Annual Compliances of OPC

INC 20A

INC-20A is a form prescribed under the Companies Act, 2013 in India. INC-20A form is used to declare that the company has commenced its business operations. It ensures that the company has met the statutory requirement of receiving the minimum subscription amount from shareholders before starting business activities. Please note it is filed once in the lifetime of the company.

Timeline:

Companies are required to file INC-20A within 180 days from the date of Incorporation.

Fees structure:

Fees will be payable according to the capital of registered company.

Late fees and Penalties:

Failure to file INC-20A within the stipulated time can lead to penalties on both the company and directors.

Late fee depends upon the number of days delayed in filing of INC-20A after stipulated Time period of 180 days’ has been lapsed.

If INC-20A is not filed within the stipulated 180 days’ time and the additional 180 days extended time, a penalty of ₹50,000 will be imposed on the company and ₹1,000 per day on the director (maximum limit ₹1,00,000). The company name can also be struck off by the MCA if this compliance is not followed.

DIN KYC

DIN-KYC (Director Identification Number – Know Your Customer) is a regulatory process mandated by the Ministry of Corporate Affairs (MCA) in India after the end of every financial year (31st March). Its primary purpose is to ensure transparency and accountability in corporate governance. This process involves verifying the identity and address details of directors.

Applicability:

The DIN-KYC process is applicable to all individuals who have been allotted a Director Identification Number (DIN) by the MCA.

Purpose:

• Transparency and Accountability: DIN-KYC promotes transparency within the company by ensuring that the identities of the directors are accurately documented and verified. This enhances the credibility of the company and instills confidence among stakeholders, including investors, creditors, and business partners.
• Prevention of Fraud: By conducting DIN-KYC, the authorities can verify the authenticity of directors, thus reducing the risk of fraudulent activities within the company. Verifying the identities and backgrounds of directors helps in maintaining the integrity of the company structure.
• Regulatory Compliance: The DIN-KYC process ensures compliance with regulatory requirements mandated by the Ministry of Corporate Affairs (MCA) in India. It helps verify the identities of designated partners and ensures that only eligible individuals hold such positions.

Timeline:

DIN-KYC must be completed after 31st March and before 30th September every year.

Fees:

There is no government fee applicable for DIN-KYC if filed on time.

Late Fees:

If the form is not filed before 30th September, the DIN will be deactivated by the MCA and a late fee of ₹5,000 will be charged to the director.

ADT-1

ADT-1 is a form prescribed by the Ministry of Corporate Affairs in India. It is used to inform the Registrar of Companies (ROC) about the appointment of an auditor for a company.

Who can be an auditor of a company?

A qualified Chartered Accountant or a firm of Chartered Accountants can be appointed as the auditor of a company.

Qualifications of an Auditor:

• An auditor must be a qualified Chartered Accountant or a member of a recognized accountancy body.
• They must have experience in auditing financial statements, assessing internal controls, and sound knowledge of accounting principles.
• They must be registered with the appropriate regulatory body, such as the Institute of Chartered Accountants of India (ICAI) for Indian companies.

Applicability:

ADT-1 is applicable to all companies registered under the Companies Act, 2013 in India.

Timeline:

Form ADT-1 must be filed before 27th September of every Assessment Year.

Fees (Based on Authorized Share Capital):

Late Fees (Based on Delay Duration):

AOC-4

AOC-4 is a prescribed form by the Ministry of Corporate Affairs (MCA) in India. It is used to file financial statements such as the Balance Sheet, Profit & Loss Account, and Cash Flow Statement annually with the Registrar of Companies (ROC).

Applicability:

AOC-4 is applicable to all types of companies registered under the Companies Act, 2013, including Private Limited Companies, Public Limited Companies, and One Person Companies (OPCs).

Timeline:

Form AOC-4 must be filed before 27th September of every Assessment Year.

Fees (Based on Authorized Share Capital):

Late Fees:

A late fee of ₹100 per day is charged for any delay in filing the AOC-4 form beyond the due date.

MGT-7 / 7A

MGT-7 is a prescribed document by the Ministry of Corporate Affairs in India, also known as the Annual Return. It is used by companies to provide detailed information about their share capital, financial position, indebtedness, governance structure, and other relevant disclosures to the Registrar of Companies (ROC) annually.

