OPC Company Compliance - Renit Advisors

OPC COMPANY

As the name suggests, One Person Company is a type of Private Company which can be formed only by a Natural Person who is resident of India. One Person will act as the Director as well as shareholder of the Company. As the concept of OPC is quite famous and prevailing in outside countries also, therefore, India has also provided a path for registration of OPCs considering the ease of doing business.

Benefit of forming One Person Company it is ideally a great concept to go ahead for the persons who believe in lesser hardships of compliances, lesser intervention of other persons/Directors and running their business solely by forming an entity.

Nominee

Just like while opening a Bank Account you nominate some other person, here also lies the concept of Nominee.

Compliances

As compared to a Private Company, one-person company which is like sub domain of private company having lesser compliances like less Board Meetings, No Annual General Meeting and certain other exemption in compliances.

Sl. No.	Particulars	Status
1.	Form INC-20A	Form in respect of commencement of Business within 180 days of incorporation
2.	Stamp duty on Share Certificates	Payment of stamp duty is to be made within 30 days from the issue of share certificates
3.	Board Meeting	Minimum Two Board Meetings Atleast one Board Meeting in each half of calendar year and gap between two meetings is not less than 90 days
4.	Annual General Meeting	No such requirement to hold AGM as OPC is exempted from holding Annual General Meeting
5.	MBP-1	Disclosure of interest is required to be given in the first Board Meeting or where ever there is any change by every Director of Company
6.	DIR-8	Declaration in form DIR-8 that director is not disqualified is required to be given in every financial year
7.	Statutory Registers, Minutes Books and Records	Maintenance of mandatory statutory registers, minutes Book and other secretarial records is required to be done
8.	Form AOC-4 (Financial Statements)	180 days from end of financial year i.e. 31^st March
9.	Form MGT-7 * (Annual Return)	180 days from end of financial year i.e. 31^st March
10.	Income Tax Return of Company	30^th of September of each financial year
11.	DIR- 3 KYC (Directors KYC)	30^th of September of next financial year
12.	ADT-1 (Auditor’s Appointment)	Auditor will be appointed for 5 years
13.	E-Form MSME-I (Half Yearly Return)	Every Company having outstanding payments dues to micro and small enterprises and in case the payment of the same is pending beyond 45 days, then the Company has to furnish details as per the following timeline: For April to September by 31st October For October to March by 30th April
14.	E-Form DPT-3 (Return of Deposits)	All the Company having any outstanding loan/amount as on 31st March of every financial year has to furnish details and bifurcation of such outstanding amount irrespective of the fact whether such amount is falling under the definition of deposit or not by 30^th June

Documents Required for OPC Company Compliance

1. PAN Card

2. Aadhar Card

3. Photo ( Of Director and Nominee)

4. Latest Bank statement or any bill that bears the name of the Director or the nominee

5. Latest Bill for the office address.

FREQUENTLY ASKED QUESTIONS (FAQS)

What is the role of the nominee in an OPC?

A nominee is an individual who becomes a member of the company in case of the promoter’s death or incapacitation.

What is Authorized Capital Fee?

Authorized Capital of a Company is the number of shares a company can issue to the shareholders. A Company is required to pay the Government an authorized capital fee to issue shares.

How to speed up the Incorporation process?

Ensure that the name you choose is unique and you have all the required documents before the process of incorporation for speedy incorporation.

What is a Dormant Company?

If the annual compliances are not met with the becomes a Dormant Company and can be struck off after some time. A Struck company can be revived for a period of up to 20 years.

What is DSC?

The DSC establishes the identity of the sender or the signee electronically while filing the document online.

The MCA mandates that the Directors sign some of the application documents using their Digital Signature.

What is the Director Identification Number?

It is the Unique Identification Number that is assigned to all existing and proposed Directors of a Company.

All proposed Directors must have Director Identification Number The DIN never expires and a person can have only one DIN.

Is a Private Limited Company better than an OPC?

OPC is a Company that has a separate existence and is owned by one single member. One person happens to be a mixture of proprietorship and company form of business.

Is Audit compulsory for OPC?

For an OPC statutory audit is mandatory. A company needs to appoint a CA as the auditor of the Company.

The auditor needs to verify the books of accounts and issue a Statutory Audit report.

Is GST mandatory for OPC?

GST registration for a Person Company is necessary if the supply of goods or services is in another state irrespective of annual turnover.

Can OPC raise funds?

An OPC can raise funds through venture capital, financial institutions.

An OPC can also raise funds by converting into a Private Limited Company.

What is the difference between Sole proprietorship and OPC?

In a Person Company, a single person runs a company limited by shares whereas a Sole Proprietorship means an entity that is run by one individual, and the owner and business are considered as the same entity.

Is it necessary for OPCs to conduct Annual General Meeting?

Except for OPCs, all entities are required to conduct an Annual General Meeting every year.