As per Company Law, every One-Person Company needs to file annual Compliance. The return needs to be signed by the Company Secretary. In absence of a Company Secretary, the director of the company can sign the return. A one-person company (OPC) is exempt from holding the annual general meeting (AGM) and making a rotation of the auditors. OPC (One Person Company) Annual Compliance consists of below activities.
- Filing of the Annual Return: - It contains the Statement of Disclosure of Shareholders and Directors
- Filing the Financial Statements: - It contains all the monetary and finance related audited accounts of the OPC. Financial statements filing has to be filed with the concerned ROC, on or before 30th October every year.
- Filing Income Tax Returns: - Income tax return filing for OPC has to be completed on or before 30th September every year. If in case annual turnover of the OPC exceeds Rs. 1 Crore, then tax audit is mandatory.
Decision: Is Annual compliance must for a One-Person company or good to have activity?
It is mandatory for all One-Person companies (OPC’s) to file annual compliance and other tax-related returns. Failing which will lead to heavy penalties or your One-person company in defaulter list of ROC. Next step is to understand the benefits and various implications.