OPC Compliance

OPC Compliance Guide

By Easy My Tax – Simplifying Your OPC Compliance

A One Person Company (OPC) is a company owned and managed by a single individual. As defined under Section 2(62) of the Companies Act 2013, an OPC has only one member who holds 100% shares and controls the management. OPCs in India are registered as Private Limited Companies, so all rules applicable to Private Limited Companies also apply to OPCs, including mandatory annual compliance.

What is a One Person Company?

A One Person Company is ideal for entrepreneurs who want to run a business with full control while enjoying the benefits of a company structure. OPCs are preferred over sole proprietorships due to advantages like limited liability and easier fund-raising.

Importance of OPC Annual Compliance

Every OPC must comply with annual filing and regulatory requirements to remain legally active. Failure to meet these obligations can result in penalties, removal from the Registrar of Companies (RoC) register, or disqualification of directors.

Compliance ensures transparency, protects limited liability, and helps maintain the company’s good standing.

Mandatory OPC Annual Compliance Requirements

Conduct Annual General Meeting (AGM)

OPCs must hold an AGM within six months from the end of the financial year. Even if the OPC has only one director, the meeting is mandatory under compliance rules.

Filing Financial Statements

Prepare and file financial statements such as the balance sheet, profit and loss account, and cash flow statements with the RoC within 30 days after the AGM.

Filing Annual Return

File the annual return using Form MGT-7 within 180 days from the end of the financial year. This form contains details of members and directors.

Statutory Audit

A qualified Chartered Accountant must audit the OPC’s financial statements as per Section 139 of the Companies Act.

Conduct Board Meeting

The OPC must conduct at least one Board meeting every year. This meeting can be held by the sole director, and the provisions related to quorum do not apply for OPCs.

Appointment of Auditor

The OPC must appoint an auditor to audit the accounts and issue the audit report. The rotation of auditors does not apply to OPCs.

Director KYC Compliance

Directors holding DIN as of March 31st must file Form DIR-3 KYC by September 30th of the following financial year.

Filing Form DPT-3

OPCs must file Form DPT-3 to declare deposits and particulars not considered deposits by June 30th every year.

Disclosure of Interest

Directors must disclose their interest in other entities in the first board meeting of each financial year using Form MBP-1.

Income Tax Return Filing

OPCs must file their Income Tax Return (ITR) annually, usually by July 31st. OPCs with audit requirements have a deadline of September 30th. Maintaining a valid PAN is essential for tax filing.

GST Compliance for OPCs

If registered under GST, OPCs must file regular GST returns online. Filing frequency depends on turnover:

• OPCs with turnover up to ₹5 crore file quarterly returns.
• OPCs with turnover above ₹5 crore file monthly returns.

Annual GST returns and audits are required if turnover exceeds ₹2 crore.

Documents Required for OPC Annual Compliance

• Receipts and invoices of purchases and sales
• Bank statements for all company accounts
• GST return details (if applicable)
• TDS challans and returns (if applicable)
• Balance sheet and profit & loss account
• Financial statements and director’s report
• Details of shareholders and directors

Penalties for Non-Compliance

Failure to file annual returns and financial statements on time attracts a penalty of ₹200 per day. Non-compliance with DIN KYC leads to a fine of ₹5000. Delay in filing financial statements can also lead to heavy daily fines.

Why Choose Easy My Tax for OPC Compliance?

Easy My Tax offers expert assistance with all OPC compliance requirements. We guide you through documentation, filings, audits, and KYC processes to ensure timely and accurate compliance. Our team is available to answer your queries and provide support at every step, helping you avoid penalties and keep your company active.

Easy My Tax Ledgers Platform for OPC

Our cloud-based accounting and bookkeeping software helps OPCs manage their finances and regulatory compliance efficiently. The platform can be accessed anytime and anywhere, making it easy to maintain records and file returns on time.

Start your OPC annual compliance process with Easy My Tax today for a hassle-free experience.