OPC Compliance Requirements By Vikram Shah - November 25, 2017 Last Updated at: Oct 15, 2020 0 5493 The Companies Amendment Bill, 2020 has proposed certain amendments to various provisions of the Companies Act. In one such proposal, the applicability of section 446B (relating to ‘Lesser penalties for small companies & OPCs) is sought to be extended to all provisions of the Act. As per a recent MCA notification, the registration of new OPCs (One Person Companies) under EPFO, GST, ESIC and Professional Tax can now be done on the MCA portal, at the time of incorporating the company itself. However, the companies will need to comply with the provisions of ESI Act, GST Act and MP Act. The relaxations under the Ministry of Corporate Affairs’ notifications has reduced certain compliance burdens and paperwork for small companies and startups. The One Person Company was introduced in the Companies Act to make sure a sole entrepreneur could start and manage a legal entity with limited liability. It was brought into existence to help all those enterprises with a turnover less than 200 lakh rupees. There are certain compliance requirements for an OPC which we will look at here. CORPORATE STATIONERY After the registration, it is advisable for one to purchase the following stationary: Name Board: All companies, including an OPC, are required to place the name of the company outside their place/location of work. Company Rubber Stamp: The rubber stamp is required for the execution of various legal documents related to banking functions, board resolutions, etc. A round shaped rubber stamp and a straight rubber stamp bearing the name of the company and its director can be purchased. Letterhead: The name of the company, address, must be printed on all documents that go out from the OPC including invoices, notices, circulars, and all other official documents of the OPC. Ask Free Legal advice OPC PAN APLICATION: The first step to be followed after the OPC gets incorporated is to get the PAN number registered for the firm. The letter is to be duly signed by the director of the firm and submitted at the NSDL office. Along with the PAN application, submit a self attested copy of the incorporation certificate as well. The PAN will be registered in 15 days, starting from the date of receipt of the application for the same. OPENING OPC BANK ACCOUNT The process is fairly simple in case of an OPC. Since its recognized by the Companies Act and is a corporate entity, no additional tax forms and registrations are required. According to the Reserve Bank of India’s KYC regulations, the following documents are required for opening a bank account: 1. Self attested copies of the OPC incorporation certificates 2. Memorandum of association of OPC 3. Articles of association of OPC 4. A resolution to open a bank account in the name of the OPC 5. A copy of the PAN allotment letter 6. ID proof of the director 7. Telephone bill It is imperative to note that all documents mentioned above are to be self attested with the OPC seal and the director’s signature. AUDITOR’S APPOINTMENT Within 30 days of incorporation of the company, it needs to appoint an auditor, a chartered accountant, for auditing the financial documents and statements of the OPC ANNUAL MEETING Unlike all other companies, an OPC need not have a general meeting annually. Since the board of directors has just one person, a resolution passed by that one director is acceptable and can be entered into the minutes-book. This signed resolution by the sole director is considered the general meeting of the firm. Provisions related to the quorum for meetings of Board do not apply to an OPC. FINANCIAL DOCUMENTS REQUIRED All companies, including OPCs, are required to submit the following documents with the registrar of companies (ROC): 1. Balance sheet at the end of the financial year 2. Accounts of profits and losses 3. Cash flow statement of the financial year 4. Records of any change in equity 5. Any document that needs an explanatory note In case of a small company, dormant company or an OPC, the need for a cash flow statement is not mandatory.