OPC Compliance Requirements
It is a company incorporated by one person. This type of company can be formed with only one director and one member, as per Section 2(62) of the Company’s Act of 2013.
The OPC structure was introduced to allow a sole entrepreneur to start and manage a limited liability entity. That is why it has been created.
Compliance Requirements for an OPC
CORPORATE STATIONERY
Upon registration, it is recommended that one purchases the following stationery:
Beyond its place of business, an OPC is required to present the company’s name.
Company boards: All companies, including OPCs, are required to display their name outside their location.d resolutions, etc. Purchase a round-shaped rubber stamp and a straight rubber stamp with the company’s name and director’s name.
Letteboards: All companies, including OPCs, are required to display their name outside their location. of all invoices, notices, circulars, and other official documents.
OPC PAN APPLICATION
The first step after an OPC is incorporated is to obtain a PAN number. A duly signed application must be submitted to NSDL by the director of the OPC. The incorporation certificate must also be self-attested along with the PAN application. From the date of receipt of the application, the entire process of obtaining a PAN card can take around 15 days.
OPENING OF BANK ACCOUNT
You can open a bank account for your OPC fairly easily. Since it is a corporation recognized by the Companies Act. Registrations and tax forms are not required.
The RBI’s KYC regulations need to have the following documents for the opening of a bank account:
- Self-attested copies of the OPC’s incorporation certificate
- Memorandum of association
- Association Articles
- A decision to open a bank account in the OPC’s name.
- A copy of the PAN allotment letter
- ID proof of the director
- 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
A chartered accountant must be appointed for the purpose of auditing the financial documents and statements of the OPC within 30 days of incorporation.
As the statutory audit is a requirement for an OPC. In addition, an OPC must appoint a statutory auditor within 15 days of holding its first Annual General Meeting via form ADT-1.
ANNUAL MEETING
It is not necessary for OPCs to hold general meetings every year, unlike other companies. In addition, OPC meetings do not require a quorum.
As there is only one director on the board, a resolution passed by the director can be entered into the minutes book. Once approved by the sole director, this resolution is considered the firm’s general meeting.
However, it is important to remember that, as per Section 173 of the Act, a board meeting should be held in every half of the year and the interval between meetings should not be less than 90 days.
ANNUAL OPC Documenting (MGT-7)
The OPC is obliged to disclose annual reports to the Company registrar.Form MGT-7 should be attached to the return and filed with the ROC.The business secretary should sign it as well.If there is no company secretary accessible, the director must sign the return.. Each OPC registered in India is required to file the return annually.
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)
Within 180 days of the end of the financial year, OPCs must file the following audited documents with the Registrar of Companies:
- Balance sheet
- Accounts of profits and losses
- Audit report
- Records of any change in equity
- Any document that needs an explanatory note.
In the case of an OPC, the need for a cash flow statement is optional and not mandatory.
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 to ensure that all of your compliance requirements are handled smoothly.
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