The laws in the Company’s Act state that any Individual in India can establish a one-person company. They can act as a shareholder and a director at the same time. Forming a one-person company also offers many benefits in India. As per the company Act of 1956, there were no limitations in establishing a one-person company. But the revised Act of 2013, a new gateway, has been introduced for establishing a one-person company. This gateway offers opportunities to all those who dream big.
Many entrepreneurs have employed this unique approach to business designs. These approaches have offered them an attractive path to success. But do you know what the compliances of forming an OPC are? Or what are the legal steps to take? Know what the compliances of OPC are.
Compliances for establishing an OPC in India
As there are limited compliances for one Person Companies in India, so, there is no requirement to conduct an annual general meeting. Even you don’t have to furnish the statement for cash flow. One person company in India made the Annual compliances that are about the following regulatory bodies.
Annual compliances under diverse legal authorities
It includes all the laws for intellectual properties of a one-person company. Further, it also includes employment laws, labor laws, corporate laws, excise laws, customs laws, and company laws.
Annual return (MGT-7)
It included all the latest details about the directors and stakeholders of the OPC.
Income Tax Return (ITR-IV)
If the annual turnover of the OPC surpasses INR one crore, then the ITR form-IV needs to be furnished by the OPC. However, all of these details are updated by the Income Tax Department.
The Financial statement (AOC-4)
This includes details about all the transactions made in the current year. It helps you keep all the track all the financial records of OPC. The financial statement consists of Profit and loss account of the OPC, balance sheet, auditor’s report of OPC, and the consolidated financial statement.
Event base annual compliances
These are the compliances that relate to external business management and internal administration.
OPC firm compliance
The firm compliances of the OPC should be ensured depending upon the company's Act and the income tax Act. The OPC firm compliances need the register of the company to manage all the details about the annual expenditure of the OPC.
Benefits of filing all the OPC firm compliances online
If you own a one-person company in India, you must ensure all the compliances by filing the online. Here are some benefits of online compliance.
Explore the opportunities
OPC compliances offer you the opportunity to explore the new gateways. So, if you will ensure all the compliances online, you can explore many innovative things. This will allow you to find a better opportunity to take risks.
In a one-person company, an individual can ensure all the compliances. It is because one person is more than enough to manage an OPC. So, it offers you the least requirement.
Good for MSMEs
The OPCs are beneficial to the MSMEs, as you need a few financial assets to establish an OPC.
The OPCs can raise funds for operation in diverse ways. It includes angel investors and supplementary monetary organizations. Thus, OPCs offers you hassle-free finance.
One Person Company enables you to operate your business using novel technology. This has been a wide-used approach in India. so, with the online OPC firm compliances, you can explore more opportunities.