Annual Compliance – One Person Company (OPC)

Annual Compliance for a One Person Company (OPC) refers to the mandatory statutory obligations that the company must fulfill each financial year under the Companies Act, 2013. OPCs, though having a single member, are treated like private limited companies and must adhere to corporate compliance to maintain legal standing.

Key compliance requirements include filing of Annual Return (Form MGT-7) and Statement of Accounts and Solvency (Form AOC-4) with the Ministry of Corporate Affairs (MCA). The Annual Return contains details of the member, registered office, and principal business activities, while Form AOC-4 includes audited financial statements and solvency declaration. OPCs must also hold Board meetings if applicable, maintain statutory registers, and ensure proper accounting records.

Additional compliance may include Income Tax Return filing, GST registration and returns (if applicable), and professional tax or labor law obligations if employees are employed. Timely compliance is crucial to avoid penalties, late fees, and legal complications.

Engaging professional services like company secretaries or accountants can help OPCs ensure accurate filing, maintain proper records, and adhere to deadlines efficiently. Proper compliance also strengthens corporate credibility, builds trust with stakeholders, and avoids unnecessary scrutiny by regulatory authorities.

In conclusion, Annual Compliance for a One Person Company is essential for legal validity, financial transparency, regulatory adherence, and smooth operation of the business, protecting the interests of the sole member and ensuring long-term sustainability.