Introduction to One Person Company (OPC)
Annual Compliance for OPC is a revolutionary concept introduced under the Companies Act, 2013, allowing a single individual to incorporate and manage a company. It offers the benefits of limited liability, a separate legal entity, and simplified compliance.
Why Annual Compliance is Important
Every OPC must follow specific annual compliance to remain in good legal standing. These are not just formalities—they’re mandatory legal obligations.
Legal Standing
Compliances help ensure your OPC remains legally recognised and avoids default status with the Registrar of Companies (RoC).
Avoiding Penalties
Non-compliance can lead to hefty fines, penalties, or even disqualification of the director. It’s better to stay on the safe side.
Business Credibility
Investors, banks, and partners trust companies that maintain proper records and submit timely filings.
Basic Annual Compliance Checklist
Here's a breakdown of the key annual compliance requirements for OPCs:
Form MGT-7A – Annual Return
- Purpose: Contains basic company details such as ownership and directorship.
- Due Date: Within 60 days of the end of the financial year.
- Filing Authority: Registrar of Companies (RoC).
Form AOC-4 – Financial Statements
- Purpose: Filing of financial statements like profit & loss, balance sheet, etc.
- Due Date: Within 180 days from the end of the financial year.
- Must Be Audited: Regardless of turnover.
Income Tax Return (ITR-6)
- Due Date: Typically on or before 30th September.
- Mandatory: Even if there’s no income or profit.
DIR-3 KYC for Director
- Purpose: Director identification number (DIN) KYC update.
- Due Date: Every year before 30th September.
Form DPT-3 – Return of Deposits
- Applicability: If the OPC has received any loan or advance.
- Due Date: 30th June annually.
Form MSME-1 – Vendor Payments (If Applicable)
- Purpose: Disclosure of delayed payments to Micro & Small Enterprises.
- Due Dates: Half-yearly (April and October).
Audit Requirements for OPC
Applicability
An OPC must get its books audited annually by a Chartered Accountant, irrespective of its annual turnover.
Auditor Appointment
The first auditor must be appointed within 30 days of incorporation, and subsequent appointments must follow the 5-year rule.
Consequences of Non-Compliance
Monetary Penalties
Late filing can attract fines ranging from ₹10,000 to ₹1 lakh and more, depending on the duration and nature of the default.
Legal Proceedings
Prolonged non-compliance may invite inspection or prosecution under the Companies Act.
Director Disqualification
If a company fails to file returns for three consecutive years, the director can be disqualified for 5 years.
Conclusion
Running a one-person company might seem simple, but staying compliant is the real test. Timely filing of MGT-7A, AOC-4, ITR, and other returns not only protects you from penalties but also shapes your business into a credible and successful enterprise. Make compliance a habit, not a hassle.