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Annual Compliance for One Person Company (OPC) in Hyderabad

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Renuka M
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3 min read

Introduction

One Person Company (OPC) is a unique business structure that allows a single entrepreneur to own and manage a company with limited liability. While OPCs enjoy several benefits, they are also required to comply with annual regulatory obligations as prescribed by the Ministry of Corporate Affairs (MCA) and the Companies Act, 2013. Failing to meet these compliance requirements can result in penalties and legal consequences. This article outlines the key annual compliance requirements for OPCs in Hyderabad.

Key Annual Compliance Requirements for OPC

1. Appointment of Auditor

An OPC must appoint a qualified Chartered Accountant (CA) as its statutory auditor within 30 days of incorporation. The auditor is responsible for verifying the company’s financial records and filing audit reports with the authorities.

2. Filing of Financial Statements (AOC-4)

  • An OPC must file its financial statements with the Registrar of Companies (ROC) using Form AOC-4.

  • The financial statements include the balance sheet, profit and loss account, and other financial details.

  • The due date for filing AOC-4 is within 180 days from the end of the financial year.

3. Annual Return Filing (MGT-7A)

  • OPCs must file their annual return in Form MGT-7A.

  • This form provides details about the company’s shareholders, directors, and business activities.

  • The due date for filing MGT-7A is within 60 days from the end of the financial year.

4. Income Tax Return (ITR Filing)

  • OPCs must file their income tax return using Form ITR-6.

  • The due date for filing the ITR is July 31st for non-audited accounts and October 31st for audited accounts.

  • If turnover exceeds ₹ one crore, a tax audit is required under the Income Tax Act.

5. Director’s Report

  • The sole director of the OPC must prepare a report explaining the company’s financial status and operations.

  • This report should comply with Section 134 of the Companies Act, 2013.

6. Holding of Board Meetings

  • Although OPCs do not require multiple board meetings, at least one must be held every six months.

  • The gap between the two meetings should not exceed 180 days.

7. Declaration of Commencement of Business (INC-20A)

  • If the OPC was incorporated on or after November 2019, it must file Form INC-20A within 180 days of incorporation to declare the commencement of business.

8. Maintenance of Statutory Registers

  • OPCs must maintain records such as minutes of meetings, financial statements, register of directors, and other statutory documents.

  • These records should be updated regularly to ensure compliance with MCA norms.

9. Compliance with GST Regulations (If Applicable)

  • If the OPC is registered under GST, it must file monthly or quarterly GST returns (GSTR-1, GSTR-3B) and an annual return (GSTR-9).

  • GST returns must be filed on time to avoid penalties.

Consequences of Non-Compliance

Failing to comply with annual filing requirements can result in:

  • Monetary penalties imposed by the MCA and ROC.

  • Disqualification of the director due to continuous non-compliance.

  • Legal action against the company for regulatory breaches.

  • Additional compliance costs due to late fees and interest charges.

Conclusion

Complying with annual requirements in Hyderabad is crucial for maintaining an OPC's legal standing and credibility. Business owners should monitor deadlines and ensure timely filings to avoid penalties. Seeking professional assistance from a CA or company secretary can help streamline the compliance process and ensure adherence to regulatory obligations.

Annual Compliance For Opc in Hyderabad