Applicability:

Form MGT-7 is applicable to all companies registered under the Companies Act, 2013, including private limited, public limited, and one-person companies (OPCs).

Form MGT-7A is applicable specifically to One Person Companies (OPCs) and small companies having:

• Paid-up share capital not exceeding ₹2 crore (or up to ₹10 crore, as notified).
• Turnover not exceeding ₹10 crore (or up to ₹100 crore, as notified).

Timeline:

MGT-7/7A must be filed on or before 27th September of every Assessment Year.

Fees (Based on Authorized Share Capital):

Late Fees:

Late filing of MGT-7 or MGT-7A attracts a penalty of ₹100 per day until the return is filed.

DPT-3

DPT-3 is a form prescribed by the Ministry of Corporate Affairs (MCA) in India. It is used for filing returns of deposits and providing details of outstanding loans or transactions that are not considered deposits by companies with the Registrar of Companies (ROC).

Applicability:

The DPT-3 form is applicable to all types of registered companies under the Companies Act, 2013.

Timeline:

Form DPT-3 must be filed before 30th June of every Assessment Year.

Fees (Based on Authorized Share Capital):

Late Fees:

Income Tax Compliance

Income tax is a direct tax levied on the income earned by individuals, businesses, and other entities within a specific jurisdiction, typically by the government. It is one of the primary sources of revenue for the government and is used to fund various public expenditures, including infrastructure development, social welfare programs, defense, and other essential services.

There are seven types of ITR but for OPC only two ITRs are applicable. i.e ITR 6 and 7.

ITR 6

ITR-6 is an income tax return form prescribed by the Income Tax Department of India for companies other than those who are claiming exemptions under section 11 of Income Tax Act, 1961.

Who should file ITR-6?

1. Domestic companies
   All domestic companies incorporated under the companies act, 2013 whose income are not exempted under section 11 of the Act are need to file ITR-6.
   Domestic companies include:
   • Private Limited Companies
   • Public Limited Companies
   • One Person Companies (OPCs)
   • Section 8 Companies (Non-Profit Companies)
2. Foreign companies
   Foreign companies operating in India through a branch or office whose income is not exempt under Section 11 are also required to file their income tax returns using ITR-6.
3. Other Corporate Entities
   Other corporate entities, such as cooperative societies, local authorities, and other corporate bodies, whose income is taxable and not exempt under Section 11, should also file their income tax returns using ITR-6.

Due dates:
The due dates for filing ITR-6 can vary depending on the entity’s circumstances and any extensions provided by the Income Tax Department. Generally, for entities requiring audit, the due date is usually September 31st of the assessment year. For those not requiring audit, the due date is typically July 31st of the assessment year. However, it’s important to check for any extensions or changes in due dates announced by the authorities.

Late fees:

• If the taxpayer files the ITR after the due date but before December 31 of the assessment year, a late filing fee of ₹5,000 may be levied.
• If the taxpayer files the ITR after December 31 of the assessment year, a late filing fee of ₹10,000 may be levied.
• However, if the total income of the taxpayer does not exceed ₹500,000 the maximum late filing fee will be restricted to ₹1,000.

ITR 7

ITR-7 Form is specifically designed for firms, companies, local authorities, associations of persons (AOPs), and artificial judicial persons who wish to file their Income Tax Returns. It applies to those claiming exemptions in the following categories:

• Under Section 139(4A): Charitable or Religious Trusts
• Under Section 139(4B): Political Parties
• Under Section 139(4C): Scientific Research Institutions
• Under Section 139(4D): Universities, Colleges, Institutions, or Khadi and Village Industries

Due dates:
The due dates for filing ITR-7 can vary depending on the entity’s circumstances and any extensions provided by the Income Tax Department. Generally, for entities requiring audit, the due date is usually September 31st of the assessment year. For those not requiring audit, the due date is typically July 31st of the assessment year. However, it’s important to check for any extensions or changes in due dates announced by the authorities.

Late fees:

• The penalty for filing ITR-7 late can be up to ₹5,000 if filed after the due date but before December 31st of the assessment year.
• The penalty increases to ₹10,000 if filed after December 31st.

ESIC / EPFO Compliances

What is ESIC?

