Annual Compliance for One Person Company (OPC) in Coimbatore

A One Person Company (OPC) is a popular business structure for solo entrepreneurs in Coimbatore. While it provides limited liability and benefits similar to a private limited company, OPCs must fulfill specific annual compliance requirements as per the Companies Act, 2013.

Key Annual Compliance Requirements for OPC

1. Annual Return (MGT-7A)
2. OPCs must file Form MGT-7A with the Registrar of Companies (ROC) within 60 days of the Annual General Meeting (AGM). This form contains details of the company’s structure, financials, and changes during the financial year.
3. Financial Statements (AOC-4)
4. Financial statements, including the balance sheet and profit and loss statement, must be filed using Form AOC-4 within 180 days of the end of the financial year.
5. Income Tax Return (ITR-6)
6. OPCs must file their income tax return (ITR-6) by October 31st of the assessment year to ensure they meet tax compliance requirements.
7. Statutory Audit
8. An OPC must have its financial statements audited by a certified Chartered Accountant (CA) annually, regardless of its turnover.
9. Director’s Report
10. The sole director of the OPC must prepare a report outlining the company’s financial health, performance, and compliance with regulations.

Consequences of Non-Compliance

Failure to meet annual compliance requirements can result in penalties, fines, and even legal action against the company and its director. Additionally, continuous non-compliance may lead to the company being marked as inactive or struck off by the ROC.

Why Is Compliance Important?

• Avoids penalties and legal issues.
• Ensures business credibility and smooth operations.
• Facilitates easier loan approvals and funding opportunities.
• Helps maintain proper financial records and governance.

Conclusion

Annual compliance is a crucial aspect of running an OPC in Coimbatore. Entrepreneurs should ensure timely filings and audits to maintain a good standing with regulatory authorities. Seeking professional help from legal and financial experts can simplify compliance and help focus on business growth.