Under Companies Act, 2013, annual filing refers to yearly return which is to be completed according to the laws and regulations. Each and every company registered under Ministry of Corporate Affairs in ROC needs to complete filling particular form in prescribed format.
At least 1 board of directors' meeting should be organized in half of every year.
A newly incorporated company should organize its annual general meeting :
Within 18 months since the date of registration
9 months since the closing of the financial year whatever is earlier.
Afterwards, Annual General Meeting should be organized within 6 months since the completion of that financial year.
Every One Person Company must inform Registrar of Companies about its income and expenditure and other relevant details of the company annually. Due to this, it is must to perform the compliances else penalty will be imposed for that.
In order to complete financial statement – Form AOC-4
To fill the Annual return - Form MGT-7
The financial statement of One Person Company should be filed within 180 days since the end of the financial year.
Annual return should be filed within 60 days since the completion of Annual General Meeting.
Invoices of expenses during the year
Invoices of purchases and sales in the year
Bank statements from 1st April to 31st March for company's all bank accounts
Credit card statements when expenditures are incurred by the company director
Photocopy of deposited TDS Challans if there is any
Photocopy of filed GST returns if there is any
Copy of filed TDS returns if any
Address and identity proof will be needed for all directors and shareholders of the company that is to be incorporated. PAN is compulsory in case of Indian nationals. In case of foreign nationals, notarised or apostilled copy of passport must be submitted. All the documents which are submitted should be valid. Proof of residence like electricity bill or bank statement should be within 2 months.
All companies need to have a registered office in India. In order to prove access to the registered office, any one of the following documents must be submitted :
Property tax receipt
Following documents should be submitted for using the office as a registered office of the company :
Along with the utility bill, sale deed or rental agreement and a letter from the landlord containing his or her consent.
Step 1 – Documentation
Step 2 – Completion of Balance Sheet and Income Tax Return
Step 3 – Preparation of Board Resolution, Notice and Minutes of Annual General Meeting
Step 4 – Filling Form ADT
Step 5 – Form AOC-4
Step 6 – Form MGT-7
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Limited Liability - Shareholders are only responsible for their share of money they invested in the company. Personal assets of shareholders are secure.
Separate legal entity - The members of an OPC have no responsibility to the creditors of One Person Company for debts. The death, bankruptcy or withdrawal of capital by one member does not affect the capability of OPC Company to trade.
Reduced compliance - Compliance process is easier as they are given a lot of exemptions as compared to Private Limited Company. Information to the Registrar Of Company in comparison to other structure is very less.
Taxation - There are a lot of allowances and tax deductions that can be compensated against the profits of an OPC. The tax would be paid after deducting certain expenditures incurred by members. As well as that the current level of Corporation Tax is lower than income tax rates.
Easy to transfer of company – The entire share holding can be transferred by OPC to any concerned person. These changes of ownership, saves time and money. If the member dies, the nominee undertakes the affairs of the company so automatically holding of member will be transferred to nominee.
Easy to acquire fund - Banking and financial institutions choose to lend money to the company rather than proprietary businesses. In many cases, Banks insist the entrepreneurs to convert their business into a Private Limited company in order to sanction funds. So it is recommended to register your start-up as a One Person private limited rather than proprietary business.
One Person Company (OPC) is commenced by the Companies Act, 2013. The expert committee of Dr. J. J. Irani recommended this concept in 2005. This has quickly become admired legal structure for businesses and it includes the advantages of sole proprietorship and corporate status. OPC is called a company that contains only one person as its member.
Need of money for an OPC is not of a major factor during its registration phase. An OPC can be started with any amount of capital as there is no need to produce proof of capital invested during the incorporation process.
Registration procedure of One Person Company is similar to Private Limited Company where rules and regulation are controlled by the Ministry of Corporate Affairs.
Nominee can be anyone, like your father, mother, spouse, daughter, brothers, sisters and others but they should possess appropriate identity proofs such as Voter ID, PAN card or Passport or Driving License etc., to be appointed as Nominees for One Person Company.
A Nominee can be changed with proper intimation and filing of essential forms with Registrar of Companies.
At least 1 director is required while starting a One Person Company while maximum 15 Directors can be there for your OPC.
No, you cannot form more than 1 One Person Company and nominee of your company cannot be appointed in any other One Person Company.
A person can become member in only 1 One Person Company.
Only a natural individual who is an Indian resident or citizen of India is eligible to act as a member and become nominee of an OPC.
Following individuals cannot form an OPC:
Indian Non resident
A person incapacitate to contract
If the member deceases, the nominee undertakes the affairs of the organization and within 15 days, the company must inform the Registrar of Companies by filing Form INC-4 with recommended fee.
If the paid up share capital of an OPC is more than 50 lakh rupees or its average annual turnover of preceding 3 consecutive financial years crosses 2 crore rupees, then the OPC has to be converted itself into private or public company compulsorily.
The director and shareholder can be same individual
Digital Signature Certificate of all the Directors
Director Identification Number of all the Directors
Minimum Share Capital shall be Rs. 1 Lac
No, foreign direct investment is not allowed for One Person Company. If it is used then it will lose its entity of One Person Company.
Under the Companies Act 2013, provision to organize annual general meeting for an OPC is not compulsory.
Yes it is compulsory for One Person Company to file annual return with recommended forms to Registrar of Companies every year.
If any company cannot file annual compliance on time, a penalty will be imposed that includes an additional fee of Rs. 100 per day for each form. Continuous non-payment of annual compliances can cause director disqualification, fine & imprisonment and strike off of company.