OPC Compliance Requirements

Last Updated at: October 12, 2020
4994
opc compliance
As per the latest circular by the MCA, new OPCs can do their GST, EPFO, ESIC, and Professional Tax registration on the MCA portal, while incorporating the company itself. However, the OPCs will need to comply with the stated provisions of GST Act, ESI Act and MP Act.

 

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 is into existence to help all those enterprises with a turnover of less than Rs. 2 crore. There are certain OPC 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 stationery:

Name Board: All companies, including an OPC, are necessary to place the name of the company outside their place/location of work.

Company Rubber Stamp: The rubber stamp is necessary for the execution of various legal documents related to banking functions and board resolutions. A round 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 and 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 for your free business advice

OPC PAN Application

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. Registration of the PAN will be within 21 days, starting from the date of receipt of the application for the same.

Opening of Bank Account

The process is fairly simple in the case of an OPC. Since it is recognise by the Companies Act and is a corporate entity, no additional tax forms and registrations are necessary. According to the Reserve Bank of India’s KYC regulations, the following documents are required for opening an OPC bank account:

1. Self attested copies of the OPC incorporation certificates
2. Memorandum of association of OPC
3. Articles of association of One Person company
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 the 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, a One Person Company 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. This signed resolution by the sole director is the general meeting of the firm. Provisions related to the quorum for meetings of Board do not apply to a One Person Company.

Financial Documents Required

All companies, including OPCs, are necessary to submit the following documents with the registrar of companies (ROC):
1. Balance sheet at the end of the financial year;
2. OPC Account 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 a One Person Company, the need for a cash flow statement is not mandatory.

To know more about One Person Company:  Click here

You should also read:
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OPC Compliance Requirements

4994
As per the latest circular by the MCA, new OPCs can do their GST, EPFO, ESIC, and Professional Tax registration on the MCA portal, while incorporating the company itself. However, the OPCs will need to comply with the stated provisions of GST Act, ESI Act and MP Act.

 

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 is into existence to help all those enterprises with a turnover of less than Rs. 2 crore. There are certain OPC 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 stationery:

Name Board: All companies, including an OPC, are necessary to place the name of the company outside their place/location of work.

Company Rubber Stamp: The rubber stamp is necessary for the execution of various legal documents related to banking functions and board resolutions. A round 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 and 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 for your free business advice

OPC PAN Application

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. Registration of the PAN will be within 21 days, starting from the date of receipt of the application for the same.

Opening of Bank Account

The process is fairly simple in the case of an OPC. Since it is recognise by the Companies Act and is a corporate entity, no additional tax forms and registrations are necessary. According to the Reserve Bank of India’s KYC regulations, the following documents are required for opening an OPC bank account:

1. Self attested copies of the OPC incorporation certificates
2. Memorandum of association of OPC
3. Articles of association of One Person company
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 the 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, a One Person Company 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. This signed resolution by the sole director is the general meeting of the firm. Provisions related to the quorum for meetings of Board do not apply to a One Person Company.

Financial Documents Required

All companies, including OPCs, are necessary to submit the following documents with the registrar of companies (ROC):
1. Balance sheet at the end of the financial year;
2. OPC Account 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 a One Person Company, the need for a cash flow statement is not mandatory.

To know more about One Person Company:  Click here

You should also read:
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A lawyer with 14 years' experience, Vikram has worked with several well-known corporate law firms before joining Vakilsearch.