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Appointment of Director
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Change in Designation of Director
Shifting Registered Office of Company
Shifting Registered Office of LLP
Dormant Status of Company
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Annual Filings of LLP
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Proprietorship to OPC
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Compliance Xero
Different Compliance Requirements By One Person Company (OPC) in India
Different Compliance Requirements By One Person Company (OPC) in India
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Different Compliance Requirements By One Person Company (OPC) in India. A Company is a legal body founded by an individual or a group of individuals to manage a commercial or industrial enterprise. It can be both private and public. A corporate body, such as a public corporation or a private company, requires two or more persons to participate, but a one-person company requires just one member to handle the business, making it a more realistic alternative for those searching for an unregistered proprietorship. One Person Company, as the name implies, is a type of Private Company that can be founded solely by a Natural Person who is a resident of India. The Company's Director and Shareholder can be the same person. The concept of OPC is well-known and prevalent in other countries already and taking it further, India has also established a roadmap for Registration of OPCs in consideration of the ease of conducting business. The Companies Act, 2013, has a significant impact on India's corporate law system by adding previously unknown concepts. One Person Company is a novel concept created by the Companies Act of 2003. It enables an individual to form a corporation, with one Director (can be more than one director) and one Shareholder. In this post, we will go over the various Compliances required for a One Person Company after formation, Regular Compliances, as well as the distinction between a Normal Company and a One Person Company. Definition Section 2 (62) of the Companies Act of 2013 explains one-person companies. It defines a "One Person Company" as "a company with only one member." Any individual of majority age and a citizen of India, whether a resident or not, i.e. an NRI, is eligible to form a One Person Company in India. A single person gets complete control of the corporation, limiting his obligation to their contributions to the enterprise. Note: Earlier, if a One Person Company made a turnover of 2 crores or more three times in a row or receives a paid-up fund of 50 lakh or more, it must be changed into a Private Limited Company or a Public Limited Company within 6 months. However, this compulsion of compulsory conversion has been done away. Difference between a one person company and a normal company The fundamental distinction between a One Person corporation and a normal company is the minimum and maximum number of members. A one-person corporation, as the name implies, has just one owner, whereas a normal company must have a least of 2 members in case of Private Limited and 7 members in case of a public company. One Person has 100 percent of the share capital and share profit in a One Person corporation. In a normal company, the rights to share capital and profits are distributed among all shareholders in accordance with the articles of incorporation and are owned by one person. Transfer of shares is not permitted in a one-person firm, but in a normal company, owners may transfer shares. A One Person Company can have as few as one director and as many as fifteen, whereas a normal company can have as few as two directors (Private Limited) and three (Public Company) directors and as many as fifteen. The number of 15 can also be increased by passing special resolution. A One Person Company's name must include "OPC," whereas a normal Company's name must include "Private Limited or Limited." A one-person firm cannot raise cash by issuing shares of the company, but a normal company can issue its shares, making it easier for them to raise funds. Different compliance criteria that a one-person company in India must fulfill The fundamental reason for adopting this new idea of a One Person Company in the Companies Act, 2013 was to promote small businesses run by individuals. Since the adoption of the new Companies Act 2013, One Person Companies have grown in popularity in India as a means for various entrepreneurs and inventive individuals to conduct business or provide services. Business stationery Name All companies, including One Person Company (OPC) , must affix or paint the name of the company and the address of its registered office outside each branch where it conducts business. Rubber Stamp A company rubber stamp is necessary for the execution of numerous legal documents such as bank account opening, Board Resolutions, and so on. The company's name should appear on the stamp. Letterhead It is critical that the words "OPC" appear alongside the company's name wherever it is printed, attached, or engraved along with CIN, Registered Office Address, Email ID and Mobile Number. PAN and TAN for One Person Company (OPC) As per the latest changes made by MCA to bring about Ease of Doing Business in India, now with the Certificate of Incorporation, PAN & TAN are also issued simultaneously by the NSDL Office. The Soft copy of PAN and TAN are also received on the Company’s registered email address. Account Opening of Bank Account for OPC Opening a bank account for an OPC is less difficult than for other corporate entities. According to RBI KYC guidelines, these documents necessitate the opening of a current account in the name of an OPC. Copy of Certificate of Incorporation Memorandum of Association (MOA) Articles of Association (AOA) Copy of PAN KYC of Promoter BR to open current account All of these documents must be