Managerial remuneration in the simple words is a remuneration paid to managerial personnel. Her...
In case of late filing or non-filing of Annual ROC Return before the due date or the last date will attract a penalty 12 times of normal fees. Further, the Company can’t be wound-up or closed without the filing of the return. Therefore, it is good to file the Annual Return on the due dates. In this article, we will discuss One Person Company Annual Compliance. As we know One Person Company Registration is easy as compared to Private Limited Company Registration.
Section 2 (62) of the Companies Act, 2013 says a company with only one person as its member or sole owner falls under the criteria of One Person Company or OPC. Further, an OPC is owned and administered by one person only. Moreover, all the members of an OPC are the followers to its memorandum of association (MOA) or its shareholders.
Further, it is significant to mention that an OPC can only be incorporated as a Private Company which means that all the provisions applicable to a Private Limited Company will be applicable to a One Person Company.
The following can’t form such a company:
Particulars of Compliance
Every director at each financial year shall submit this for disclosure of director’s interest in other entity.
In OPC the directors of the company have to file a declaration about non-disqualification.
OPC shall file its Annual Return within 180 days from the end of financial year. Annual Return will be for the period 1st April to 31st March.
The Company is required to file its Balance Sheet, PL Account and Directors ‘Report in this form and also auditor’s report. It has to filed within 180 days from the end of financial year.
Auditor in OPC will be appointed for 5 (Five) years and form ADT-1 will be filed for 5-years appointment. It shall be filed within 15 days of AGM.
Directors’ Report- Director shall contain details of information required for small companies.
Circulation of Financial Statement & other relevant Documents– Company shall send to the Members of the Company approved Financial Statement, Directors ‘Report and Auditors’ Report at least 21 clear days before the date of AGM.
Statutory Register- Company shall maintain mandatory registers: Director register, director shareholding register and related party transaction register.
Section 173(5) of the Companies Act, 2013 requires that a One Person Company must conduct at least one board meeting (BM) in each half of the calendar year. This simply means that one meeting is obligatory to be conducted between the period from January to June and another meeting between the period from July to December. Further, the time gap between two board meetings must not be less than the period of 90 days. However, if in case the company has only one director then in that case such meeting requirement does not arise at all.
Further, an OPC is mandated to hold its Annual General Meeting (AGM) as provided under section 139 (1) of the Companies Act, 2013 to appoint a Statutory Auditor. Furthermore, such an auditor must hold the office from the conclusion of the first AGM (Annual General Meeting) to the conclusion of the sixth Annual General Meeting.
Following are the compliances which are mandatorily required to be followed for OPC Registration –
Following listed are the compliances which occur on happening of a certain event –
OPC Registration is easy and costs effective in terms of favoured compliance. AGM in One Person Company can be passed by just entering details in minutes’ books. In the case of OPC, there is no need to hold physical AGM, because there is only one Member. One should always comply with the One Person Company Annual Compliance and in case of any doubt seek the help of a professional.
Read our article:Advantages of One Person Company over other Company Types