OPC Registration with Annual Filing Compliance and Due Date

OPC Registration with Annual Filing Compliance and Due Date

OPC Registration with Annual Filing Compliance and Due Date

Many newer concepts in law have been introduced and altered to manage the Indian companies in 2014. One of these is the One-person company in India (OPC).

One-Person Company Registration

One person company is a situation in which there is one member. The following aspects can explain this.

What is a One-Person Company (OPC)?

The One Person Company Amendment (OPC) to the Companies Act 2013 states that private companies must have 2 directors and members, while public companies must have 3 directors and 7 members. It also states that a single person cannot incorporate a company.
Section 2(62), Companies Act 2013, only allows 1 director and 1 member to start a company. However, compliance is less.

The Ministry of Corporate Affairs (MCA) changes the one-person company rules. This task gives advantages to startups & Innovators and those who provide the products and services via e-commerce platforms. To increase the number of unincorporated businesses in the organized sector, the launch of One Person Companies (OPCs) boosts the firm’s rules to allow the OPCs to grow. It excludes any limitations on the paid-up capital and turnover, permits their conversion to other classified companies, lowers the residence limit for Indian citizens to settle an OPC to 182 days to 120 days, and allows the Non-Res (NRIs to incorporate OPCs within India.

The fast track procedure to merge under the companies acts 2013 with Startups will also be extended. This factor is because merging with these companies can be completed at a quicker rate.

Latest Update under One Person Company

“The MCA issues notification regarding new Amendment Rules, 2021, for MGT-7 (OPC), and Small Company.”

The 1/04/2021 date will be included in the changes to OPC rules.

NRIs weren’t allowed to form OPCs in the past. Now, Indian citizens can form OPCs regardless of whether they are residing in India.

The proposed residency period for an Indian citizen is reduced to 120 days, compared to 182 days for NRIs.

It is strongly recommended that the rule regarding voluntary conversion be removed unless OPC has been completed within 2 years of the date of incorporation. This move is effective from April 1, 2021. Conversion of one company into a public or private firm or the public firm is permitted. The minimum number of directors and members is raised to 2, or min. 7, and the maximum to 3, depending on whether there is an increase in the minimum number of directors and members.

OPCs are exempted from the limitations on their turnover and paid-up capital. This move is because there are no restrictions on OPCs’ growth in turnover and paid-up capital.

Rationalization of OPC-related e-forms through refusal through e-Form No.INC-5, and modification to e-form INC-6 (appeal to convert from OPC to Private company or Public company and Private company into OPC).

Annual Filing Forms Due Date OPC (One Person Company).

Form AOC-4: Within 180 Days of the close of the FY, which is September 27 for each year.

MGT-7A Form: Within 60 Days of the entry date for resolution, i.e., the signing provided by the member, to opt-in for the financial statements within the minute’s books. [As per section 122(3), deemed date of AGM]

Form ADT-1: For the case in which the appointment of an auditor is necessary in the ordinary case, the form will be submitted in 15 days starting from the date of resolution that the member signed to appoint an auditor within the minute’s book (deemed date of AGM according to section 122(3)).

KYC of DIR-3 September 30 each year.

Notice: The last date for furnishing the form is not required.

  • MGT 7A will not be available by November 26.
  • ADT-1 will not be available until October 12.
  • OPC is obliged to file form AOC-4 within 180 days of the end of the financial year. This move means that the member must get financial statements no later than September 27. The date of the financial statements is taken from the AGM deemed date as per section 122(3).

Deadline for signing minutes

  • AOC-4 MGT-7A ADT-1
  • 10.09.2021 27.09.2021 09.11.2021 25.09.2021
  • 25.09.2021 27.09.2021 24.11.2021 24.11.2021
  • 27.09.2021 27.09.2021 26.11.2021 12.10.2021

Notice: The AGM’s conduct is not considered for OPCs. This factor is because the AGM’s last date is not extended. The annual filing must be done as normal.

Steps to Register a One-Person Company (OPC)

  1. Step 1: Apply to DSC.
  2. Step 2: Apply to (DIN), Director Identification Number.
  3. Step 3: Approve your Name.
  4. Step 4: Documents required.
  5. Step 5: Filling forms with MCA.
  6. Step 6: Issuance of a Certificate of Incorporation.

General Queries for One Person Companies (OPC)

What does One Person Company mean?

Section 2 of the Companies Act 2013 One Person Company states that there can only be one director for a company. However, it cannot have more than one director. It will lose its status as OPC Company, and it will begin to not comply with procurements under the Companies Act 2013, 2013 associated with One Person Company.

What are the benefits of a One Person Company (OPC)

  • Legal status and social acknowledgment for business.
  • Administration of the Company.
  • Different Property.
  • Limited Liability.
  • Autonomy.
  • Independent Existence.
  • Compliance burden reduced.
  • It is easy to obtain financial support from banks or other financial institutions.
  • For everlasting succession.
  • Flexibility in tax and savings.
  • Trust between client and customer is built.

What credentials are required for a One Person Company (OPC business)?

  • Address Proof of member/director proposed (self-attested).
  • Identity Proof of the proposed director/ member (self-attested).
  • Aadhaar card for proposed director/ member (self-attested).
  • PAN Card of the proposed director/ member (self-attested).
  • Photo of the proposed director/ member (self-attested).
  • Email ID of the proposed director/member.
  • Telephone number of the proposed director/ member.
  • It is easy to obtain financial support from banks or other financial institutions.
  • Proof of the registered office and proof of ownership.
  • NOC from the owner of the utility bill is not more than two months old.

How do you plan to include One Person Company?

Here is how to consolidate a One Person Company (OPC).

  • Approval of the name for the One Person Company (OPC),
  • As per The Companies Act 2013, documents can be collected and signed as required.
  • Furnishings for establishment and documents uploaded on the MCA portal.
  • Proving the Certificate of incorporation to the Registrar of Companies (ROC).

How long does it take to be enrolled in the One Person Company?

After all formalities and credentials have been completed, the procedure takes 7-10 days in India.
The Ministry of Corporate Affairs can assist with incorporating a company earlier.

What fees are required to furnish a One Person Company?

The company’s authorized capital is required to pay the fees associated with incorporation. It will therefore vary from one case to the next.

Is there a restriction on a One-Person Company?

  • High tax rates.
  • Consistency cost.
  • The name includes the OPC word.
  • One Person Management.
  • High turnover is not possible.

Can the Person’s Company be made private or public?

One Person Company can be converted into a private or publicly traded company by satisfying the eligibility requirements. It is required that One Person Company have a minimum of 50 lakhs inequity and a yearly turnover greater than 2 crores.

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