Overview of One Person Company Annual Compliance
The Companies Act 2013 is responsible for corporate governance in India. One Person Company (hereinafter referred to as OPC) is a business structure that allows a single individual to own and manage a company with limited liability. OPCs, like any other company incorporated in India, are required to comply with some specific legal and regulatory obligations. These obligations are mandatory in nature, and non-compliance with them can lead to hefty penalties and repercussions. Every year, OPCs in India have to file a series of compulsory filings to ensure that the company operates in line with the established law. Annual Compliance for OPCs includes holding an Annual General Meeting (hereinafter referred to as AGM) and filing an annual financial statement of the company, including its balance sheet and profit and loss account, to the Registrar of Companies (hereinafter referred to as RoC). These filings are filed in different forms, such as AOC-4, MGT-07, etc. Annual compliance not only ensures that the company adheres to statutory provisions but also helps maintain a good reputation in the eyes of stakeholders and investors. OPCs, in compliance with the provisions of the Companies Act 2013, require hiring an auditor and publishing income tax returns yearly. Following those criteria promotes obligation and openness, which helps the OPC to run without problems and helps attract new investors. Ignoring these regulatory obligations can have severe repercussions on the company. Therefore, for continuous success, the existence and legality of the OPC depend on a comprehensive understanding of and adherence to its statutory responsibilities.
Importance of Filing Annual Compliance for an OPC
Annual Compliance with an OPC has several advantages, including:
- Legally Compliant: Filing your annual compliance ensures that your OPC follows the rules set by the Companies Act 2013.
- Preventing Deregistration: If you miss the required filings, the Registrar of Companies (RoC) may strike your OPC off the official register, which can shut down your business.
- Building Trust and Credibility: Regular and timely filing shows that your company operates transparently and responsibly. Timely filing of the required returns and documents boosts your credibility with investors, banks, and other business partners.
- Avoiding Fines and Penalties: Missing deadlines for compliance can lead to fines, which can impact our business.
- Financial Transparency: By submitting your financial statements, you provide a clear picture of your company's financial health, which is crucial for planning, getting loans, or attracting potential investors.
- Personal Assets Protected: Filing the necessary paperwork ensures that the limited liability protection of your OPC is maintained, which means your personal assets are kept safe from business risks.
OPC Annual Compliance Checklist
A One Person Company (OPC) is required to fulfil specific annual compliance obligations as outlined in the Companies Act, 2013, to avoid penalties or deregistration. Use this yearly compliance checklist to guarantee your One Person Company (OPC) stays compliant with Indian laws:
- Hold an annual general meeting (AGM) six months after the end of the financial year.
- File Form AOC-4 along with the ROC 180 days after the end of the financial year.
- Form MGT-7: File Form MGT-7 with the ROC 180 days after the end of the financial year.
- The director of an OPC is obligated to submit the MBP-1 form annually. The form discloses the director’s interest in any other entity.
- Hire a working Chartered Accountant to be the Auditor.
- File the Income Tax Returns by September 30 of every financial year.
- Make sure all files and payments connected to GST are current.
- Maintaining compliance with TDS and PF/ESI rules will help you.
- Annually, schedule at least one Board meeting spaced at least ninety days apart.
- Keep all required records kept current, including the lists of directors and members.
- Form DIR-3 KYC for Directors: File Form DIR-3 KYC for every director by July 31 of every year.
OPC Annual Filing: Mandatory Compliances
Being a One Person Company (OPC) in India comes with four yearly filing-mandated compliance obligations:
1. Every OPC must submit its Annual Return (Form MGT-7) to the ROC within 180 days after the end of the financial year. This form includes the following information:
- Details about the company, such as its name, registration number, and office address.
- Information about the shareholder.
- Change in Shareholding pattern (if any)
- Director’s Information
- Declaration about the Financial status of the Company.
2. OPCs have to submit their Financial Statements (Form AOC-4) to the ROC within 180 days after the end of the financial year. This form contains the following information:
- Financial Statement including Balance Sheet, Profit & Loss Statement, Cash Flow Statement.
- Director’s Report
- Certification by the Director
- If there have been any transactions between the company and its related parties, such as directors or their family members, they should be properly disclosed.
3. OPCs have to name a professional Chartered Accountant as their Auditor and submit Form ADT-1 with the ROC. This form is used to appoint or re-appoint an auditor of the company, and it contains the following information:
- Details of the Company, including its registration number and registered office address
- Detail of the Auditor- its name, address, membership number, and details of whether the auditor is firm or not.
- Consent of the Auditor.
4. Moreover, the OPCs have to submit their Income Tax Returns by September 30 of every financial year.
Documents Required for OPC Annual Compliance Filing
Get the following key documents to guarantee seamless yearly filing for your One Person Company (OPC):
1. PAN, Corporate Identification Number, Registered Office Address of the Company.
2. List of the activities/Business activities or operations carried out by the Company during the financial year.
3. Name, address, and contact details of the sole shareholder.
4. Shareholding details (even though there is only one member, this still needs to be recorded).
5. Name, address, and contact details of the sole director of the OPC.
6. Director Identification Number (DIN) of the director.
7. Dates indicating the start and end of the company’s financial year (usually from April 1 to March 31).
8. A declaration from the Director of the company confirming the company’s compliance with the Companies Act, 2013.
9. Declaration regarding Directors' interests in the company, if applicable.
10. List all securities the corporation has, including any preference shares, convertible securities, etc.
11. List of shares and debentures issued during the year, including changes in the issued capital.
12. Detailed document containing information about the management of the company, such as new appointments and resignations.
