Compliance Requirements of the OPC

Compliance Requirements of the OPC

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.

Compliance Requirements for an OPC 

CORPORATE STATIONERY

Following the registration, it is advisable for one to purchase the following stationery: Name board: All companies, including an OP

Company rubber stamp: For the execution of various legal documents related to banking functions, board resolutions, etc., a rubber stamp is required. The company should purchase a round rubber stamp and a straight rubber stamp bearing the name of the company and its director.

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.

PAN APPLICATION OF THE OPC

Once the OPC is incorporated, the first step is to obtain its PAN number. An application must be signed by the director of the OPC and submitted to the NSDL office. A self-attested copy of the incorporation certificate must also be submitted along with the PAN application. The entire process of obtaining a PAN card can take around 15 days starting from the date the application is received. 

OPENING OF BANK ACCOUNT

Getting your OPC a bank account is simple. OPCs are corporations under the Companies Act. Additional tax forms and registrations are not required. 

KYC regulations of RBI require the following documents for opening a bank account:

  1. A self-attested copy of the OPC’s incorporation certificate
  2. Memorandum of association
  3. Articles of association 
  4. The resolution to open a bank account for the OPC
  5. A copy of the PAN allotment letter
  6. ID proof of the director
  7. Telephone bill

It is imperative to note that all documents mentioned above must be self-attested with the OPC seal and the director’s signature.

AUDITOR’S APPOINTMENT

For the audit of the OPC’s financial documents and statements, the first auditor must be a chartered accountant within 30 days of incorporation.

An OPC must conduct a statutory audit. An OPC must also appoint a statutory auditor within 15 days of its first Annual General Meeting via form ADT-1.

ANNUAL MEETING

An OPC does not need to have a general meeting every year. Furthermore, the provisions related to quorums in meetings do not apply to an OPC.

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. 

According to Section 173 of the Act, the board should meet at least once every half year, and the gap between two meetings should not be less than 90 days.

ANNUAL FILING FOR OPC (MGT-7)

The OPC’s annual returns must be filed with the Registrar of Companies. As an attachment to Form MGT-7, the return should be filed with the ROC. The company secretary must also sign such an annual return. If there is no company secretary available, the director must sign the return. It must be filed annually by all OPCs registered in India.

Documents required for Form MGT-7:

  • CIN/PAN
  • 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)

The following audited documents must be filed with the Registrar of Companies within 180 days from 31 March of the financial year by all companies, including OPCs:

  1. Balance sheet 
  2. Accounts of profits and losses
  3. Audit report
  4. Records of any change in equity
  5. Any document that needs an explanatory note.

For an OPC, a cash flow statement is optional and not required.

The Takeaway

It’s hard enough to run a one-man show, but keeping up with compliance is another burden best left to experts like Vakilsearch. Contact our team today to ensure smooth handling of all your compliance formalities and requirements.

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