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.
1. Filing of the Annual Return: - It contains the Statement of Disclosure of Shareholders and Directors
2. 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.
3. 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.