One Person Company (OPC) is compulsorily required to keep up compliance according to the Income Tax Act and Companies Act. Subsequently, keeping up compliance for a One Person Company mainly incorporates filing of income tax return with the Income Tax Department as well as annual return with the Ministry of Corporate Affairs. Other Compliances includes compliance with TDS regulations, GST regulations, ESI regulations, and others. The compliance prerequisite for a One Person Company will vary based on the business, state of incorporation, number of staffs and sales turnover.
The Annual Compliances of One Person Company in India have covered the following compliances:
Annual Return in Form MGT 7.
Financial Statements in Form AOC-4.
Income Tax Returns in Form ITR-6.
MBP-1 for Disclosure of Interest by Directors.
Annual General Meeting (AGM).
At least 2 Board meeting( 6 monthly each).
ADT-1 for an appointment for Auditor.
Event-based Annual Compliances.
Annual Compliances under diverse Legal Authorities.
The Reasons For Annual Compliance of One Person Company
Income tax and Annual returns
Income tax filing an annual return filing should be completed by every One Person Company before 30th September of each financial year.
GST Filing
Under the GST regime proposed towards being incorporated in 2017, one person companies having GST registration will be required towards filing monthly, quarterly and annual GST returns.
ESI Return
ESI return should be filed through every one person companies having ESI registration. ESI registration is necessary once the one person company employs over 10 staffs.
TDS Filing
Quarterly TDS returns should be filed by one person companies that have TAN and are necessary to deduct tax at source as per TDS rules.
Related section with the latest amendment
Compliance with Companies Act 2013
Section 173(5) requires at least one board meeting in each half of the calendar year. The gap two meetings must not be less than 90 days. However, if the corporation has only one director then such meeting prerequisite does not emerge. OPC is required to hold its annual general meeting as required under section 139 (1) towards appointing Statutory Auditor. Such auditor must hold office from the conclusion of first AGM to the conclusion of 6th AGM.
Financial Statements of One Person Company under Companies Act 2013
Section 137(1) of Companies Act 2013 needs the corporation towards adopting its financial statements in a board meeting and filed within 180 days from 31st March of every year with the register of corporations.
Cash flow statement is not a compulsory part of financial statements for a one-person company.
The annual return of a one-person company should be signed by the company secretary, or where there is no corporation by the director of the company according to section 92 of Companies Act 2013.
Compliance under Income Tax Act 1961
One person company is necessary to file their income tax return in Form ITR 6 for the financial year on or before 30th September of the following financial year with the tax department. In case of any extension of the time limit, it is to be filed within that time limit.
Also to the annual tax return filing, every OPC is requisite to get their accounts audited under income tax act 1961 if turnover surpasses the limit as specified in section 44AB.
A one-person company might also need complying with TDS regulations, GST regulations, PF and ESI regulations and others based on the requirements.
