One Person Company Annual Accounts, Return, Tax

1. Compliance Requirements for One Person Limited Company

One Person Limited Company has less number of compliance requirements under various laws as compared to a normal private limited company. The most important compliance requirements are listed as below:

  • Maintain Proper Books of Accounts
  • Get your OPC accounts Audited by Chartered Accountant – Statutory Audit
  • File OPC Income Tax Return – Form ITR 6
  • Get OPC Tax Audit done by Chartered Accountant,  if turnover exceeds 50 lakhs for services and 2 crores for other business
  • Deduct TDS under various categories, if applicable -  Get TAN, Deposit TDS monthly, File Quarterly Returns, Issue TDS Certificates where required
  • Charge Service Tax (if turnover exceeds 9 lakhs annual) – Register, Prepare Deposit tax, File half yearly/annual returns
  • VAT (if applicable and if turnover exceeds 19 lakhs annually)
  • Enroll for GST if applicable
  • File GST Returns after implementation
  • Payroll TDS (if salary more than Rs. 2,50,000/- p.a.)
  • Payroll Form 16 (annual)
  • Payroll Professional Tax (differs for each state) (none for Delhi) -Registration, Deduction, Deposit, Return

2. Annual ROC Compliance for One Person Limited Company 

OPC has to file annual returns with the Registrar of Companies (ROC) listed as below:

  • Form ADT-1 – Appointment of auditor (to be filed within 15 days from the conclusion of the AGM)
  • Form MGT-7 – Statement of Disclosure of Shareholders and Directors (to be filed within 60 days from conclusion of AGM)
  • Form AOC-4 – Annual Accounts of Companies before 30th September every year
    • Profit and Loss Account
    • Balance Sheet
    • Notes to the accounts
    • Statement of changes in equity
    • Audit Report
    • Director’s Report
    • Extract of annual return (MGT-9)

3. One Person Company Taxation

OPC are taxed like Pvt Ltd Companies. For AY 2017-18,tax rate is 30%. If turnover or gross receipt of the company does not exceed Rs. 5 crore, then OPC tax rate is 29% There is a surcharge of 7% or 12% (depending on turnover) on the tax amount. Further,there is an education cess and secondary and higher education cess of 3% on tax and surcharge amount. Provisions of MAT also apply. 

ITR-6 is used to file corporate income tax return for an OPC.

=========================================================================================

This article is brought to you by onlineITreturn.com

For a detailed advice, you can contact info@onlineitreturn.com or visit https://onlineitreturn.com.  OnlineITreturn.com is an online portal for Income Tax and ROC Compliance including Registration and Annual Filings for Limited companies like OPC, Private Limited, LLP.  All taxation and audit matters are handled by Chartered Accountants.

 

LLP Company Formation

1. Obtain DSC for the directors of LLP Company

Digital Signature Certificates should first be obtained for all the designated partners. DSC will be used for obtaining DPIN (Designated Partners Identification Number) and for digitally signing off various forms and documents.  Along with application form, proof of identity and residence is required. Documents should be attested by a gazetted officer, bank official or post master. Self-attested Id of attesting officer with contact details should also be provided. These documents should be posted to the DSC issuing authority. After the application is approved, download certificate. If token based DSC is applied for, then token will be physically received and certificate can be downloaded on the token after approval.

If Aadhaar is available, then verification can be done through eKYC option using OTP. Application is then submitted. Once application is approved, then DSC can be downloaded.

 

2. Obtain DPIN for the directors 

All designated partners need to apply for DPIN using Form DIR-3. Form should be filled up offline. Self-attested documents of the designated partners like Proof of Identity, Proof of residence, PAN, Passport (for foreign national) Photograph etc. should be attached with the form. PAN is mandatory for DPIN application. The Form is digitally signed by the Designated Partner and Chartered Accountant and submitted along-with the required fees. If the form is digitally signed by a CA and the details in the Form are not found to be duplicate, the DPIN is approved and generated immediately. In other cases, a provisional DPIN is generated and DPIN may be received within a day or two. A fee of Rs. 500/- needs to be paid.

 

3. Apply for Name approval

Form 1 needs to be filled up to get the proposed name of the company approved. This form is filled up offline. Give details of the 2 proposed designated partners out of which at least 1 should be resident. Also in case nominee of a body corporate is designated, then give details like CIN/FCRN/LLPIN/FLLPIN etc. Give name of the body corporate and date of resolution authorising the nominee. Give up to 6 desired names of the proposed LLP. The key points in the form should be vetted by the Applicant Designated Partner example Trademark etc. The form should be digitally signed by the applicant designated partner for LLP. The approved name will be reserved for 60 days. A fee of Rs. 200/- needs to be paid.

 

4. Apply for LLP incorporation

After name approval, the application for LLP company incorporation can be filed using Form 2. A fee of Rs. 500/- needs to be paid.The Form can be filled up offline. Documents to be attached with the Form include copy of resolution to become partner if partner is a body corporate, copy of resolution mentioning name and address of nominee/designated partner, Proof of address of registered office of LLP, Subscribers’ sheet including consent, In principle approval of regulatory authority, if required, Details of LLP(s) and/ or company(s) in which partner/ designated partner is a director/ partner. The Form 2 will be digitally signed by person who subscribed his name to the incorporation document (Designated Partner) and by an Advocate/ Company Secretary/ Chartered Accountant/ Cost Accountant in practice. Ensure that details of at least one designated partner as provided at the time of name availability (Form 1) should also be provided at the time of incorporation of LLP (Form 2). Once the form is submitted, Gov.t fees and stamp duty are paid. Registration documents are scrutinized and maximum within 14 days of filing of Form-2, the Registrar will issue a certificate of incorporation in Form-16.

Form 3 for LLP agreement and Form 4 for Partner’s details may be filed with the prescribed fee simultaneously at the time of filing Form-2 or within 30 days of the date of incorporation or within 30 days of such subsequent changes.

 

=========================================================================================

This article is brought to you by onlineITreturn.com

For a detailed advice, you can contact info@onlineitreturn.com or visit https://onlineitreturn.com.  OnlineITreturn.com is an online portal for Income Tax and ROC Compliance including Registration and Annual Filings for Limited companies like OPC, Private Limited, LLP.  All taxation and audit matters are handled by Chartered Accountants.