13. A statement showing the company's financial position, including assets, liabilities, and equity, as of the end of the financial year.
14. A summary of income, expenses, profits, and losses for the financial year.
15. A report showing the inflows and outflows of cash in the business (not mandatory for OPCs unless required by accounting standards).
16. A report signed by the director (in OPC, this is usually the sole shareholder/director) confirming the accuracy of the financial statements.
17. An independent auditor’s report confirms that the financial statements comply with accounting and legal standards (if the company has appointed an auditor).
18. A copy of the AGM minutes or signed resolutions documenting approval of the financial statements and auditor’s appointment.
19. The signed resolution passed by the sole member or the director approving the financial statements for the year
20. A copy of the filed ITR form for the relevant year confirming the company has paid its taxes.
21. A copy of the audited financial statements (Balance Sheet, Profit & Loss account) submitted with the Income Tax Return.
22. For Director KYC and Shareholder KYC norms:
- Aadhar card or Passport of the Director
- PAN Card of the Director
- Proof of Address of the Director
- Recent two photographs of the Director
23. Any changes in the shareholding pattern throughout the year.
24. Details of Any Securities Transfer (if applicable).
OPC Annual Compliance Filing Procedure
For a one-person company (OPC), the yearly filing process consists of many important stages that are as follows:
1. Compile all the required papers and documents, including compliance certifications, shareholder information, and financial statements.
2. Hire a certified Chartered Accountant to serve as the OPC auditor. This stage is crucial for correct financial reporting.
3. Though not required of OPCs, conducting the Annual General Meeting (AGM) is advised for openness and good governance.
4. File Form MGT-7, the Annual Return. It has to be submitted within 180 days from the financial year-end with the ROC.
5. File Form AOC-4, which consists of the reviewed financial records, has to be filed within 180 days from the financial year-end.
6. Submit the Auditor's Report, along with the financial statements, to substantiate the accuracy and truthfulness of the accounts.
7. File Income Tax Return (ITR-6) by 30th September of every financial year.
8. Ensure compliance with all relevant duties relating to:
- Goods and Services Tax (GST)
- Tax Deducted at Source (TDS)
- Provident Fund (PF) and Employee State Insurance (ESI)
Penalties for Not Filing Annual Compliance for OPC
Compliance |
Penalties and Consequences for untimely submission |
Annual Return: MGT-7 |
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Financial Statements: AOC-4 |
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Failure to comply with the Annual Filings |
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Why Choose Kanakkupillai for OPC Compliance?
As a leading online legal services provider in India, Kanakkupillai focuses on One Person Company (OPC) registration and compliance. Our industry-specific uniqueness comes from our dedication to quality and client satisfaction.
- Competent Group of Professionals: Our seasoned OPC compliance team is committed to helping you at every stage of the compliance process. We make sure you receive the help you need as we appreciate the complexity involved.
- Prompt and Correct Guidance: We help you negotiate legal obligations confidently by offering quick and accurate compliance-related advice. Being proactive helps reduce non-compliance risk.
- Customized Answers: At Kanakkupillai, we provide tailored solutions that meet your OPC's particular requirements. Our services are designed to match the needs of clients and their needs to guarantee the best results.
- Affordable Services: We believe in giving the company the best result, and therefore, our services are reasonably priced so that you can focus on the growth of your business, not the finances.
- Hassle-free Compliance Process: Our staff manages all paperwork and legal requirements so you may concentrate on expanding your company.
For your OPC compliance requirements, choose Kanakkupillai for a smooth, encouraging path to maintaining your company's legal status.
Frequently Asked Questions
What happens if an OPC misses its annual compliance deadlines?
Missing annual compliance deadlines can lead to fines, penalties, or even the company being struck off the official register.Is it necessary for an OPC to conduct a Board meeting?
Yes, an OPC must hold at least one Board meeting every six months, with a gap of at least 90 days between each.Do OPCs need to hire an auditor?
Yes, OPCs must appoint a certified auditor to audit their financial records under the Companies Act, 2013.When should an OPC file its Annual Return (Form MGT-7)?
The Annual Return (Form MGT-7) must be filed with the Registrar of Companies within 180 days from the end of the financial year.Does an OPC have to rotate its auditor?
No, the provision for auditor rotation does not apply to One Person Companies.What documents are required for OPC's annual filing?
Key documents include financial statements, a declaration of compliance, details of the shareholder and director, and any changes in shareholding.What is the deadline for submitting Income Tax Returns for an OPC?
Income Tax Returns for an OPC must be filed by September 30th every year, as per the Income Tax Act.What makes Us Different

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