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Annual Compliance for One Person Company (OPC) in Kerala

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Renuka M
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3 min read

Introduction

One Person Company (OPC) is a popular business structure for solo entrepreneurs who want the benefits of a private limited company with minimal compliance requirements. However, like any registered business, an OPC in Kerala must comply with various statutory obligations to ensure smooth operations and avoid penalties. This article provides a comprehensive guide to the annual compliance requirements for an OPC in Kerala.

Key Annual Compliance Requirements for OPC in Kerala

1. Annual Return Filing (MGT-7A)

  • Every OPC must file its annual return with the Registrar of Companies (ROC) in Form MGT-7A.

  • The return should include details about the company's structure, director, and shareholding.

  • The due date for filing MGT-7A is 60 days after the end of the financial year, i.e., by May 30 each year.

2. Financial Statement Filing (AOC-4)

  • The financial statements of an OPC, including the balance sheet and profit & loss account, must be filed in Form AOC-4.

  • The director must sign the financial statements before submission.

  • The due date for filing AOC-4 is 180 days after the end of the financial year, i.e., by September 30 each year.

3. Income Tax Return (ITR-6)

  • An OPC must file its income tax return in Form ITR-6.

  • The due date for filing the income tax return is July 31 if a tax audit is not required and October 31 if a tax audit is applicable.

4. Statutory Audit by Chartered Accountant

  • An OPC must appoint a Chartered Accountant (CA) to audit its financial statements.

  • The audit report should be prepared and submitted along with AOC-4.

5. Director's Report

  • The sole director of the OPC must prepare a Director’s Report detailing the company's financial and operational activities for the year.

  • This report should be attached to the financial statements when filing AOC-4.

6. Board Meetings

  • An OPC is not required to hold multiple board meetings, as is the case for private limited companies.

  • However, at least one board meeting must be conducted in each half of the financial year, with a minimum gap of 90 days between two sessions.

7. GST Return Filing (If Applicable)

  • If the OPC is registered under GST, it must file monthly, quarterly, and annual GST returns as applicable.

  • Monthly and quarterly GST filings include GSTR-1, GSTR-3B, and GSTR-9 (annual return).

8. TDS Return Filing (If Applicable)

  • If the OPC is deducting tax at Source (TDS), it must file quarterly TDS returns in Form 24Q/26Q.

  • The due dates for TDS filing are April 30, July 31, October 31, and January 31.

9. Compliance with RBI Regulations (If Foreign Investment is Involved)

  • If the OPC has received foreign direct investment (FDI), it must comply with RBI regulations by filing the relevant reports such as FC-GPR and FLA Return.

Penalties for Non-Compliance

Failing to comply with annual filing requirements may result in penalties:

  • Late filing of MGT-7A & AOC-4: Penalty of ₹100 per day until the compliance is met.

  • Income tax return delay: Late filing fee of ₹1,000 to ₹10,000, depending on the delay.

  • GST non-compliance: Late fees and interest charges.

Conclusion

Ensuring timely compliance is crucial for the smooth functioning of an OPC in Kerala. Non-compliance can lead to penalties and legal complications. To maintain regulatory compliance, business owners should keep track of deadlines and seek professional assistance if needed.

Annual Compliance For Opc in Kerala