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OPC Compliance in India ⚖️📋
One Person Company (OPC) is a unique business structure owned and managed by a single individual. Defined under Section 2(62) of the Companies Act, 2013, an OPC has only one member who holds 100% ownership and control of the company. In India, OPCs are registered only as Private Limited Companies, and thus all legal provisions applicable to Private Limited Companies also apply to OPCs — including specific annual compliance requirements.
What is a One Person Company (OPC)? 👤🏢
An OPC is a company with a sole member or shareholder. This structure is preferred by entrepreneurs who want to enjoy the benefits of a corporate entity while retaining sole ownership, unlike a sole proprietorship. OPC registration is ideal for businesses with a single promoter.
Key Compliances for One Person Companies 📅✅
OPCs must fulfill mandatory annual compliance requirements to maintain their legal status and avoid penalties. These include:
- Annual Return Filing with the Ministry of Corporate Affairs (MCA)
- Submission of audited financial statements
- Conducting Annual General Meetings (AGM)
- Filing Income Tax Returns
- Maintaining statutory registers and records
- Appointment of an auditor
Failure to comply can lead to severe penalties, including removal from the Registrar of Companies (RoC) register and disqualification of directors.
Importance of OPC Annual Compliance 🔍⚠️
Operating an OPC requires adherence to annual compliance laws from the date of incorporation. Ignorance or delay can result in hefty fines, legal scrutiny, and challenges in raising capital or maintaining company operations. Regular compliance safeguards your company’s legal standing and reputation.
Benefits of Timely OPC MCA Compliance 🎯💼
- Limited Liability Protection: Owners are shielded from personal liability.
- Easy Fundraising: Compliance boosts investor confidence.
- Active Company Status: Avoid deregistration by staying compliant.
- Accurate Financial Records: Ensures reliable reporting for stakeholders.
- Avoidance of Penalties: Prevents fines and legal complications.
Mandatory Annual Filing Requirements for OPCs 📋⏳
Compliance Activity | Description | Deadline |
Annual General Meeting (AGM) | Conduct AGM within 6 months of financial year-end, even if only one director exists. | Within 6 months after FY end |
Financial Statements Filing | File Balance Sheet, Profit & Loss, and cash flow statements with RoC. | Within 30 days of AGM |
Annual Return Filing (Form MGT-7) | File company details including directors and shareholders. | Within 180 days of financial year-end |
Income Tax Returns | File income tax returns with the Income Tax Department. | July 31st (individuals) / Sept 30th (business) |
Statutory Audit | Appointment of a Chartered Accountant to audit financial statements. | As per audit schedule |
Director KYC (Form DIR-3-KYC) | Directors holding DIN must file KYC annually. | September 30th of the following year |
Return of Deposits (Form DPT-3) | Return of deposits and particulars not considered deposits. | June 30th |
Additional OPC Compliance Highlights 📌
Board Meetings
- Minimum one Board Meeting annually.
- Meetings should be spaced at least 90 days apart.
- Quorum provisions do not apply to OPC with only one director.
Auditor Appointment
- Mandatory appointment of a Chartered Accountant auditor.
- Auditor rotation rules are exempted for OPCs.
Disclosure of Interest (Form MBP-1)
- Directors must disclose interests in other entities annually.
- Penalty for non-compliance: imprisonment up to 1 year or fine up to ₹1 lakh.
Statutory Registers Maintenance
- Maintain records like Register of Members, Directors, Minutes, etc.
- Record key events like share transfer, director appointment/resignation, auditor changes.
Penalties for Non-Compliance 🚨💰
- Late filing fees: ₹200 per day for Annual Return delays.
- DIN KYC non-compliance penalty: ₹5,000.
- Delay in filing Financial Statements (Form AOC-4): ₹100/day (max ₹10,00,000).
- Delay in Annual Return (Form MGT-7): ₹100/day (max ₹5,00,000).
Non-compliance may lead to deregistration and legal action.
Income Tax and GST Filing for OPCs 💵🧾
- Income Tax: Mandatory annual filing of ITR regardless of turnover.
- GST Compliance: OPCs registered under GST must file returns regularly:
- Quarterly returns if turnover ≤ ₹5 crores
- Monthly returns if turnover > ₹5 crores
- Annual return and audit if turnover exceeds ₹2 crores
Maintaining timely tax compliance avoids penalties and interest charges.
Documents Required for OPC Annual Compliance 📂📝
- Sales and purchase receipts, invoices
- Bank statements for the financial year
- GST return details (if applicable)
- TDS challans and return filings (if applicable)
- Balance Sheet & Profit & Loss account
- Financial Statements & Director’s Report
- Details of members and directors
Why Choose India Fills for OPC Compliance? 🌟📞
At India Fills, our team of experts ensures smooth and timely OPC annual compliance. We assist you in meeting all mandatory filings, audits, and regulatory requirements with precision. Our dedicated professionals provide timely updates, expert advice, and complete support for your OPC compliance journey.
Contact us today to make your OPC compliance hassle-free!
India Fills Ledgers Platform for OPC 💻📊
Our Ledgers Platform is a cloud-based accounting and bookkeeping software designed specifically for OPCs. It helps you:
- Manage financial transactions seamlessly
- Stay updated with statutory compliance
- Access your accounts from anywhere
This platform simplifies your accounting and compliance process, giving you more time to focus on growing your business.
