All one needs to know regarding the compliances of companies: an OPC and Private Limited

One Person Company Compliances refers to the filing of various documents on a yearly basis. One person company can be established by a single person only, who can act as a director as well as a member at the same time. There were no specific provisions for forming a One Person Company in the Old Companies Act 1956. But with the introduction of the New Companies Act 2013, the One Person Companies (OPCs) are quickly becoming prominent in entire India for colluding or providing services in different economic verticals by individual and innovative entrepreneurs or executives.

The OPC Annual Compliances in India is less as compared to other countries, and cover the following main compliances:

●     Annual Return in Form MGT-7

●     Accounting Statements in Form AOC-4

●     Income Tax Returns in Form ITR-6

●     Event-based Annual Compliances

●     Annual Compliances under diverse legal authorities

The Process Involved in Annual Compliances Filing for One Person Company in India:

The One Person Company Annual Compliances, are to be made via the following Forms and within the specified timelines that are mentioned hereunder:

●     Filing Annual Return (Form MGT-7) with the Registrar of Companies (ROC):

This is one of the most important ROC return filings for OPC company containing the Statement of Disclosure of Shareholders and Directors. You must file a federal tax return within 60 days of holding the Annual General Meeting (AGM). If the AGM did not transpire, you need to file a return within 60 days of the date on which AGM should have taken place. Such Annual Returns are signed by the Company Secretaries or if a qualified CS is not there then by the BOD of the company.

●     Filing of Financial Statements (Form AOC-4) with the Registrar of Companies (ROC):

This is to be filed with relevant ROC, containing all the financial transactions and finance-related verified accounts of the OPC in the mentioned accounting year. In the case of an OPC, the annual financial reports contain only the following particulars — Balance Sheet, Profit and Loss Account, Auditor’s Report, and the Consolidated Financial Statements. Form AOC-4, the due date is within 180 days from the end of the Accounting Year. This means that the last date for filing AOC 4 will be 30th October of the following fiscal year. Such accounting statements are signed by the Director. In section 137(1) of the Companies Act 2013, it is obligatory for the company to adapt its financial statements in a board meeting and signed by the directors.

●     Filing Income Tax Returns (Form ITR-VI) with Income Tax Department:

This is to be put on record with the Income Tax sector, in Form ITR-6, by the OPC. For ITR-6, the due date is 30th September of the Assessment Year. For instance, for the financial year 2017-18, tax returns in Form ITR-6 have to be filed on or before 30th September 2018. The tax audit will be statutory if the yield of the OPC exceeds INR 2 crores.

What are the compliances required in a Private Limited Company??

The online private limited company compliances are:-

●     Maintaining statutory registers

●     Minutes of Board Meeting books

●     Minutes of AGM books

●     Creditors meeting

●     Debenture holder meetings are obligatory.

In addition to the above-mentioned mandatory compliance filings, some of the non-ROC compliances for private limited companies are:

●     TDS/TCS payment

●     Advance tax payment