements that a One Person Company in India must fulfill on an annual basis to maintain its active status and comply with corporate governance standards.
Annual compliance typically includes filing of financial statements, annual returns, and fulfilling other statutory requirements like the appointment of auditors and directors.
A One Person Company is required to file audited financial statements, including the balance sheet, profit and loss statement, and cash flow statement, with the Ministry of Corporate Affairs (MCA).
The Annual Return is a summary of a company’s activities throughout the year. One Person Companies must file their Annual Return, along with financial statements, with the MCA within a prescribed timeframe using the MCA portal.
No, One Person Companies are exempt from holding an AGM. Instead, the resolutions passed by the member of the company shall be entered in the minutes book.
Yes, virtual meetings and compliances are permitted for One Person Companies as per the provisions of the Companies Act, 2013.
Yes, One Person Companies are required to appoint auditors, and their appointment or reappointment needs to be ratified by the member of the company.
Contact us
We're here to help you get Annual Compliance of One Person Company.....
How do we work?
We follow simple process to complete works of our customers.
Consultation
We consult and interact with you to understand your requirements.
Documentation
We prepare your documents and get them ready for filing them with government departments.
Application Filing
We file application form alongwith all required documents and file them with government department.
Registration
We get license and registration certificate for you while you relax at your home.
Over
customers
currently trust us
Reasons behind Why Customers Love Us?
Complete Online Service
No need to come down to our office, consultation, documentation, delivery of services can be done online.
EMI Options
You can pay our fees in easy Equal Monthly Installments.
1,00,000+ Customers
have trusted on us worldwide.
A to Z services under one roof
Our team of CA, CS, CMA, Lawyers and IT professionals enable us provide more than 300 services under one roof without compromising quality of services.
CA, CS, CMA, Lawyers
and IT professionals at one place to ensure you wont have to go anywhere else for any services.
Affordable Pricing & Quick Support
Our pricing does not become burden on your pockets and we ensure, you get quick support and service.
What do our customers say about us...
ANAND VARDHAN
I am pleased to share my experience with Meerad for their outstanding ISO certification services. We entrusted them with the responsibility of obtaining ISO certification for our IOCL Khunti Terminal, and their performance exceeded our expectations.
MRITUNJAY KUMAR
मैं खुश हूँ कि मेरी प्राइवेट लिमिटेड कंपनी के वार्षिक अनुपालन काम को समय पर पूरा किया गया। इससे मेरी कानूनी चिंताओं से छुटकारा मिला है।
KAUSHIK SIRCAR
আমি এই কোম্পানির PSARA লাইসেন্স সেবার সাথে আমার খুব খুশি। তারা না শুধু সময়ে লাইসেন্স দিয়েছে, তারা সবচেয়ে সস্তা মূল্য দেয়েছে। তাদের দক্ষ দল নিশ্চিত করেছে যে সমস্ত প্রয়োজনীয় ডকুমেন্টগুলি ঠিকমত রেখে সমস্ত প্রক্রিয়া সান্নাদ মুক্ত ও বাধাহীন করে দেওয়া হয়েছিল। আমি তাদের সেবার সাথে খুব সন্তুষ্ট এবং অন্যদেরকে তাদের সেবার সাথে সুপারিশ করতে অস্বীকার করবো না।
Anand K Kudale
आपल्या सेवेकामींने आपल्या व्यावसायिक विचारांसाठी प्रौढ़पणे आणि संप्रेषितीपूर्ण दृष्टिकोणाने उपयुक्त सेवा प्रदान केली. आपल्या कामाच्या सुचलीत वितरणाने आपल्याला व्यावसायिक लायसन्स आणि पेशनल टॅक्स नोंदणीसंबंधित सेवा समयानुसार मिळवल्याच्या आहे, ज्यामुळे आम्ही आपल्याला कानूनी चिंतांपासून सोडवू शकता. आपल्या स्पष्ट मूल्यनीती धोरण, ग्राहक-मध्यस्थ दृष्टिकोण, आणि सेवेकारयाच्या संरचनात्मक उपायामुळे आपल्याला आणि आपल्या टीमला उत्कृष्ट संजीवन आहे. आपल्याला आमच्या व्यावसायिक लायसन्स आणि पेशनल टॅक्स नोंदणीसंबंधित सेवांसाठी सुचलीत आणि प्रावधानीच्या दिशेने विश्वास ठेवण्यात कोणत्याही कठिणाइक नाही.
Janani T.
மீராட் பிசினஸ் சொல்யூஷன்ஸ் பீகார் மற்றும் ஜார்கண்டில் வக்கீல்சர்ச்சின் விலைமதிப்பற்ற பங்குதாரராக உள்ளது. சட்ட மற்றும் CA சேவைகளில் அவர்களின் நிபுணத்துவம், வாடிக்கையாளரை மையமாகக் கொண்ட அணுகுமுறையுடன், எங்கள் வாடிக்கையாளர்களுக்கு தொடர்ந்து சிறந்த தீர்வுகளை வழங்கியுள்ளது. அவர்களின் வெளிப்படையான விலை நிர்ணயம் மற்றும் சரியான நேரத்தில் சேவை வழங்குவது அவர்களை நம்பகமான கூட்டுப்பணியாளராக்குகிறது, எங்கள் வாடிக்கையாளர்களின் சட்ட மற்றும் நிதித் தேவைகளை திறம்பட பூர்த்தி செய்ய உதவுகிறது. அவர்களின் கூட்டுறவை நாங்கள் பெரிதும் பாராட்டுகிறோம்.
Our Achievements
1 Lakhs+ customers served.
5000+ Trademarks registered.
50000+ Startups registered.
11+ Years of Experience
Get our Franchisee to Skyrocket Your Income.*
Become our Partner and provide over 300 plus services to your customers… 😄 We have so many franchisee and agency options, for more details, contact us.
Our Media Coverage
Meerad has been featured in
Contact Our Experts Now
You are just a form submission away from our experts:
✔ Chartered Accountants
✔ Company Secretaries
✔ Cost Accountants
✔ Lawyers
✔ IT Professionals
✔ Market Surveyors
✔ Industry Set-up Consultants
✔ Loan & Credit Card Consultants