{"id":3162,"date":"2021-03-10T06:28:02","date_gmt":"2021-03-10T06:28:02","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3162"},"modified":"2021-03-10T06:28:05","modified_gmt":"2021-03-10T06:28:05","slug":"mca-notifies-new-forms-for-opcs-and-small-companies","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/","title":{"rendered":"MCA Notifies New Forms for OPCs and Small Companies"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Ministry of Corporate Affairs (MCA), by way of\nthe powers provided under section 469 (1) and (2) of the Companies Act 2013,\nhas passed a notification on 05.03.2021 to amend the provisions contained under\nthe Companies (Management and Administration) Rules 2014. The reason behind the\namendment is that the MCA has notified new forms for OPCs and Small Companies.<\/p>\n\n\n\n<p>Further, the newly amended regulations will be known\nas the Companies (Management and Administration) Amendment Rules 2021. <\/p>\n\n\n\n<p>In this learning blog, we will talk about the\nconcept of Small Companies and One Person Company, together with the prescribed\nnew forms for OPCs and Small Companies.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a5f2b6ae9c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a5f2b6ae9c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Concept_of_One_Person_Company\" title=\"Concept of One Person Company\">Concept of One Person Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Concept_of_Small_Companies\" title=\"Concept of Small Companies\">Concept of Small Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Key_Provisions_Concerning_New_Forms_for_OPCs_and_Small_Companies\" title=\"Key Provisions Concerning New Forms for OPCs and Small Companies\">Key Provisions Concerning New Forms for OPCs and Small Companies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Substitution_of_Rule_11_1_of_Companies_Management_and_Administration_Rules_2014\" title=\"Substitution of Rule 11 (1) of Companies (Management and Administration)\nRules 2014\">Substitution of Rule 11 (1) of Companies (Management and Administration)\nRules 2014<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Substitution_of_Rule_12_of_Companies_Management_and_Administration_Rules_2014\" title=\"Substitution of Rule 12 of Companies (Management and Administration) Rules\n2014\">Substitution of Rule 12 of Companies (Management and Administration) Rules\n2014<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Insertion_of_Explanation_to_Rule_20_2\" title=\"Insertion of Explanation to Rule 20 (2)\">Insertion of Explanation to Rule 20 (2)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Explanation_I\" title=\"Explanation I\">Explanation I<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Explanation_II\" title=\"Explanation II\">Explanation II<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/mca-notifies-new-forms-for-opcs-and-small-companies\/#Official_Notification_passed_by_MCA_on_New_Forms_for_OPCs_and_Small_Companies\" title=\"Official Notification passed by MCA on New Forms for OPCs and Small Companies\">Official Notification passed by MCA on New Forms for OPCs and Small Companies<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_One_Person_Company\"><\/span>Concept of One Person Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any embryonic entrepreneur who has a forward looking\napproach and wish to start his\/ her own micro business, but lacks in having the\nadequate resources, means, time, and sources to attract minded people in\nexecuting the <strong><a href=\"https:\/\/swaritadvisors.com\/business-plan\" class=\"text-primary\">business plan<\/a><\/strong> can go\nfor the option of One Person Company. It is a hybrid business format of the\nregular Sole Proprietorship and Private Limited Company and is best to enjoy\nthe best of both worlds.<\/p>\n\n\n\n<p>Further, the term One Person Company is defined\nunder the provisions of section 2 (62) of the Companies Act 2013, and to obtain\n<strong><a href=\"https:\/\/swaritadvisors.com\/one-person-company-registration\" class=\"text-primary\">One Person\nCompany Registration<\/a><\/strong>, one needs to have at least one director and one\nnominee. Also, Rs 1 lakh is required as the minimum capital requirement for the\nsame.