OPC Compliance After Incorporation in India

Annual Compliance for OPC

1. Form MGT-7A

One Person Companies and small companies use Form MGT-7A to file their annual return. They must submit it within 60 days of the AGM due date, even if they don’t hold the AGM. This form provides key company details such as the shareholding pattern, director information, and compliance status. By filing MGT-7A, companies maintain good standing with the Ministry of Corporate Affairs (MCA).

2. Form AOC-4

An OPC files its audited financial statements with the Registrar of Companies using Form AOC-4. The form includes critical financial documents such as the balance sheet, profit and loss account, notes to accounts, and the auditor’s report. The OPC must submit the form within 180 days from the end of the financial year. Filing AOC-4 on time demonstrates transparency and compliance with financial reporting requirements.

3. Income Tax Return

An OPC is required to file its Income Tax Return annually using Form ITR-6. This filing includes details of income, expenses, tax computation, and other financial disclosures. The due date for filing is 31st October if the OPC is subject to audit. Filing ITR is a legal obligation and helps avoid penalties and scrutiny from the Income Tax Department.

4. DIR-3 KYC

DIR-3 KYC is a mandatory compliance for every director of an OPC to update their personal and contact details with the MCA. It must be filed annually before 30th September. Non-compliance may result in the deactivation of the Director Identification Number (DIN), restricting the director from performing company-related functions. This filing ensures that director records remain current and accurate in government databases.

5. MSME Form I (if applicable)

An OPC must file MSME Form I if it owes outstanding payments to Micro or Small Enterprises for more than 45 days. The company files this form twice a year once in April for the October–March period, and once in October for the April – September period. This process promotes accountability and ensures timely payment to MSME suppliers. If applicable, the MSME Development Act, 2006, makes this filing mandatory.

Event-Based Compliances of One Person Company

• Change in Registered Office: File Form INC-22 within 15 days of changing the registered office address. It ensures that the ROC has updated location details of your OPC.
• Change in Director or KMP: You must file Form DIR-12 within 30 days of appointing or resigning a Director or KMP to keep your company’s leadership records accurate and compliant.
• Increase in Authorized Share Capital: File Form SH-7 to increase authorized capital before issuing more shares. You must submit it within 30 days of passing the resolution.
• Allotment of Shares: The company files Form PAS-3 within 15 days of share allotment to report new share issuance. It helps update the company’s shareholding with the ROC.
• Change in Name of OPC: You file Form INC-24 after obtaining name approval to legally change the company’s name. You must support it with a board resolution and the altered MOA.

Additional Compliances of OPC

1. Maintenance of Minutes Book

Each OPC must maintain a minutes book to record the proceedings of board meetings and key company resolutions. Even if only one director manages the OPC, they must still document written decisions. These records serve as legal proof of the company’s decisions. Maintaining them properly ensures transparency and supports compliance during regulatory inspections.

2. Maintenance of Financial and Statutory Records

An OPC must maintain proper books of accounts, statutory registers, and other financial records at its registered office. These include the register of members, share certificates, financial statements, and compliance related documents. These records are essential during audits and help ensure compliance with the Companies Act, 2013. Failure to maintain them can lead to penalties and legal complications.

3. GST Return Filing (if registered)

If the OPC is registered under GST, it must file monthly or quarterly GST returns like GSTR-1 and GSTR-3B. These returns declare outward and inward supplies, input tax credit, and tax liabilities. Timely filing avoids interest, penalties, and cancellation of GST registration. It’s crucial for maintaining tax compliance and smooth business operations.

4. TDS Return Filing (if applicable)

When an OPC deducts Tax Deducted at Source (TDS), it must file quarterly TDS returns such as Form 26Q. These returns reflect the amount of TDS deducted and deposited against payments like salaries, rent, or professional fees. Timely filing ensures deductees get credit for TDS in their income tax filings and helps the company avoid notices and penalties.

Consequences for Non-compliance of OPC

• A penalty of ₹100 per day per form is levied for late filing.
• The director may face disqualification after three consecutive years of non-filing.
• Additional government fees apply along with the regular filing fee.
• The company’s credibility and legal standing can adversely affect them.
• The ROC may initiate legal action or prosecution.
• The ROC may strike off the OPC for prolonged non compliance.

Conclusion

Complying with the mandatory, annual, event based, and additional requirements after OPC incorporation is essential to ensure smooth business operations and avoid legal trouble. While an OPC enjoys relaxed compliance compared to other companies, it is still bound by several regulatory filings and record keeping obligations. Staying updated with due dates, maintaining accurate records, and timely filing of forms helps preserve the company’s good standing with authorities. Regular compliance not only prevents penalties but also builds trust with stakeholders and ensures long term business sustainability.

Suggested Read :

OPC Turnover Limit for Small Businesses

AGM Provisions for OPC

Benefits of One Person Company

Role of a Nominee In OPC

Form MGT 7A for OPC

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