A clear comparison of Annual compliance for OPC and LLPPosted by neusourcestartupminds on February 20th, 2020 One Person Company and Limited liability partnership are two of the most common business entities that prevail in India. Both of them have a set of rules and compliances that need to be followed in order to run the business smoothly without any worries and legal matters. There are many major differences in the Annual compliance for OPC and that of an LLP. Here, we will discuss the end to end compliances that are required for both the entities along with various regulations and laws required to govern them One Person Company The OPCs work according to the Companies Act, 2013 and all the associated rules. Starting from maintaining the accounts books to the composition of annual financial statements and getting various events approved for the company by conducting general meetings and board meetings are some of the major Annual compliances for OPC. Limited Liability Partnership Similar to OPC, there are important Annual compliances for LLP as well that a company has to abide by. There are major statutory requirements as per the Limited Liability Act 2008 and all its regulations. All the company accounts along with a record of partner meetings, partner change or adding of the new member and the agreement signed by all members need to be prepared by the legal advisory on a regular basis. Major list of compliances It is crucial to have complete knowledge about all the major compliances so that you never get stuck between any legal matters and pay high penalties. Let’s take a look at all the key compliances that LLP and OPC need to adhere with in details:
The OPC can be started by one person who can act both as the shareholder and the director. For LLP, a minimum of two people is required.
This is mandatory for both OPC and LLP.
For OPC, it is mandatory to maintain the records of minutes of general meetings and board meetings and share certificates. LLP needs to maintain the minute book in order to record all meetings held among the partners.
For OPC, if there is only one director in the company, no board meetings are required. If in case there are more than 1 director, it is required to have the first meeting within 30 days of company incorporation. Also, it is mandatory to have at least one meeting at every half of the calendar year and there should be gap no lesser than 90 days between every two consecutive meetings. For LLP, no meetings are mandatory. There can be certain meetings held according to the LLP act including change in LLP objects, the expulsion of any partner or admission of a new person etc.
No AGM required for OPC as well as LLP.
OPC needs to mandatorily file form AOC-4 with details of the balance sheet, cash flow statement, change in equity statements and profit and loss details. The annual return has to be filed via FormMGT-7. E-form 8 has to be filed by LLP for account statements and solvency statement. Annual return has to be filed via e-Form 11.
The tax return has to be filed in form ITR-V1 for OPC. The tax return has to be filed in form ITR-V for LLP.
It is mandatory for OPC. For LLP, it is required when turnover crosses 40 Lakhs or if the contribution is above 25 Lakhs.
It has to be done for OPC and LLP when the turnover crosses one crore. These are some of the key Annual compliances for LLP and OPC which an organization needs to follow strictly.
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