What are the ROC Return filings for an OPC Company?

A one-member or a single shareholder-administered company is called an OPC (One Person company). These OPCs have fewer regulatory requirements than other business types like Limited Liability Partnerships or Private Limited Companies that must be executed annually to meet all compliances for smooth company operation.

Two types of forms – AOC 4 &  MGT 7A are prominent yearly filings for an OPC that should be submitted to the Registrar of Companies (ROC).

What is Form AOC 4 ?

An AOC 4 form is also known as an Annual Financial Statement of an OPC that includes all the financial information of the OPC company and its business activity for a financial year. This form is submitted to the RoC and contains the income statement, balance sheet, cash flow statement, audit report of the company, and other essential statements.

Important documents for the AOC 4 Form:

• Author Report 
• Balance Sheet 
• Directors report
• Profit and Loss Account 
• Any other relevant documents

Due dates of Form AOC 4

Form AOC 4 needs to be submitted to the Registrar of Companies (ROC) within 180 days from the closing of a financial year. Usually, the due date falls on the 27 th September of a particular financial year.

What is form MGT 7A?

Form MGT 7A is referred to as the annual returns data of OPC and small-scale companies. This form is released by the MCA in coordination with the Companies Amendment Rules, 2021 for filing of annual returns. All OPCs and Small-scale companies are instructed to submit the form MGT 7A every year to the ROC on the fixed due date.

It is mandatory for all OPCs who are registered in India to file the form MGT 7A yearly. Usually, the form contains some essential details of the OPC such as its name, complete registered office address, name of the sole shareholder, profits and losses, information on different shares and directors of the OPC company, etc. Some other crucial information such as changes in directorship, the company’s shareholding structure, and particulars of securities transfers are also included in the form MGT 7A.

Due Date of Form MGT 7A

For an OPC Company, an annual return or MGT 7A form should be filed to the ROC within 60 days of completing the Annual General Meeting (AGM) of the OPCs in a year. For instance, if the AGM of an OPC was organized in September month, then the deadline for submitting the MGT 7A form will be in November month.

Benefits of OPC MCA Compliances

An OPC company receives several advantages from having OPC compliance, including additional opportunities for funding from financial sponsors, limited liability protection, and regular existence.

The following are some of the major benefits of executing annual compliance for an OPC:

Ease of raising funds from financial investors – Proper OPC annual compliances designed for OPCs increase the trust of financial investors and make it comfortable to get funds from them.
Maintains active status – On-time and proper OPC Compliance helps in maintaining the active status of the company.
Accurate data collection: A yearly compliance for an OPC ensures that the data gathered for the OPC annual compliances are genuine, accurate, and true.
Avoids huge penalties: Non-compliance usually turns into huge penalties and fines. A need for relevant annual OPC compliance excellently helps in avoiding such huge penalties.

How to file an ROC return online?

If you are willing to file an ROC return for an OPC online, follow these steps carefully.

•  The first step for filing an ROC return online, you are required to visit the official website of MCA.
•  Download the MGT 7A and AOC 4 forms from the website.
• Fill out the details carefully on the form.
• After filling out the form, search for the option of ‘Upload E-Form’ and click on it.
•  Once the E-form is uploaded, the system will display an option of ‘Pay fee’.
•  Pay the required fee online.
•  

Mandatory Compliance for OPC Annual Filing

Here are the mandatory compliance for OPC annual filing:

• Organizing Annual General Meeting (AGM): All OPCs are required to organize and conduct an Annual General Meeting within 6 months from the closing of the financial year. It is compulsory to conduct an AGM even in case of having only one director in the OPC company meets with OPC annual compliance regulations.
• Filing Financial Statements: OPC companies should draft financial statements such as profit and loss, balance sheets, cash flow statements, etc, and file them with the ROC within 30
  days of the annual general meeting.
• Filing Income Tax Returns: An OPC should file yearly income tax returns by 31 st July of every year.
• Filing Annual Return: Every OPC is required to file an annual return with the MCA within 60 days of the annual general meeting.
•  Statutory Audit: It is compulsory to conduct a statutory audit of an OPC’s financial statements by a professional Chartered Accountant.
• Maintenance of Statutory Registers and Records: OPCs are required to maintain different statutory registers and records, such as the register of directors, minutes of board meetings,
  and register of members.

In case of failing to meet the above-mentioned annual OPC compliances may cause huge fines and penalties and also proceed to the registration cancellation of the OPC. Hence, all OPCs should ensure that they meet all these compulsory compliance for OPC annual filing.

Penalties for late submission of AOC-4 and MGT-7A forms

In case of late submission of the AOC 4 and MGT 7A forms, there is a provision for fines. The fine for late submission of forms or failing to meet the deadline of form submission is Rs. 100/- for each day
by default. Hence, under the Companies Act of 2013, the Income Tax Act, and other relevant laws, it is recommended that each OPC should submit the ROC annual Compliance Forms i.e. AOC 4 and MGT 7A timely to avoid any type of penalties or fines.