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Annual Compliance of one person company

All about Annual Compliance of One person Company
 
The term Compliance refers to act of adherence to the law of the land. In business termsit is done in adherence to the laws, regulations, guidelines and specification that are relevant for the life cycle of a business entity. A One Person Company alone Entrepreneur to operate a corporate entity with limited liability protection; an OPC does have a few limitations. For instance, every One Person Company (OPC) must nominate a nominee Director in the MOA and AOA of the company - who will become the owner of the OPC. Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. A person can be member in only one OPC.
For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.

Auditor’s Appointment
 
Within 30 days of incorporation of the company, it needs to appoint an auditor (a chartered accountant) for auditing the financial documents and statements of the OPC

Meetings of Board
 
Atleast 1 meeting of the board of directors to be conducted in each half of a calendar year.
 
Holding of Annual General Meeting 
 
Every company shall call and hold Annual General Meeting within 6 month from the end of financial year and in case of first AGM it can be held within 9 month from the end of financial year. 

FAQs on Annual Compliances of One Person Company

Yes it is mandatory for every one person company to file annual return with mandatory annual forms to ROC every year.

If any company fails to file annual compliance on time it will lead to additional fees on Rs. 100 per day for each form. Continuous default in annual compliances may also lead to Director Disqualification, Fine & Imprisonment and Strike Off of Company.

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