self-certified and stamped with the firm stamp. Note: MCA has brought Integrated SPICe + along with AGILE wherein during incorporation of OPC, there is an option to select the bank where the company wants to open its current account. Appointment of First Auditor Within the first 30 days of incorporation, all companies, including an OPC, must appoint the first Auditor, a practicing Chartered Accountant. His job is to audit the company's financial statements. Issuance of Share Certificate Following the establishment of the company, Share Certificates are issued as proof of ownership. Every certificate is signed and sealed with the company stamp by the director or another authorized person. Mandatory OPC Compliances Meetings Under Section 173 of the Companies Act of 2013, every One Person Company is required to convene at least one board meeting in each half of the calendar year, with a minimum interval of 90 days between these two meetings. If a corporation only has one director, there is no need to hold these meetings; the owner can just pass the resolution and record it in the minutes' book, which is sufficient to meet the need. Notice of Interest Every fiscal year, the Company’s Director must disclose his stake in other Companies/LLPs at the first Board Meeting. He must notify the company of his change of interest. Form MBP-1 must be maintained for such notice. Statements of Financial Position One-person companies must prepare and file the following financial statements with the ROC in prescribed form AOC-4 within 180 days of the end of the fiscal year (September 27): Financial statements Profit and loss statement Any explanatory remark that is part of a financial statement must be signed by the Director. Filing of Annual Return Every year, all One Person Companies are required to file an Annual Return containing particulars with the ROC on the stipulated form MGT-7A by September 27. It should be signed by the company secretary; if there is no CS, the document can be signed by the director. Income Tax Return A One Person Company must file income tax returns in form ITR-6 with the Income Tax Department. Employees' registration for state insurance According to the ESI legislation, 1948 (Employees State Insurance Registration Act), any business entity, including OPC, is required to register under the ESI act, 1948 if it employs more than ten people. It is now part of the Company Registration Process itself. The same is for EPF as weal. GST Return If a One Person Company has a GST registration, it must file all GST returns on time. The GST return filing due date varies by state, although reports are typically filed on a monthly basis. Benefits of OPC Legal status The OPC is treated as a separate legal entity from the member. The OPC's unique legal entity protects the sole individual who has incorporated it. The member's liability is limited to his/her shares, and he/she is not personally accountable for the company's loss. As a result, creditors can sue the OPC rather than the member or director. Easy to obtain funds Because OPC is a private company, it is simple to raise funds from Banks. Later on if any venture capitalists, angel investors, incubators, and other sources want to invest in equity, the OPC can be converted to a Normal Private Limited Company. Banks and financial institutions prefer to lend to corporations rather than sole proprietorships. As a result, obtaining finances becomes simple. Less compliances The Companies Act of 2013 exempts the OPC from certain compliance requirements. The OPC is not required to prepare the cash flow statement. Further, there are various exemptions on meetings compliances. Easy incorporation It is simple to incorporate OPC because just one member and one nominee are necessary. The member can also be the director. To support the Startup Ecosystem, the minimum capital required to form a company has been removed. Now, one can register OPC with any capital they want to start with. Simple to manage Because the OPC can be established and controlled by a single person, it is simple to manage its affairs. Making decisions is simple, and the decision-making process is rapid. Ordinary and special resolutions can be readily passed by the member by inserting them into the minute book and signing them. As a result, running and managing the company is simple because there will be no disagreement or delays. Indefinite succession Even when there is only one member, the OPC has the feature of eternal succession. The single member must appoint a nominee while incorporating an OPC. When a member dies, the nominee takes over as Member of the OPC. How CCL can help with One Person Company (OPC) Compliance? Compliance Calendar LLP can assist your OPC company in annual compliance with the Ministry of Corporate Affairs. Not only this, but we also have dedicated team who can look after your books of account, taxation, audit and all other mandatory compliances. CCL compliance experts can also assist with yearly return preparation, verification, and submission under the GST Law. Conclusion Prior to the implementation of the Companies Act in 2013, a single individual could not form a business. With the introduction of OPC Registration, this aided many new aspiring entrepreneurs and individuals in forming their business enterprises and giving their ideas flight. It not only helps the country's economy, but it also raises the morale of young people. Previously, the sole proprietorship was an individual's only option for establishing his or her firm or business. A minimum of two directors and two members were necessary to form a Private Limited Company. By passing a resolution and increasing the number of directors and members to two, an OPC can be changed voluntarily into a private limited company. Conversion also necessitates a no-objection certificate from the creditors. If you have any queries, we would love to answer them at info@ccoffice.in or connect wit us at 9988424211.
