One person company  is a private company that can be formed with just one director and one member. It is a fairly new concept introduced in 2013 under the Companies act. Statutory Audit of OPC is mandatory however a tax audit is required when the turnover of an OPC Registration in India Online exceeds Rupees One Crore. Auditing is a systematic examination of books of accounts, documents, and verifies the financial position of the company. The need of the audit arises to ensure the true and fair view of accounts of the company. Every company registered under the Companies Act, 2013 or Online OPC Registration in India required to appoint an auditor to audit the accounts every year. The auditor has to be appointed by the Board of directors by passing a resolution. Only a qualified chartered accountant can be the auditor for OPC. The company needs to file the annual report to the ROC attached to Form MGT-7.

 As per section 142(1) remuneration shall be fixed in general meeting. Section 173(1) states that the companies need to adopt their financial statement which needs to get signed by the directors. The financial statements than need to be audited & has to be uploaded in Form AOC-4. If the company or the assigned officer do not comply with the provisions of auditing the following penalties can be imposed:

  • Company: Rs.25,000-Rs.5,00,000
  • Default officer: Rs.10,000-Rs.1,00,000 or Imprisonment of one year or Both

Types of Audit Required:

  • Statutory Auditing: Statutory Auditing is mandatory by law it ensures the correct view of the book of accounts to the public. The auditor has to be appointed within 30 days from the date of incorporation by every company. Under the Companies Act, the company required to appoint a qualified chartered accountant as an auditor. Irrespective of the paid up share capital or turnover of the company, financial accounts needs to be audited every financial year.
  • Tax Auditing: Every OPC registered or OPC Registration in India Online with the MCA (Ministry of Corporate Affairs) is under an obligation to comply with the tax audit if turnover exceeds Rs.50 lakhs for services and Rs.2 crores for other business.

Company Vakil can help with legal aspects to the incorporation of OPC Registration in India Online to make the life of client easier and to help the client to focus on the business more than to get stuck with all legal technicalities.