kanakkupillai

Annual Compliance for One Person Company (OPC) in Kolkata

Renuka M's photo
Renuka M
·

3 min read

A One Person Company (OPC) is a unique business structure that allows a single entrepreneur to operate a company with limited liability. While an OPC enjoys various benefits, it must adhere to annual compliance requirements to ensure legal standing and avoid penalties. In Kolkata, as in other parts of India, OPCs must fulfil specific regulatory obligations under the Companies Act 2013 and other applicable laws.

Key Annual Compliance Requirements for OPC in Kolkata

1. Appointment of Auditor

Every OPC must appoint a Chartered Accountant (CA) as an auditor within 30 days of incorporation. The auditor will examine the company’s financial records and provide an audit report.

2. Filing of Financial Statements (AOC-4)

  • OPCs are required to file their financial statements with the Registrar of Companies (ROC) using Form AOC-4.

  • This must be done within 180 days from the end of the financial year.

  • The financial statements must include the balance sheet, profit and loss statement, and the audit report.

3. Filing of Annual Return (MGT-7A)

  • OPCs must file an annual return using Form MGT-7A within 60 days of the Annual General Meeting (AGM) or by September 30 of the following financial year.

  • This return includes details of shareholding, director details, and other key company information.

4. Income Tax Return Filing (ITR-6)

  • OPCs must file an annual income tax return using Form ITR-6 before September 30 of the assessment year.

  • If the company has taxable income exceeding specified limits, it must undergo a tax audit.

5. Director’s Report

  • A Director’s Report must be prepared, covering financial performance, plans, and compliance adherence.

  • This report is part of the financial statements submitted to the ROC.

6. Holding of Board Meetings

  • Unlike Private Limited Companies, OPCs with only one director are not required to hold multiple board meetings.

  • However, if there are more directors, at least one board meeting must be held every six months.

7. Compliance with GST Regulations

  • If the OPC is registered under GST, it must file monthly, quarterly, or annual GST returns, depending on the turnover.

  • Failure to file GST returns can result in penalties and suspension of GST registration.

8. Compliance with MCA Guidelines

  • The Ministry of Corporate Affairs (MCA) mandates OPCs to comply with all notifications and guidelines issued periodically.

  • Any change in company structure, such as a change in director or registered office, must be reported to the ROC.

Penalties for Non-Compliance

Failure to comply with annual compliance requirements can lead to penalties, including:

  • Late fees for delayed filings.

  • Monetary fines imposed by the MCA.

  • Possible disqualification of the director in case of prolonged non-compliance.

Conclusion

Annual compliance is crucial for the smooth functioning of an OPC in Kolkata. It ensures transparency, credibility, and long-term operational stability. Entrepreneurs running OPCs should seek professional assistance from chartered accountants or company secretaries to manage compliance efficiently and avoid penalties.

Annual Compliance For Opc in Kolkata