One Person Companies (OPCs) are becoming more well-known as a successful business model for sole proprietors. OPCs have limited liability and are treated as a separate legal entity because they only have one member. OPCs are nevertheless subject to OPC annual filing that guarantees adherence to legal and regulatory norms, just like any other corporate entity.
OPC Annual Filing have lower compliance costs since they have fewer compliance standards than Private Limited or Public Limited Companies. OPCs are obliged to submit Annual Return for One Person Company i.e. MGT 7A and AOC 4 annually, respectively. In this article we will learn more about these forms’ contents and respective OPC Annual Filing Due Date.
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Guide to One Person Company (OPC)
The Companies Act of 2013 established the idea of a One Person corporation (OPC), which allowed the creation of a company with a single person serving as both its director and shareholder. This was a change from the Companies Act of 1956, which mandated the presence of a minimum of two directors and shareholders for the incorporation of a company. With the advent of OPCs, small enterprises and entrepreneurs now have a one-of-a-kind chance to create a distinct legal organization with limited liability, even if only one person is in charge.
Benefits of Annual Filing of OPC
Following are some key benefits of Annual Filing of OPC-
- Instilling confidence in financial investors through proper Annual Filing of OPC makes it simpler to garner support for the company.
- Annual Compliance for One Person Company that are timely and accurate, aid in maintaining the Company’s active status.
- Heavy fines and penalties may be imposed for non-compliance or filed after OPC Annual Filing Due Date. The prevention of such penalties is made possible by maintaining OPC Annual Filing.
Goal of Annual Compliance in One-Person Companies
- To avoid penalties and fines, Annual Filing for OPC must be done within OPC Filing Due Date.
- Failure to comply with Annual Filing for OPC within due date may result in legal consequences, inquiries, and adverse effects on the Company and its directors. OPCs should be aware of and comply with every law from the time of incorporation.
- Respecting OPC Annual Filing obligations shows shareholders and investors that the company is transparent and accountable.
- In order to deliver trustworthy information to stakeholders, accurate financial reporting is required.
Annual Filing of OPC
Form AOC 4 for OPC:
- One of the most crucial Annual Filing of OPC is E-Form AOC 4 that includes all of the financial transactions and financial information for the relevant financial year. The balance sheet, profit and loss account, auditor’s report, and consolidated financial statements are all included in the annual financial report.
OPC Annual Filing Due Date for AOC 4:
- Regarding the OPC Annual Filing Due Date for submission for AOC 4 for OPC for FY 2022–23, it must be submitted to the appropriate Registrar of Companies (ROC) within 180 days of the end of the financial year.
- Therefore, if we use April 1, 2023 as the starting date for counting 180 days, OPC ROC Filing Due Date for submitting E-Form AOC 4 for OPC for FY 2022–23 will be September 27, 2023.
Form MGT 7A for OPC:
- For One Person Companies (OPCs) and Small Companies, Form MGT 7A was introduced by MCA on March 5, 2021, through the Companies (Management and Administration) Amendment Rules, 2021.
- OPCs and Small Companies must submit Form MGT 7A to the appropriate Registrar of Companies (ROC) on an annual basis as a part of Annual Filing of One Person Company.
- The most recent list of OPC directors and shareholders can be seen on this form.
OPC Filing Due Date for MGT 7A:
- OPC Filing Due Date to file Form MGT 7A for OPCs for the financial year 2022–2023 is 60 days after the date of the annual general meeting (AGM).
- OPCs are not required to hold a AGMs, although the OPC ROC Filing Due Date for filing Form MGT 7A still counts toward the regular AGM date.
- For instance, according to the MGT 7A aid kit, if the AGM is scheduled for September 30, 2023, the due date for submitting ROC Form MGT 7A for the financial year 2022–2023 is November 28, 2023.
Penalty for Late Filing AOC-4 and MGT-7A:
- If Annual Filing of OPC Company i.e. Forms AOC 4 and Form MGT 7A are not filed within OPC Annual Filing Due Date, a penalty of INR 100 has been set forth for each day the default persists.
- To be in compliance with the Companies Act of 2013 and the Income Tax Act, as well as other relevant laws and regulations, One Person Companies must submit their ROC OPC Annual Filing within the allotted time frame.
Other Event based compliances of OPC:
In addition to the compliances listed above, One Person Companies also have other event-based compliances to follow. Here are some of them:
OPCs must submit Form INC-20A, a declaration for their commencement of business. 180 days after the formation of the OPC, this Form INC-20A must be submitted. The intent of Form INC-20A is to confirm that the OPC has begun conducting business in accordance with the required timeline.
Income Tax Return of OPC:
One Person Companies (OPCs) have until September 30 of each financial year to file their income tax returns via Form ITR-6. The completion of this filing ensures that the reporting requirements and income tax standards are met.
DIR-3 KYC of Directors:
By September 30 of the following financial year, directors of One-Person Companies (OPCs) must comply with the requirement by completing DIR-3 KYC.
Filing of E-Form MSME-I (Half-Yearly Return) for OPC:
OPCs are required to provide E-Form MSME-I, the Half-Yearly Return, with information about any unpaid debts owed to micro and small businesses. The following dates are the filing deadlines for this form:
- The E-Form MSME-I must be submitted by October 31 for the months of April to September.
- The E-Form MSME-I must be submitted by April 30 of the following year for the months of October to March.
E-Form DPT-3 – Return of Deposits:
Regardless of whether the outstanding loans or sums as of March 31 fall under the definition of a deposit, OPCs are obligated to complete E-Form DPT-3, the Return of Deposits, with information about them. E-Form DPT-3 has a June 30 deadline for submission.
MBP-1 – Information on Directors’ Interests in Other Entities:
Every Director of an OPC is required to file Form MBP-1 annually as a part of Annual Compliance for One Person Company. The Director’s interest in any other entity is disclosed on this form.