Annual Compliance for OPC (One Person Company) Registration in Delhi

Starting an OPC (One-person company) is a significant step for entrepreneurs looking to establish a business with limited liability. OPC Registration in Delhi allows individuals to operate a company with a single shareholder, which is advantageous for sole proprietors looking to expand their business while limiting their liability. However, just like any other type of company, an OPC must comply with various annual filing and compliance requirements under the Companies Act 2013. Let’s examine the necessary yearly compliance obligations for OPCs in Delhi.

1. Filing of Financial Statements

Every OPC must prepare its financial statements at the end of the financial year (March 31). These statements include the balance sheet, profit and loss account, and cash flow statement. The company's director should sign them, and they should be filed with the Registrar of Companies (RoC) via Form AOC-4 within 30 days of the Annual General Meeting (AGM).

2. Annual Return Filing

Along with the financial statements, OPCs in Delhi are also required to file an annual return with the RoC. This is done using Form MGT-7, which provides details of the company’s shareholding, directors, and other key information. The annual return must be filed within 60 days from the date of the AGM.

3. Holding of Annual General Meeting (AGM)

Although OPCs are not required to hold AGMs as per the Companies Act 2013, the company must pass the necessary resolutions to approve its financial statements and appoint directors. The resolutions must be documented and filed with the RoC within the prescribed time.

4. Director's Report

As part of the annual compliance process, OPCs in Delhi must prepare and file a Director's Report, which includes the financial performance of the company, risk management policies, details of corporate governance practices, and other essential disclosures. The director signs this report and forms a part of the financial statements.

5. Tax Filing and Compliance

Apart from the company’s statutory filings, OPCs in Delhi also need to comply with tax regulations. OPCs are required to file income tax returns (ITR) with the Income Tax Department. The filing of income tax returns is mandatory even if there is no taxable income. The returns must be filed by the due date, which is usually by September 30 of the assessment year.

6. Maintenance of Statutory Registers

OPCs in Delhi must maintain statutory registers like the register of members, directors, and charges. These registers need to be updated regularly, and any changes in the shareholding or directorship should be documented and filed with the RoC.

7. Payment of Annual Fees

In addition to filing the necessary forms and documents, OPCs must also pay the annual fees to the Registrar of Companies. The fees are based on the authorised share capital of the company and need to be paid in a timely manner to avoid penalties.

8. Compliance with Other Legal Requirements

Depending on the business activities of the OPC, there may be other compliance requirements to follow, such as FSSAI registration (if involved in food businesses), GST registration (for taxable goods/services), or labour law compliance (if employing staff). OPCs must ensure they meet all regulatory requirements applicable to their business sector.

Why is Annual Compliance Important for OPCs in Delhi?

Failing to meet annual compliance requirements can result in penalties, fines, or even the suspension of your company’s registration. It can also impact the company’s credibility and future business prospects. Ensuring the timely filing of documents and paying the prescribed fees helps maintain the good standing of the OPC.

Conclusion

Annual compliance for OPC registration in Delhi is crucial to ensure that the company stays legally compliant and avoids any unwanted penalties. Entrepreneurs must be diligent in fulfilling the filing requirements related to financial statements, annual returns, AGM, and taxes. Engaging with professionals who specialise in OPC compliance can help streamline the process and ensure that all obligations are met in a timely and accurate manner.