Vakilsearch's OPC Registration Process

Vakilsearch offers a hassle-free process of registering a One Person Company (OPC) in India.

Step 1: Consultation - Pre-monsoon consultation to comprehend the business needs, government charges and eligibility criteria of OPC registration.

Step 2: Documentation - Help in collating and preparing all documents required, such as identity proof, Aadhaar Card, address proof, No Objection Certificate and registered office proof such as utility bill.

Step 3: DIN and DSC Application - Submission of Director Identification Number (DIN) and Digital Signature Certificate (DSC) for the sole director.

Step 4: Name Approval - We will assist you in registering an exclusive name for your company. We will search for the availability of the name and apply for a proposed company name for name reservation under the Ministry of Corporate Affairs (MCA) portal.

Step 5: MOA and AOA Drafting - Preparing the Memorandum of Association (MOA) and Articles of Association (AOA) according to legal requirements.

Step 6: Filing Forms - Submission of the necessary forms (INC-32, INC-33, and INC-34) to the Registrar of Companies (ROC).

Step 7: Incorporation Certificate - Obtaining the Certificate of Incorporation from the ROC, marking OPC company incorporation.

Step 8: PAN and TAN Application - Help in obtaining the company's PAN and TAN.

Step 9: Post-Incorporation Support - Direction on post-incorporation compliance, trademark registration, professional tax, income tax returns, appointment of Company Secretary and other legal formalities.

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One Person Company (OPC) Compliance

One Person Company (OPC) has to follow annual filing requirements. Below mentioned is the list of One Person Company compliance:

Government Laws Impacting OPCs

OPCs need to comply with some government laws to keep their legal status and run seamlessly. Such laws are annual filings, tax requirements, and compliance with corporate governance standards as prescribed in the Companies Act of 2013.

Significance of One Person Company Annual Compliances

Legal Status: Compliance keeps the legal status of the OPC intact and prevents penalties.
Business Credibility: Regular compliance enhances the company's credibility with stakeholders, including customers, investors, and financial institutions.
Operational Efficiency: Staying compliant helps in smooth business operations and avoids disruptions due to legal issues.

Benefits of One-Person Company Compliances

Avoid Penalties: Timely compliance prevents fines and penalties imposed by regulatory authorities.
Enhanced Reputation: A compliant company is perceived as reliable and trustworthy by clients and partners.
Access to Finance: Compliance raises the prospect of obtaining loans and investments from investors and financial institutions.

One-Person Company Mandatory Annual Compliances

Annual Return (Form MGT-7): Submission within 60 days from the Annual General Meeting (AGM) date.
Financial Statements (Form AOC-4): Submission within 180 days of closure of the financial year.
Income Tax Return: Filing on 30 September of the assessment year.
Statutory Audit: Audit of financial statements by a Chartered Accountant.
Board Meetings: At least one board meeting within six months.

Legal Consequences of Non-Compliance

Fines and Penalties: Non-compliance leads to heavy fines and penalties levied by the MCA and other regulatory bodies.
Legal Measures: Repeated non-compliance can result in legal measures, including the dissolution of the company.
Director Disqualification: Directors of the company could be disqualified from occupying directorships in other companies.

Documents Required for One Person Company's Annual Compliance

Financial Statements: Balance sheet, profit and loss account, and cash flow statement.
Audit Report: Submitted by the statutory auditor.
Board Meeting Minutes: Minutes of board meetings conducted throughout the year.
Annual Return: MGT-7 form, representing the annual performance of the company.
Income Tax Return Acknowledgment: Documentation of submission of the income tax return.

OPC Compliance Due Dates

Particular	Compliance Requirement	Form	Due Date
Annual Return (Form MGT-7): Within 60 days from the date of the AGM.	Annual Return	Form MGT-7	Within 60 days from the date of the AGM
Financial Statements (Form AOC-4): Within 180 days from the end of the financial year.	Financial Statements	Form AOC-4	Within 180 days from the end of the financial year
Income Tax Return: By 30th September of the assessment year.	Income Tax Return		By 30th September of the assessment year

Particular

Compliance Requirement

Form

Due Date

Annual Return (Form MGT-7): Within 60 days from the date of the AGM.

Annual Return

Form MGT-7

Within 60 days from the date of the AGM

Financial Statements (Form AOC-4): Within 180 days from the end of the financial year.

Financial Statements

Form AOC-4

Within 180 days from the end of the financial year

Income Tax Return: By 30th September of the assessment year.

Income Tax Return

By 30th September of the assessment year

Taxability of OPCs in India

Corporate Tax: OPCs need to pay corporate tax on their earnings. The rate of tax for OPCs is consistent with the rates for other private limited companies.

Tax Deductions: OPCs can claim a number of deductions under the Income Tax Act, including depreciation of assets, business expenses, and certain allowances.

Dividend Distribution Tax (DDT): OPCs need to pay DDT on any dividend paid to shareholders.

Goods and Services Tax (GST): In case of annual turnover above ₹20 lakhs, OPCs shall get registered under GST and file GST returns.

Specific Tax Provisions Applicable to OPCs

Income Tax Rates: OPCs are charged a flat rate of 22% plus applicable surcharge and cess for domestic companies claiming no exemption or incentive. For companies claiming exemption, the rate shall be 30%.

MAT (Minimum Alternate Tax): OPCs fall under MAT, which is charged at 15% of book profits (under the Income Tax Act), along with surcharge and cess.

Tax Audit: OPCs are required to undergo tax audit if their turnover is more than ₹1 crore (in case of businesses) or ₹50 lakhs (in case of professionals).