ESIC stands for the Employees State Insurance Corporation, which is a social security Organization in India established under the Employees State Insurance Act, 1948. ESIC provides a Range of benefits to employees, including medical, cash, maternity, disability, and dependent Benefits, to ensure their welfare and protect them against unforeseen contingencies such as Sickness, maternity, temporary or permanent disablement, and death due to employment injury.

What is EPFO?

EPF stands for Employees Provident Fund, which is a social security and retirement savings scheme in India. It is regulated and managed by the Employees Provident Fund Organization (EPFO), a statutory body under the Ministry of Labor and Employment, Government of India. EPF is a compulsory savings scheme for employees in certain sectors and industries.

ESIC Compliances

• Applicability: If a One Person Company employs 10 or more employees (whether contractual, temporary, or permanent) on any day during the preceding 12 months, it becomes eligible for ESIC registration.
• Employee & Employer Contribution:The employee's contribution towards ESIC is a fixed percentage of their wages, which includes basic pay, dearness allowance, and any other allowances on which ESIC is applicable.
  The current rate of employee contribution towards ESIC is 0.75% of their wages and the employer's contribution rate is higher than that of the employee and is currently set at 3.25% of the employee's wages.
• Registration: One Person Company must register itself with the ESIC within 15 days from the date of the Act becoming applicable to it.
• Monthly returns: The employer is required to file monthly contribution details with ESIC. This includes details of the employees, their wages, and the contribution made by both the employer and the employee.
• Payment of Contribution: The employer must deposit the ESIC contribution on a monthly basis. Due date: 15th of the following month.

What if ESIC Returns are not filed on time?

• Late filing fees: The ESIC authorities may impose late filing fees for each day of delay in filing the returns. The late filing fees can vary depending on the duration of the delay and the number of employees covered under the ESIC scheme.
• Interest Charges: In addition to late filing fees, interest charges may also be levied on the outstanding amount if the ESIC contributions are not deposited on time.
• Maximum late fee: However, there is usually a maximum limit on the late fee that can be imposed. As of my last update, the maximum late fee for ESIC filings was Rs.5000 per return.
• Legal Consequences: Continued non-compliance with ESIC regulations may lead to legal consequences, including fines, penalties, and legal proceedings against the employer.

ESIC Returns due dates

• April to September: On or before November 12th.
• October to March: On or before May 12th.

EPFO Compliances

• Applicability: If a One Person Company employs 20 or more employees (whether contractual, temporary, or permanent) on any day during the preceding 12 months, it becomes eligible for EPFO Registration.
• Employee & Employer Contributions: The employee's contribution rate is fixed at 12% of their basic salary, dearness allowance, and retaining allowance, subject to a maximum limit specified by the government. The employer is also required to contribute an equal amount to the EPF scheme. The employer's contribution rate is also fixed at 12% of the employee's basic salary, dearness allowance, and retaining allowance, subject to the same maximum limit as the employee's contribution.
• Deposit of Contributions: Both the employee's and employer's contributions must be deposited with the EPFO on a monthly basis.
• Returns filings: The employer is required to file monthly EPF returns with the EPFO, providing details of the contributions made by both the employer and the employees.
• Issuance of EPF Statements: The employer is required to issue EPF statements to employees showing details of their contributions, interest earned, and other relevant information.

What if EPF Returns are not filed on time?

• Late filing fees: Failure to file EPF returns within the prescribed due dates may attract penalties and late fees. The exact amount of penalties may vary based on the duration of delay and the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952.
• Interest Charges: In addition to late filing fees, interest charges may also be levied on the outstanding EPF contributions if they are not deposited on time.
• Legal Consequences: Non-compliance with EPF regulations could result in legal action by the Employees Provident Fund Organization (EPFO). This may include notices, inspections, and other enforcement measures by EPFO authorities.
• Accumulation of Dues: Delay in filing EPF returns may result in the accumulation of dues and liabilities, including contributions, interest, and penalties, which could pose financial challenges for the employer.

EPF Return due date: 15th date of every next month.

Late Fees

• Employers with up to 5 Employees: No late fee is applicable for employers with up to 5 employees.
• Employers with 6 or More Employees: For employers with 6 or more employees, the late fee for delayed filing of EPF returns is ₹100 per day of delay for each month of default.