One Person Company is defined Under Section 2(62) of Companies Act, 2013. OPC means a company which has only one person as a member. OPC shall have minimum one director. It means, it may have more than one director. It is a kind of private company. OPC can be formed either as Company limited by shares or by guarantee or unlimited company. Natural person who is an Indian citizen can incorporate OPC, be a nominee of an OPC. Minor cannot become member or nominee of an OPC.
OPC Audit is examination books of accounts by Chartered Accountant. Auditor express his opinion about OPC Books of account on accuracy of books of accounts. Its responsibility of OPC Director to get books of accounts audited every year.
Every OPC Company has to appoint an Auditor within 30 days from the date of incorporation. As per section 139(1) OPC has to hold its first Annual General Meeting of Members to appoint Statutory Auditor of OPC who shall hold office from conclusion of first AGM till the conclusion of sixth AGM. Statutory audit is mandatory to be conducted in case of OPC. As per section 173(5) of Companies act, 2013 An OPC needs to conduct one Board Meeting in each half of the calendar year. Section 137(1) of Companies act, 2013 requires OPC to adopt its financial statements in a board meeting and get it signed by its directors. Auditor shall verify books of account and issue Statutory Audit Report which is to be duly signed and stamped. Financial statements are to be filed with the Registrar of companies within or on its due date in e-Form AOC-4. Copy of Financial is to be attached while Filing e-form AOC-4. Cash flow statement is not a mandatory part of financial statements for a One Person Company. Financial Statement includes the following documents.
1. Balance Sheet
2. Profit and loss account
3. Directors Report
4. Auditors Report
5. Notes of Accounts
6. Notice (If Annual General Meeting is conducted)
Annual Return is to be filed every Financial Year within or on its due date in e-form MGT-7.
Penalty for Form AOC-4: A penalty of Rs 100/- per day on delay in filing Form AOC. Apart from that, the penalty of Rs. 1000/- per day of default is charged from the company which can go maximum up to Rs. 100000/-.
Penalty for Form MGT-7: A penalty of Rs 100/- per day is charged by the companies. Each member of the company and who is in default shall be deemed for paying the penalty of Rs. 50000/- and also the late fee of Rs. 100/- per day if the default continues. The Penalty is subject to a maximum of Rs. 500000/-.
One Person Company is required to file their Income tax return in Form ITR-6 for the financial year on or before 30th September for the following financial year. Income tax filing is mandatory even if there is nil return or no transactions done by the company. Every OPC is required to get their books of accounts audited under Income tax act, 1961 if it exceeds the limit as specified under section 44AB of Profits and gains of business and profession. An OPC with addition to above compliance, may also require complying with GST regulations, TDS regulations, Employee state Insurance regulations, Provident fund and others based on requirements. After filing Form ITR-6, Acknowledgement is to be signed by the auditor and e-verify the filed return. Annual filing compliance is to be done after filing Income tax return.
Penalty for non- filing of ITR-6 of OPC Late filing fees will be applicable up to Rs. 10000/- for non-filing of Income tax return.
As per section 134 of companies act, 2013, the financial statement including consolidated financial statement if any, shall be approved by the director or board of directors (if there are more than one director) before they are submitted to the auditor.
Financial statement in case of OPC shall be signed by one director of the company.Financial statement which contains- Notice, Director’s report, Balance sheet, Profit and loss statement, Notes to accounts, shall be stamped and duly signed by the auditor of the company. It should be certified true copy of the financial statement.
Financial statement is open to inspection by any member of the OPC after the audit is conducted and the qualifications, observations or comments on financial statement, which have adverse effect as mentioned in Audit report has been fraud in the general meeting.
Section 145 of companies act, 2013 and Companies (Audit and Auditor’s) Rules, 2014 discuss about the aspects related to the Independent Auditor’s Report. The auditor shall make a report to the members of an OPC on the accounts examined by him and on every financial statement. The auditor’s report shall be issued after taking into account the provisions of Companies act, Income tax act, Accounting and auditing standards.
Finally, the auditor shall make a report to the members of the company which gives a true and fair view of the state of the company’s affairs as per section 128 of companies act, 2013. As per section 145 of companies act, 2013, the auditor’s report shall be signed by the person appointed as an auditor of the company. The qualifications, observations or comments on Financial statement, which have adverse effect as mentioned in Audit report shall be read before the general meeting and open to inspection by any member of company.