As the name suggests, One Person Company is a type of Private Company which can be formed only by a Natural Person who is resident of India.
One Person will act as the Director as well as shareholder of the Company.
As the concept of OPC is quite famous and prevailing in outside countries also, therefore, India has also provided a path for registration of OPCs considering the ease of doing business.
Benefit of forming One Person Company
It is ideally a great concept to go ahead for the persons who believe in lesser hardships of compliances, lesser intervention of other persons/Directors and running their business solely by forming an entity.
Nominee
Just like while opening a Bank Account you nominate some other person, here also lies the concept of Nominee.
Compliances
As compared to a Private Company, one-person company which is like sub domain of private company having lesser compliances like less Board Meetings, No Annual General Meeting and certain other exemption in compliances.
Compliance checklist for one person company-
| Sl. No. | Particulars | Status |
| 1. | Form INC-20A | Form in respect of commencement of Business within 180 days of incorporation |
| 2. | Stamp duty on Share Certificates | Payment of stamp duty is to be made within 30 days from the issue of share certificates |
| 3. | Board Meeting | Minimum Two Board Meetings
Atleast one Board Meeting in each half of calendar year and gap between two meetings is not less than 90 days |
| 4. | Annual General Meeting | No such requirement to hold AGM as OPC is exempted from holding Annual General Meeting |
| 5. | MBP-1 | Disclosure of interest is required to be given in the first Board Meeting or where ever there is any change by every Director of Company |
| 6. | DIR-8 | Declaration in form DIR-8 that director is not disqualified is required to be given in every financial year |
| 7. | Statutory Registers, Minutes Books and Records | Maintenance of mandatory statutory registers, minutes Book and other secretarial records is required to be done |
| 8. | Form AOC-4 (Financial Statements) | 180 days from end of financial year i.e. 31st March |
| 9. | Form MGT-7 * (Annual Return) | 180 days from end of financial year i.e. 31st March |
| 10. | Income Tax Return of Company | 30th of September of each financial year |
| 11. | DIR- 3 KYC (Directors KYC) | 30th of September of next financial year |
| 12. | ADT-1 (Auditor’s Appointment) | Auditor will be appointed for 5 years |
| 13. | E-Form MSME-I (Half Yearly Return) | Every Company having outstanding payments dues to micro and small enterprises and in case the payment of the same is pending beyond 45 days, then the Company has to furnish details as per the following timeline:
For April to September by 31st October For October to March by 30th April |
| 14. | E-Form DPT-3 (Return of Deposits) | All the Company having any outstanding loan/amount as on 31st March of every financial year has to furnish details and bifurcation of such outstanding amount irrespective of the fact whether such amount is falling under the definition of deposit or not by 30th June |
*In respect of filing of Annual Return of OPC, unlike other companies there is no such requirement of filing Annual Return within sixty days of AGM as the provisions of AGM doesn’t apply to One Person Company.
Disclaimer: The Author does not in any way take responsibility & guarantee towards the 100% accuracy of the information provided in this article. The Author has tried to prepare the article based on the relevant information available & is a mere opinion of author. Other views are most welcome for the suggestions or improvements to be done in the article.
The Author is a Company Secretary in practice & for any query/suggestion can be reached at +91-8826108009 or Email at [email protected]
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