Start Business
Start Business
Registration & License
Registration & License
Trademark Filing
Trademark Filing
Goods & Service Tax
Goods & Service Tax
Income Tax
Income Tax
MCA Services
Tender Registration
Tender Registration
Others
One Person Company (OPC) Compliance
We have Price Starting from Only ₹
Contact Us Or Call Now 
Best & Reasonable Plans
Smart solutions,fair prices - your success starts with the Innovative solutions, competitive pricing – your journey to success begins with the perfect balance for growth!
OVERVIEW
A One Person Company (OPC) is a unique business structure that allows a single entrepreneur to operate a corporate entity with limited liability. While OPCs enjoy several benefits, including simplified regulatory requirements, they must adhere to specific compliance norms under the Companies Act, 2013. These include annual filings, financial reporting, and tax compliance to ensure transparency and legal standing. Non-compliance can result in penalties, legal consequences, and potential disqualification of the director.
Key Features
- • Annual Return Filing : An OPC must file its financial statements, including the Profit & Loss Account and Balance Sheet, with the Registrar of Companies (ROC) annually. This ensures that the company maintains transparency and adheres to regulatory obligations.
- • Mandatory Income Tax Return Filing : Like any corporate entity, an OPC is required to file its Income Tax Return (ITR) annually with the Income Tax Department. The tax filing must be completed before the 30th of September each year to avoid penalties and maintain good financial standing.
- • Board and AGM Exemptions : Unlike other private limited companies, an OPC is not required to hold Annual General Meetings (AGM). However, compliance with board resolutions and financial disclosures is still mandatory. The company must also appoint an auditor to review financial statements as per statutory requirements.
Introduction to OPC Compliance
A One Person Company (OPC) is a unique business structure introduced under the Companies Act, 2013, that allows a single entrepreneur to operate a corporate entity with limited liability. While an OPC enjoys simplified regulations compared to private and public companies, it still has specific compliance obligations that must be fulfilled annually to maintain its legal status and avoid penalties.
OPC compliance primarily includes annual return filing, financial statement submissions, tax filings, and regulatory reporting. The director of an OPC is responsible for ensuring that the company adheres to these requirements as per the guidelines of the Ministry of Corporate Affairs (MCA) and the Income Tax Department.
Unlike traditional companies, an OPC does not need to hold annual general meetings (AGMs) or appoint multiple directors. However, it must submit important filings such as AOC-4 (financial statements) and MGT-7A (annual return) to the Registrar of Companies (ROC). Additionally, if the OPC’s turnover exceeds ₹2 crore or its paid-up capital exceeds ₹50 lakh, it must convert into a private or public limited company.
Ensuring compliance helps an OPC avoid penalties, maintain credibility, and sustain smooth business operations. With proper financial record-keeping and timely submissions, an OPC can focus on growth while staying legally protected.
Types of OPC Compliances
Compliance for a One Person Company (OPC) is broadly categorized into mandatory annual compliances, event-based compliances, tax-related compliances, and secretarial compliances. Each of these ensures that the OPC functions smoothly within the legal framework while avoiding penalties. Below is a detailed explanation of each type:
Annual Compliances
An OPC is required to file annual returns and financial statements with the Registrar of Companies (ROC) to maintain transparency and accountability. The MGT-7A form must be submitted, containing details about the company's shareholding and management, while the AOC-4 form must be filed to report financial statements. These filings are crucial for ensuring that the company is in good financial health and operating legally.
Event-Based Compliance
Apart from regular annual filings, an OPC must also comply with various event-based requirements. These arise whenever there is a change in the company’s structure or operations, such as appointing a nominee director, changing the company’s registered office, increasing paid-up capital, or altering the shareholding pattern. In such cases, specific forms must be filed with the MCA within the prescribed timeframe to update the company's records.