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Start Your Business
Private Limited Registration
Public Company Registration
OPC Pvt Ltd Registration
LLP Firm Registration
Section 8 Company Registration
Nidhi Company Registration
Insurance Company Registration
NBFC Company Registration
Producer Company Registration
Foreign Subsidiary Registration
Foreign Branch Office
Foreign Liaison Office
Foreign Project Office
Overseas Company Registration
Proprietorship Firm Registration
Partnership Firm Registration
Grow Your Business
GST Registration
MSME Registration(UDYAM)
Shop & Establishment Registration
Startup India Registration
ESI/PF Registration
IEC Code (Import Export)
Startup Consultation
Appoint Virtual CFO
Angel Funding/ VCs
Virtual Office Service
Due Diligence of Company
Business Development
Protect Your Business
Trademark Registration
Trademark Objection
Trademark Hearing
Trademark Opposition
Trademark Infringement
Trademark Renewal
Trademark Assignment
Trademark Withdrawal
Trademark Monitoring
Logo Design Service
Copyright Registration
Patent Registration
Exit Your Business
Close Company
Fast Track
Close LLP
Close Firm
GST Cancellation
Change Services
Change Company Name
Change LLP Name
Change Company Object
Change LLP Object
Increase Authorised Capital
Increase Paid-up Capital
Increase LLP Capital
Transfer of Shares
Alteration in MoA & AoA
Resignation of Auditor
Appointment of Director
Resignation of Director
Change in Designation of Director
Shifting Registered Office of Company
Shifting Registered Office of LLP
Dormant Status of Company
Mandatory Compliances
Appoinment of Auditor
Annual Filings of Company
Annual Filings of LLP
Annual DIN/DPIN KYC
Annual Return of Deposits
Half Yearly MSME Return
Statutory Registers & Minutes
XBRL Filing of Companies
eStamping of Share Certificates
Dematerialisation of Shares
RBI FEMA Compliance
GST Returns Filing
ESI-EPF Returns Filing
TDS Returns Filing
Change in Structure
Proprietorship to OPC
OPC to Private Limited
Private Limited to OPC
LLP to Private Limited
Private Limited to LLP
Partnership Firm to LLP
Private Limited to Public Company
Public Company to Private Limited
Trust/Society to Section 8 Company
Existing Company to Section 8
Existing Section 8 to Company
Services
Accounting & Book Keeping
GST Compliance
Valuation Services
Corporate Litigation
Company Law Advisory
Services For Banks
Drafting & Vetting Services
Startups Funding
Business Loans
Get in Touch
NBFC
NBFC Company Registration
NBFC Micro-Finance Registration
NBFC P2P Lending Registration
NBFC Core Investment Company
NBFC ROC Compliance
NBFC RBI Compliance
NBFC License Restoration
NBFC Business Plan
NBFC Acquisition
NBFC Consultancy
NBFC Compliance Calendar
NBFC Independent Director
ISO
ISO 9001:2015
ISO 14001:2015
ISO 13485:2016
OHSAS 18001:2007
HACCP Certification
CE Marking
GMP Certification
CMMI Level 3 Certification
ISO 22000:2005
ISO 27001:2013
FSSAI
FSSAI Registration
FSSAI State License
FSSAI Central License
FSSAI Registration Renewal
FSSAI License Renewal
FSSAI Returns Filing
FSSAI Compliances
FSSAI Consultancy
ITR
Salaried Person
Firms/LLPs
Companies
NGOs
Income Tax Notice
Income Tax Planning
Income Tax Litigation
Charity
Section 8 Company
Trust Registration
Society Registration
80G & 12A Registration
FCRA Registration
NITI Ayog Registration
CSR-1 Registration
CSR 2 Report
CSR Services
NGO Consultancy
NGO Handholding
Govt Grants Support
Partnership
Angel Investors
Venture Capitalists
Co-Working Spaces
Banks and NBFCs
Incubation Centres
Government Wings
Institutional Bodies
Software Companies
CA/CS/CMA/Lawyers
Press & Media Houses
Overseas Ventures
Other Startup Enablers
Contact Us