What Are the Compliance Required for OPC Private Limited Company

What Are the Compliance Required for OPC Private Limited Company


Unlike sole proprietorship, One Person Company enjoys a number of advantages. It is a business entity which allows entrepreneurs to protect their personal assets from the debts of the company. It also enables them to raise funds in the form of equity. However, like any other firm, it must follow all the requisite compliances. The annual and event-based filings must be done timely. This article explains the mandatory compliances required for OPC private limited companies.

The One Person Company (OPC) was introduced by the Companies Act 2013. Earlier, a minimum of two directors and shareholders were required to form a company. OPCs have a maximum of fifteen directors and they can also be increased through a resolution.

It is compulsory to appoint a nominee at the time of OPC registration. This is to retain the feature of continuous succession in case of death or incapacity. There is no minimum authorised capital for an OPC. Moreover, it is easy to sell an OPC as there are no restrictions on transfer.

Despite these benefits, OPCs must file various returns with the ROC annually. These include Income tax returns, financial statements and forms for KYC of directors. These filings help them stay compliant with the law and avoid hefty penalties. Moreover, they can avail of various government subsidies and exemptions in accordance with the guidelines laid down by the Government of India. Besides, it helps them maintain their credibility in the market and attract investors.

 

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