Introduction

One Person Company (OPC) is an excellent business structure for solo entrepreneurs who want the benefits of a corporate entity with limited liability. However, just like other business structures, OPCs must adhere to various compliance requirements under the Companies Act, 2013 and tax laws in India.

Failure to comply with these regulations can result in penalties, legal issues, and even disqualification of the company. In this guide, we will cover all the mandatory compliance requirements for an OPC, making it easier for you to stay legally compliant.

Why is Compliance Important for OPCs?

1. Legal Recognition – Ensures the company’s status as a legitimate business.
2. Avoids Penalties – Prevents fines and disqualification by regulatory authorities.
3. Enhances Business Credibility – Builds trust among customers, suppliers, and investors.
4. Smooth Business Operations – Helps in hassle-free bank loans, contracts, and financial transactions.

Annual Compliance Requirements for OPC

An OPC must comply with the following annual legal and tax requirements:

1. Filing of Financial Statements (AOC-4)

• An OPC must file its financial statements with the Registrar of Companies (ROC) using Form AOC-4.
• Due date: Within 180 days from the end of the financial year (i.e., by September 27 if the financial year ends on March 31).
• Penalty for non-compliance: ₹100 per day.

2. Filing of Annual Return (MGT-7A)

• An OPC must file its Annual Return with the ROC using Form MGT-7A.
• Due date: Within 60 days from the end of the financial year (i.e., by May 30).
• Includes details of shareholding, financials, and governance structure.

3. Holding Board Meetings

• An OPC must hold at least one board meeting every six months.
• If the company has only one director, a resolution must be recorded and signed in the minutes book.

4. Maintaining Statutory Registers and Records

• An OPC must maintain various records such as:
  • Register of Members
  • Board Meeting Minutes
  • Financial Statements
  • Books of Accounts

5. Income Tax Filing (ITR-6)

• An OPC must file its income tax return (ITR-6) even if it has zero revenue.
• Due date: July 31 (if tax audit is not required), September 30 (if tax audit is required).

6. GST Compliance (If Applicable)

• An OPC must register for GST if its annual turnover exceeds ₹20 lakh (₹10 lakh for northeastern states).
• It must file:
  • GSTR-1 (monthly/quarterly) for outward supplies.
  • GSTR-3B (monthly/quarterly) for summary returns.
  • GSTR-9 (annually) if turnover exceeds ₹2 crore.

7. Director KYC (DIR-3 KYC)

• Every OPC director must submit their KYC details to the Ministry of Corporate Affairs (MCA) through Form DIR-3 KYC.
• Due date: September 30 every year.

8. Tax Audit Compliance (If Applicable)

• If the annual turnover of the OPC exceeds ₹1 crore (for businesses) or ₹50 lakh (for professionals), a tax audit by a Chartered Accountant (CA) is mandatory.
• Filing deadline: September 30.

9. TDS Compliance

• If an OPC makes payments that require tax deduction at source (TDS), it must:
  • Deduct TDS at the applicable rate.
  • File quarterly TDS returns (Form 24Q and 26Q).
  • Issue TDS certificates (Form 16/16A) to payees.

Other Compliance Requirements

Apart from annual filings, an OPC must also adhere to event-based compliance, which depends on specific business activities.

1. Changes in Directors (DIR-12)

• If the OPC appoints or removes a director, it must file Form DIR-12 within 30 days.

2. Change in Registered Office (INC-22)

• If an OPC changes its registered office address, it must notify the ROC through Form INC-22.

3. Increase in Capital (SH-7 and PAS-3)

• If the company increases its authorized or paid-up capital, it must file Form SH-7 and PAS-3.

4. Closure of an OPC (STK-2)

• If an OPC wishes to close its operations, it must file Form STK-2 with the ROC.

How Difficult is OPC Compliance?

• Moderate Difficulty – Compliance requirements for an OPC are fewer than those for a Private Limited Company, but still require professional assistance.
• Time-Consuming – While the compliance burden is lower, timely filing is essential to avoid penalties.
• Expert Guidance Required – Legal documentation and financial filings often require a Chartered Accountant (CA) or a professional service provider.

Why Choose ASK ASSOCIATES for OPC Compliance?

Managing compliance can be overwhelming, especially for solo entrepreneurs. That’s why ASK ASSOCIATES offers hassle-free OPC compliance services, including:

✔ Timely ROC Filings – Avoid penalties with on-time submissions.
✔ Expert Tax Consultation – Ensure correct tax filing and planning.
✔ Legal Compliance Management – Handle GST, TDS, and annual returns effortlessly.
✔ Affordable Plans – Cost-effective compliance solutions for OPCs.

Want to keep your OPC legally compliant without any stress? Contact ASK ASSOCIATES today and let our experts handle it for you!