OPC Compliance Requirements and Checklist
The online OPC compliance process is quite seamless provided you get the right help. But first, a few details about exactly what is OPC compliance.
OPC stands for “One-Person Company”. Section 2 (62) of Companies Act defines an OPC as a company that has only one person as its member. A one-person company doesn’t mean that there is only one person working in the company, it just means that unlike a Private Company or a Public Company, you don’t have multiple founders in an OPC. There is just a single Owner.
When running a one-person company, you need to comply with various rules and regulations that are listed under the Companies Act, Income Tax laws, and other laws as applicable according to the nature of business.
Compliance may include getting the requisite permissions, maintaining your books, necessary registrations and filing income tax returns with the Income Tax Department and annual returns with the Ministry of Corporate Affairs. Additionally, compliance may involve meeting the expectations of TDS regulations, GST regulations, and many other legal obligations. Summarily, OPC compliance may include
- Income Tax Returns Filing
- ROC Filing (Annual Return)
- GST filing
- TDS filing
For a single person trying to do his business while keeping all his dealings clean and over the table may be a challenging exercise especially when he or she has to go through various bureaucratic channels during the OPC compliance process. Additionally, what OPC compliance processes one needs to go through also depends on your industry, in which state you do your business, how many employees you have and what is your annual turnover.
Fortunately, you can take care of your OPC compliance online these days.
Listed below are the steps you need to comply with OPC regulations:
- Filing of Income Tax Returns : Every OPC and Directors of OPC is required to submit their Income Tax Returns with the Income Tax Authorities before due date every year to avoid penalties.
- Appointment of Auditor: an auditor needs to be appointed for 5 years by submitting form ADT-1 to the Registrar of Companies.
- Filing of ROC annual returns: OPC should file its annual return for the period ending on 31st March every year, within 60 days of completion of AGM, They need to file e-Form MGT-7 to Registrar of Companies for filing of annual return
- Filing of annual accounts: Every OPC needs to file its balance sheet and, profit and loss account along with the director’s report. This must be filed within 180 days from the closing of the financial year. Form AOC-4 is to be submitted to the Registrar of Companies.
- GST Returns: Every GST registered businesses (i.e. OPC) has to mandatorily file three returns per month (GSTR-1, GSTR-2 and GSTR-3) in each state where they operate. An annual GST return is also required to be filed by all GST registered business. This means all One Person Company (OPC) will have to Submit 37 returns per annum in each state where they are trading.
- Tax Deducted at Source or TDS : is a source of collecting tax by Government at the time when a transaction takes place. Tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier and then detector deposits this TDS amount to the Income Tax department. TDS Return is mandatory if you are a detector, it contains the details of TDS deducted and deposited by you. It Means every OPC is required to submit the returns of the TDS if TDS is being deducted by the OPC.
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