OPC Compliance Requirements
A one person company (OPC) is a company formed by just one person. According to Section 2(62) of the Company’s Act of 2013, such a company can be formed with just one director and one member.
The OPC structure was introduced to allow a sole entrepreneur to start and manage a limited liability entity. Its main purpose is to assist all those sole member businesses.
Compliance Requirements for an OPC
One should purchase the following stationery after registering:
A company’s name is displayed outside its place of business by an OPC.
Various legal documents related to banking functions, board resolutions, etc. require the use of a rubber stamp. A rubber stamp shaped like a round one and one shaped like a straight one bearing the name of the company and its director should be purchased.
The name of the company and its address must be printed on the letterhead of all invoices, notices, circulars, and other official documents sent out by the OPC.
OPC PAN APPLICATION
The first step after an OPC is incorporated is to obtain a PAN number. The director of the OPC must sign the application and submit it to NSDL. A self-attested copy of the incorporation certificate must be submitted with the PAN application. An application for a PAN card can take up to 15 days from the date it is received.
OPENING OF BANK ACCOUNT
You can open a bank account for your OPC fairly easily. The Companies Act recognizes the corporation as a legal entity. There are no additional tax forms or registrations needed.
RBI requirements for opening a bank account require the following documents:
- Self-attested copies of the OPC’s incorporation certificate
- Memorandum of association
- Association by laws
- A resolution to open an account in the OPC’s name
- A copy of the PAN allotment letter
- ID proof of the director
- Telephone bill
Documents mentioned above must be self-attested with the OPC seal and signed by the director.
A chartered accountant must be appointed for the purpose of auditing the financial documents and statements of the OPC within 30 days of incorporation.
As the statutory audit is a requirement for an OPC. Within 15 days of the first Annual General Meeting, an OPC must also appoint a statutory auditor who will serve for 5 years.
A general meeting of the OPC is not required every year. Additionally, an OPC is not subject to the quorum requirements for meetings.
As there is only one director on the board, a resolution passed by the director can be entered into the minutes book. Once signed by the sole director, this resolution becomes the act of the general meeting.
However, it is important to remember that, as per Section 173 of the Act, a board meeting should be held in every half of the year and the interval between meetings should not be less than 90 days.
MGT-7 ANNUAL FILING FOR OPC
The OPC shall file its annual reports with the Registrar of Companies. Attach the return to Form MGT-7 and submit it to the ROC. The company secretary must also sign the return. A director must sign the return if there is no company secretary available. OPCs in India are required to file it annually.
Documents required for Form MGT-7:
- List of main business activities
- Details of shares and shareholding
- List of debentures and loans
- Details of other securities held by the company
FINANCIAL DOCUMENTS REQUIRED (AOC-4)
Companies, including OPCs, must file the following audited documents with the Registrar of Companies within 180 days from 31 March of the financial year:
- Balance sheet
- Accounts of profits and losses
- Audit report
- Records of any change in equity
- Any document that needs an explanatory note.
An OPC does not require a cash flow statement.
It’s hard enough to run a one-man show, but keeping up with compliance is another burden best left to experts like Vakilsearch. Our team can help you with all your compliance formalities and requirements.