A One Person Company (OPC) is ideal for solo founders and small entrepreneurs, offering limited liability with simple compliance requirements. However, even though an OPC has fewer obligations compared to a private limited company, it must still follow strict annual compliance under the Companies Act, 2013.
This Saving Mantra guide explains the complete step-by-step annual compliance workflow, mandatory forms, timelines, and documentation to keep your OPC fully compliant and penalty-free.
1. What is OPC Annual Compliance?
OPC Annual Compliance refers to all statutory filings and regulatory tasks that an OPC must complete every financial year.
These ensure:
- Transparency in operations
- Updated records with the Registrar of Companies (ROC)
- Avoidance of penalties under Companies Act
- Smooth business functioning for banking, funding, or legal purposes
2. Step-by-Step Process for OPC Annual Compliance
Step 1: Maintain Proper Books of Accounts
Every OPC must maintain:
- Cash book
- Sales & purchase register
- Journal and ledger
- Bank statements
- Expense vouchers
- Fixed asset records
Accounts must comply with Accounting Standards issued by ICAI.
Step 2: Prepare Financial Statements
At the end of each financial year, the OPC must prepare:
- Balance Sheet
- Profit & Loss Statement
- Notes to Accounts
- Cash Flow Statement (Not mandatory for OPC, but good practice)
The financial statements must be approved by the Director.
Step 3: Auditor Appointment & Audit Requirements
An OPC must appoint a statutory auditor within 30 days of incorporation (form ADT-1), and the auditor continues for 5 years.
Annual statutory audit is compulsory for every OPC, irrespective of turnover.
Audit includes:
- Verification of books
- Checking internal controls
- Ensuring compliance with Accounting Standards
- Finalizing financial statements
- Issuing the Audit Report
Step 4: File Form AOC-4 (Filing of Financial Statements)
Form AOC-4 must be filed within 180 days from the end of the financial year.
For example:
FY 2024–25 → Due date: 27th September 2025
Attachments:
- Financial Statements
- Audit Report
- Directors’ Report
- Notes to Accounts
AOC-4 ensures that the ROC receives accurate financial data of the OPC.
Step 5: File Form MGT-7A (Annual Return for OPC)
OPCs must file an annual return in Form MGT-7A within 60 days of filing AOC-4.
MGT-7A captures:
- Shareholder details
- Director details
- Basic compliance information
- Company structure & capital details
Because an OPC has only one member, the annual return is simpler compared to other companies.
Step 6: File DIR-3 KYC for Director
The Director of an OPC must file DIR-3 KYC every year by 30th September to keep the DIN active.
Failure to file KYC leads to DIN deactivation and a penalty of ₹5,000.
Step 7: Hold Mandatory Board Meeting
Unlike private companies, an OPC is required to hold only one Board Meeting in each half of the calendar year, and the gap between the meetings should be at least 90 days.
Where the OPC has only one director, no board meeting is required, but minutes of important decisions must still be recorded.
Step 8: Maintain Statutory Registers
OPCs must maintain statutory registers, including:
- Register of Members
- Register of Directors
- Register of Charges
- Minutes Book
- Books of Accounts
These records must be preserved safely for audit and legal verification.
Step 9: Income Tax Filing
Every OPC must file its income tax return by 31st October (unless extended).
Audit under Income Tax Act may apply if turnover exceeds prescribed limits.
3. Optional / Event-Based Compliances
Depending on business transactions, additional filings may be required:
- ADT-1 for auditor appointment
- INC-22 for change in registered office
- PAS-3 for issue or allotment of shares
- DIR-6 for director detail changes
- INC-20A for commencement of business (post-incorporation)
4. Summary of Annual OPC Compliance Forms & Due Dates
| Compliance | Form | Due Date |
|---|---|---|
| Filing of Financial Statements | AOC-4 | Within 180 days of FY end |
| Annual Return | MGT-7A | Within 60 days of AOC-4 |
| Director KYC | DIR-3 KYC | 30th September |
| Income Tax Filing | ITR-5 | 31st October |
| Board Meetings | — | Minimum 1 meeting per half year |
5. Benefits of Maintaining OPC Compliance
- Avoids heavy late-filing penalties
- Builds corporate credibility
- Ensures smooth fundraising & banking processes
- Enables legal validity of business
- Maintains transparency and governance
Non-compliance may lead to penalties, prosecution, or director disqualification.
Conclusion
Annual compliance is essential for every One Person Company to maintain legal standing and business credibility. With timely filings, accurate financial statements, and professional guidance, OPCs can operate smoothly without penalties or compliance risks.
The information provided in this blog is for general informational and educational purposes only and should not be construed as legal, tax, or professional advice. While every effort has been made to ensure accuracy and compliance with the applicable provisions of the Companies Act, 2013 and related rules, laws and regulations may change over time and interpretations may vary based on specific facts and circumstances. All services are subject to applicable laws, rules, and government approvals prevailing at the time of execution.