Introduction:
The introduction of the One Person Company (OPC) model has revolutionized entrepreneurship in India by providing a simpler legal framework for micro-businesses.
This model encourages individuals to venture into business without the burden of complex legal requirements, allowing them to focus more on their entrepreneurial pursuits rather than on compliance matters.
Key Requirements for OPC Compliance:
1. Registered Office:
An OPC must have a registered office capable of receiving communications. This must be established within 30 days of incorporation if details were not submitted during incorporation.
2. Company Merchandise:
The name of the OPC must have “OPC” mentioned in brackets wherever its name is printed, affixed, or engraved.
3. Memorandum of Association (MOA):
The name of the nominee should be included in the MOA.
4. Board Meetings (BM):
An OPC must conduct at least one board meeting in each half of the calendar year, with a gap of at least 90 days between two meetings.
5. Annual General Meetings (AGM):
There is no requirement to conduct an AGM for OPCs.
6. Auditor Appointment:
An auditor must be mandatorily appointed by the OPC within 30 days of incorporation.
7. Annual Filing:
OPCs must file financial statements including the Balance Sheet and Profit & Loss in Form AOC-4 and the Annual Return in Form MGT-7A. These filings must be made within specific timelines, calculated from the date on which the AGM should have been held.
FAQs about Mandatory Compliances for OPCs:
1. Compliance Requirements for OPCs:
OPCs must comply with various rules and regulations under the Companies Act, 2013, including filing of annual returns, financial statements, etc.
2. Mandatory Requirements for OPC:
OPCs must have a single shareholder and director, and appoint a nominee in case the director is unable to function.
3. Eligibility Requirements for OPC Membership:
Only Indian citizens residing in India are eligible to act as members and nominees of an OPC.
4. Mandatory Audit for OPC:
Yes, audit is mandatory for all types of companies, including OPCs.
5. Compliance Cost for OPC:
The compliance cost for OPC varies based on factors such as company size and professional services hired for compliance.
6. Legal Compliance for OPC:
Legal compliance includes annual filings, GST, income tax compliance, etc., to meet all legal and regulatory requirements.
7. Appointment of Auditor for OPC:
Yes, OPCs are required to appoint an auditor as per the Companies Act.
8. Documents Required for Annual Filing:
Documents include financial statements, auditor’s report, board report, etc., essential for meeting legal and regulatory requirements.
9. Mandatory AGM for OPC:
No, OPCs are not required to hold an Annual General Meeting.
10. Validity of OPC:
OPCs have perpetual validity, but annual compliance is necessary for continuous operation and legality.
11. Timelines for MGT-7A and AOC-4 Forms:
OPCs must file MGT-7A and AOC-4 forms within specific timelines from the date of the last AGM or from the due date of the AGM if not held on time.
Conclusion:
Understanding and adhering to the compliance requirements for OPCs is essential for ensuring smooth operations and legal validity.
By simplifying compliance procedures, the OPC model empowers entrepreneurs to focus on business growth and innovation, driving economic development and prosperity.
