Other Necessary Compliances for OPC
PAN, TAN & GST Compliance
If your OPC is engaged in taxable goods/services or exceeds the turnover threshold, it must comply with GST registration and return filing. The company also needs to obtain PAN for tax purposes and TAN for TDS (Tax Deducted at Source) if applicable. These registrations ensure proper tax deductions, returns, and compliance with GST laws.
TDS Deduction & Filing (if applicable)
If your OPC has transactions that require TDS deduction (e.g., salary, contract payments), it must comply with TDS provisions. This includes timely deduction of TDS, its deposit with the government, and the quarterly filing of TDS returns (Form 24Q, 26Q). Failure to comply can lead to penalties and interest.
Professional Tax Registration (if applicable by State)
Certain states in India, such as Maharashtra or Karnataka, require OPCs to register and pay Professional Tax. Depending on the state, this tax is paid annually or monthly, and timely filing of returns is essential to avoid penalties. Ensure your OPC meets the professional tax compliance requirements in the state of operation.
AGM (Not Mandatory for OPC)
One of the unique advantages of an OPC is its exemption from holding an Annual General Meeting (AGM), unlike other company structures. This compliance relaxation simplifies the administrative burden on OPC owners, making it a more flexible and convenient business structure. However, OPCs must still adhere to other filing requirements.
Upgradation of MCA Master Data
It is crucial for OPCs to keep their MCA Master Data updated on the Ministry of Corporate Affairs (MCA) portal. This includes the accurate listing of details such as registered office address, share capital, and directors. Regular updates ensure the company’s legal standing and compliance with government regulations.
What are the Penalties for Non-Compliance of OPC?
Failing to comply with mandatory requirements can lead to monetary penalties and legal consequences for both the OPC and its director. Here are some common penalties:
| Non-Compliance | Penalty |
| Non-filing of AOC-4 (Financial Statements) | ₹100 per day of default (no upper limit), until the form is filed. |
| Non-filing of MGT-7A (Annual Return) | ₹100 per day of default, till the date of filing (no upper limit). |
| Failure to Appoint Auditor | Company and every officer in default: Penalty up to ₹1,00,000 and ₹5,000 per day for delay. |
| Non-filing of Income Tax Return | ₹1,000 to ₹10,000 under Section 234F, depending on income slab and delay. |
| Failure to maintain statutory records | Penalty may extend up to ₹25,000. |
| Director KYC not filed (DIR-3 KYC) | DIN gets deactivated + ₹5,000 penalty for reactivation. |
Note: The Ministry of Corporate Affairs (MCA) and Income Tax Department are strict with deadlines, and repeated defaults may lead to disqualification of directors, strike-off of the company, or legal proceedings.
Conclusion
Staying compliant is crucial for the smooth functioning and credibility of a One Person Company in India. From filing annual returns to maintaining statutory records, every compliance step ensures your OPC remains legally sound and penalty free. Timely adherence to these requirements not only avoids legal consequences but also builds a strong foundation for business growth.
Suggested Read :
Benefits of One Person Company
Legal Consequences of Strike Off OPC
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