Updated : August 31, 2024Annual returns of OPC
Overview :A one-person company offers company benefits with fewer compliance obligations than other business structures like Private Limited Companies or Limited Liability Protection. Gain a comprehensive understanding of Annual ROC filings for One Person Company including due dates for OPC’s Annual ROC filings and penalties for late submission under AOC-4 and MGT-7A.
A corporation is referred to as a One Person company if it only has one member or shareholder. OPCs (One Person Companies) have fewer regulatory obligations than other business structures like Private Limited Companies or even Limited Liability Partnerships. To be prepared for all compliances to be met well in advance, it is imperative to stay updated with their prescribed due dates.
We will learn more about RoC filings of a one-person company in this blog. Every business is required to submit its annual financial statement and annual returns within the prescribed due date for the filing, under the Company Incorporation Rules, 2014.
What are the annual RoC filings for a One Person Company?
An OPC has fewer requirements for ROC Annual Filings than a Private Limited Company or a Public Limited Company, lowering the overall cost of compliances.
Two forms, MGT 7A and AOC 4, are the most significant annual filings of an OPC to the RoC.
What is form MGT 7A?
For filing of annual returns of OPC and small companies, MCA released Form MGT 7A on March 5, 2021, in pursuance with the Companies (Management and Administration) Amendment Rules, 2021. Before this, even OPCs filed their annual returns in form MGT 7, like all other companies. OPC and Small companies are required to submit form MGT 7A annually to the ROC on the prescribed due date.
Annual Returns of OPC in form MGT 7A
You must submit form number MGT 7A to file the annual returns of the OPC. Every year, MGT 7A must be filed by every OPC registered in India. The annual returns contain the basic details of an OPC (its name, the address of its registered office, its sole shareholder’s name, information regarding shares, debentures & debts, information about directors of OPC, etc). The shareholding structure of the company, changes in directorship, and specifics of securities transfers would also be disclosed in the annual report.
What is the Due Date for Filing MGT 7A?
For a One Person Company, the deadline for submitting Form MGT 7A to the ROC is 60 days after the date on which the annual general meeting of the OPC was held for that year . For instance, the deadline for submitting Form MGT 7A for OPC, say, for FY 2021–22 is November 28, 2021, if the annual general meeting for the year was conducted on September 30, 2021.
Annual Financial Statement of OPC in Form AOC 4
All the financial information related to business activity of the One Person Company for the entire financial year is filled out and submitted to the RoC in e-Form AOC 4. Balance sheet, Income Statement, Audit Report, and a Cash Flow statement are all included in what is essentially the OPC’s annual financial report filed in AOC 4.
What are the Due Dates for filing Form AOC 4?
OPC Form AOC 4 must be submitted to the ROC before 180 days from the end of a particular financial year. For instance, the due date for submitting e-form AOC 4 for a One Person Company, say for the fiscal year 2023-2024 will be September 27, 2024.
What are the due dates for OPC IT Returns for FY 2021–22?
Filing Income Tax Returns is also an annual compliance for a One Person Company, like all annual compliances. The only difference is that the ITR is not filed to the RoC, but is instead filed to the Income tax department.
The Income Tax returns of a particular financial year are filed by September 30 of the next financial year. For instance, an OPC must submit its ITR by September 30, 2022, for the financial year 2021–2022. It’s important to note that a tax audit before filing ITR is necessary in case the annual turnover of the OPC exceeds INR 1 crore.
Penalties for late submission under AOC-4 and MGT-7A
The fine for failing to submit ROC Forms AOC 4 and MGT 7A by the deadline has been raised to INR 100/- for each day of default. It is therefore recommended that in accordance with the Companies Act of 2013, the Income Tax Act, and other relevant laws, OPC must submit the ROC annual Compliance Forms on time to avoid any penalties.
OPC Event-based Compliances
Unlike annual compliances, event-based compliances are ones which a One Person Company must fulfill in addition to the annual compliances listed above. Some of the event-based compliances have been listed below.
- An OPC’s annual compliances are primarily focused on two areas: internal administration and external business management.
- In addition, an OPC must adhere to the certain statutory compliances as well. These include obtaining GST Registration, filing GST returns, obtaining PF and ESI registration, etc.
Conclusion
OPC is one of the most attractive business structures in India for solopreneurs in which fewer compliance requirements need to be fulfilled with similar company benefits. The aforementioned essential annual filings for OPCs with other associated factors such as required forms, and due dates will aid in understanding essential compliances for OPCs clearly, thereby, staying compliant.
