A One Person Company (OPC) is a unique business structure that allows a single entrepreneur to enjoy the benefits of a company with limited liability while retaining complete control over the business. However, even though an OPC has fewer compliance requirements than other companies, it is still mandatory to adhere to certain annual filings and statutory obligations under the Companies Act, 2013.
This article will guide you through the key annual compliance requirements for an OPC in India, helping you stay legally compliant and avoid penalties.
Key Annual Compliances for OPC
1. Annual Return (Form MGT-7A)
- Due Date: Within 60 days from the date of the AGM or the due date of the AGM.
- Details Required: The annual return must include information about the shareholding structure, changes in directorship, and other company-related details for the financial year.
Note: For OPCs, holding an AGM is not mandatory; however, a return must be filed within 60 days from the end of the 6-month financial year (i.e., by September 27).
2. Financial Statements (Form AOC-4)
- Due Date: Within 180 days from the end of the financial year (i.e., by 27th September).
- Details Required: Balance sheet, profit and loss account, cash flow statement, auditor’s report, and board’s report.
3. Income Tax Return (ITR-6)
- Due Date: 31st October of every assessment year.
- Applicable Law: As per the Income Tax Act, an OPC is required to file its income tax return electronically using Form ITR-6.
4. Appointment of Auditor (Form ADT-1)
- Due Date: Within 15 days from the appointment of the auditor.
- Details Required: Information about the auditor appointed for a term of 5 years. Filing this is a one-time compliance unless there’s a change in the auditor.
5. Maintenance of Statutory Registers
- The OPC must maintain various registers, such as:
- Register of members
- Register of loans and investments
- Board meeting minutes (at least one meeting in each half of the calendar year, with a minimum gap of 90 days)
Optional but Good-to-Follow Compliances
- GST Filings (if registered under GST)
- TDS Filings (if liable to deduct tax at source)
- Professional Tax Returns (if applicable in the respective state)
- ESI/PF Returns (if employees are eligible)
Penalties for Non-Compliance
Failing to comply with the OPC annual compliance requirements can lead to:
Non-Compliance
Penalty
Not filing MGT-7A or AOC-4
₹100 per day per form (no upper limit)
Income Tax Non-Filing
Minimum ₹1,000 to ₹10,000 depending on income slab and delay
Failure to maintain registers
Penalties as prescribed under the Companies Act, 2013
Conclusion
Although an OPC offers flexibility, entrepreneurs must not overlook their annual compliance obligations. Timely filings not only avoid penalties but also enhance your company’s credibility for future investments or funding opportunities.
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