Tax Compliance
Like any other company, an OPC must comply with taxation laws, including filing income tax returns, GST returns (if applicable), and tax deductions at source (TDS) filings. The OPC must file its income tax return (ITR-6) before September 30 each financial year. If the company's annual turnover exceeds ₹20 lakh (₹10 lakh for northeastern states), it must also register under GST and file monthly or quarterly GST returns. Additionally, if an OPC deducts TDS while making payments to vendors or employees, it must file TDS returns quarterly.
Secretarial Compliance
Although an OPC is exempt from holding Annual General Meetings (AGMs) like private limited companies, it must still maintain proper secretarial records. This includes maintaining minutes of board meetings, updating statutory registers, and ensuring timely submission of resolutions. Furthermore, if an OPC's turnover exceeds ₹2 crore or its paid-up capital surpasses ₹50 lakh, it must convert into a private or public limited company, which requires additional compliance steps.
Silent Features
Limited Liability Protection
Single Ownership with Corporate Status
Mandatory Annual Filings
Nominee Director Requirement
Relaxation from Board and General Meetings
Conversion Obligation
Advantages of OPC Compliance
- Legal Recognition & Credibility: Regular compliance ensures that an OPC maintains good standing with the Ministry of Corporate Affairs (MCA), enhancing trustworthiness among stakeholders, investors, and financial institutions.
- Avoidance of Legal Penalties: Timely compliance helps an OPC avoid penalties, fines, and legal consequences. Non-compliance can lead to hefty fines and disqualification of the director.
- Ease of Business Operations: Unlike private limited companies, OPCs enjoy relaxed compliance norms, reducing paperwork and allowing business owners to focus on operations rather than legal complexities.
- Tax Benefits & Exemptions: OPCs enjoy lower tax rates compared to sole proprietorships and are eligible for various tax deductions and exemptions, reducing their financial burden.
- Limited Liability Advantage: Since an OPC has a separate legal identity, the owner is not personally liable for the company's debts, protecting personal assets in case of financial distress.
- Smooth Business Continuity: The requirement of a nominee director ensures continuity in case of unforeseen circumstances, preventing abrupt business disruptions.
Documents Required
Financial Statements (AOC-4)
Board Resolution & Director’s Report
Annual Return (MGT-7A)
Income Tax Return (ITR-6)
TDS Returns (Form 24Q & 26Q) (if applicable)
GST Return (if applicable)
Step-by-Step Guide for OPC Compliance
Here are 5 steps to ensure OPC Compliance
Step 1
Preparation of Financial Statements
Step 2
Filing of Annual Return (MGT-7A)
Step 3
Submission of Financial Statements (AOC-4)
Step 4
Income Tax & GST Compliance
Step 5
TDS Compliance (if applicable)
OPC Compliance Requirements for Listed Companies
| Form | Compliance Requirement | Due Date | Penalty |
|---|---|---|---|
| Annual Return Filing (MGT-7A) | Filing of the annual return of the OPC with the Registrar of Companies (ROC) | 60 days from the AGM (or 28th November if no AGM is held) | ₹100 per day of delay |
| Financial Statements (AOC-4) | Submission of financial statements, including balance sheet and profit & loss account | Within 180 days from the end of the financial year | ₹100 per day of delay |
| Income Tax Return (ITR-6) | Filing of OPC's income tax return with the Income Tax Department | 31st October of the assessment year | Interest under Section 234A, late fees up to ₹10,000 |
| GST Returns (if registered) | Filing of GST returns (GSTR-1, GSTR-3B, etc.) | Monthly/Quarterly as per scheme | Late fee of ₹50 per day (Nil return: ₹10 per day) |
| DIR-3 KYC (for designated partners) | KYC compliance for OPC's designated partners | 30th September each year | ₹5,000 per designated partner for late filing |
Empowering Your Business to Stay Ahead
Ensuring excellence in every aspect of business operations
Helping businesses to stay ahead of the competition effectively
Providing expert guidance for long-term business growth
