One-person Companies (OPCs) have become an increasingly popular business structure in India, especially among solo entrepreneurs and startups. They allow a single individual to enjoy the benefits of a private limited company while maintaining full control. However, OPCs are also bound by certain legal obligations like all registered companies. One of the most critical responsibilities is fulfilling the Annual Compliance For OPCs, ensuring the business remains legally sound and transparent.
What is Annual Compliance?
Annual compliance refers to the mandatory filings and regulations that a company must follow every financial year. For OPCs, these compliances are relatively simpler compared to private limited companies but still crucial. These filings are essential for maintaining good standing with the Ministry of Corporate Affairs (MCA) and avoiding penalties.
Why is Annual Compliance Important?
Fulfilling the Annual Compliance For OPC has several benefits:
Legal Validity: Ensures the company remains legally active and recognized.
Avoids Penalties: Non-compliance leads to hefty fines and legal actions.
Business Reputation: Enhances the credibility of your company with clients and investors.
Smooth Business Operations: Keeps the financial and legal affairs of the company in order.
Key Annual Compliances for OPC in 2025
Here are the major annual compliances that every OPC must follow:
1. Annual Return (Form MGT-7A)
OPCs need to file an annual return with the ROC (Registrar of Companies) within 60 days of holding the AGM. Since OPCs are exempted from holding an Annual General Meeting, the due date is counted from the date of closing of the financial year (i.e., 31st March).
2. Financial Statements (Form AOC-4)
Every OPC must file its financial statements with the ROC within 180 days from the end of the financial year. This includes the balance sheet, profit and loss account, and auditor’s report.
3. Income Tax Return (ITR-6)
The OPC must file its income tax return on or before the due date specified under the Income Tax Act, typically the 30th of September of the assessment year.
4. Statutory Audit
Even though an OPC has a single owner, it is mandatory to get the books of accounts audited by a Chartered Accountant. The audit ensures financial accuracy and compliance.
5. Director KYC (DIR-3 KYC)
The Director of the OPC must submit their KYC details annually by filing Form DIR-3 KYC to avoid disqualification.
6. Board Meetings
Though OPCs are exempt from holding multiple board meetings, at least one board meeting must be conducted every six months, and the gap between two meetings should not exceed 180 days.
Consequences of Non-Compliance
Failure to adhere to annual compliance requirements can result in:
Late fees and penalties start from ₹100 per day per form.
Disqualification of the Director.
The company being marked as inactive or struck off by the ROC.
Difficulty in obtaining loans, tenders, or business collaborations.
How to Ensure Compliance?
Here are some simple ways to stay compliant:
Hire a Professional: Engage a Chartered Accountant or a Company Secretary for timely compliance.
Use Compliance Tools: Many legal tech platforms offer automated reminders and filing services.
Stay Updated: Follow MCA announcements and tax updates to keep track of changing deadlines or requirements.
Final Thoughts
Staying compliant isn’t just about avoiding penalties—it’s about building a credible, transparent, and sustainable business. If you’re running an OPC, make sure you understand and meet your legal duties promptly. The Annual Compliance For OPC is not just a legal necessity but also a strong foundation for long-term success. By staying proactive and informed, you can ensure that your business continues to grow with integrity and trust.