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Small_Companies\"><\/span>Concept of Small Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Small Company is defined under the\nprovisions of section 2 (85) of the Companies Act 2013. Based on the new\ndefinition provided by MCA, a small company means a company other than a <strong><a href=\"https:\/\/swaritadvisors.com\/public-limited-company-registration\" class=\"text-primary\">Public\nLimited Company<\/a><\/strong>, which satisfies the criteria as follows:<\/p>\n\n\n\n<ul><li>Paid up Share\nCapital of such a company must not exceed Rs 2 crores;<\/li><li>Based on the\nprevious financial year\u2019s Profit and Loss Account, the annual turnover must not\nexceed Rs 20 crores;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Provisions_Concerning_New_Forms_for_OPCs_and_Small_Companies\"><\/span>Key Provisions Concerning New Forms for OPCs and Small Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key provisions concerning New Forms for OPCs and\nSmall Companies can be summarised as:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Rule_11_1_of_Companies_Management_and_Administration_Rules_2014\"><\/span>Substitution of Rule 11 (1) of Companies (Management and Administration)\nRules 2014<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>From now onwards, it is compulsory for every company\n(except an OPC and Small Company) to furnish its annual return in MCA Form MGT\n7. Further, a Small Company and One Person Company needs to file their annual\nreturn in MCA Form MGT 7A (Abridged Annual Return for OPCs and Small Companies\nfor the Financial Year 2020 &#8211; 2021), for the financial year 2020 \u2013 2021.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Rule_12_of_Companies_Management_and_Administration_Rules_2014\"><\/span>Substitution of Rule 12 of Companies (Management and Administration) Rules\n2014<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the new provisions, it shall be noted that\nthe companies mentioned above need to furnish a copy of the said annual return\nto the Registrar of Companies, together with the fees prescribed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Explanation_to_Rule_20_2\"><\/span>Insertion of Explanation to Rule 20 (2)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The two explanations inserted under the provision of\nRule 20 (2) of the Companies (Management and Administration) Rules 2014 can be\nsummarised as:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explanation_I\"><\/span>Explanation I<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Based on the new sub rule, the term \u201cNidhi\u201d means a\ncompany or a business entity that has been registered as a Nidhi with the\npurpose to cultivate the habit of saving and thrift among the members. Also, it\ndeals in receiving deposits and lending money to its members for their mutual\nbenefit and needs to comply with the provisions prescribed by the Central\nGovernment.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explanation_II\"><\/span>Explanation II<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This part of Rule 20 (2) of the\nCompanies (Management and Administration) Rules 2014 deals with the definitions\nas follows:<\/p>\n\n\n\n<ul><li>Agency;<\/li><li>Cut-off Date;<\/li><li>Cyber Security;<\/li><li>Electronic\nVoting System;<\/li><li>Remote E-voting;<\/li><li>Secured System;<\/li><li>Voting by\nElectronic Means;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the Ministry of Corporate Affairs, in consultation with the Central Government, has notified new forms for OPCs and Small Companies, i.e., <a href=\"http:\/\/www.mca.gov.in\/\">MCA<\/a> Form MGT 7A (Abridged Annual Return for OPCs and Small Companies for the Financial Year 2020 &#8211; 2021). That means from the Financial Year 2020 \u2013 2021, all the OPCs and Small Companies need to file their annual return in the respective form.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/aadhar-authentication-for-gstin-made-compulsory-by-mca\/\">Aadhar Authentication for GSTIN made compulsory by MCA<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_Notification_passed_by_MCA_on_New_Forms_for_OPCs_and_Small_Companies\"><\/span>Official Notification passed by MCA on New Forms for OPCs and Small Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/MCA-on-New-Forms-for-OPCs-and-Small-Companies-1.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">MCA-on-New-Forms-for-OPCs-and-Small-Companies-1<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ministry of Corporate Affairs (MCA), by way of the powers provided under section 469 (1) and (2) of the Companies Act 2013, has passed a notification on 05.03.2021 to amend the provisions contained under the Companies (Management and Administration) Rules 2014. The reason behind the amendment is that the MCA has notified new forms [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3168,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50,9],"tags":[478],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3162"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3162"}],"version-history":[{"count":5,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3162\/revisions"}],"predecessor-version":[{"id":3171,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3162\/revisions\/3171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3168"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}