Annual Compliance for OPC: A Complete Guide for One Person Companies One Person Company (OPC) is one of the most popular business structures in India, especially for solo entrepreneurs who want limited liability, legal recognition, and a simple management system. However, like every registered business entity, an OPC must follow specific annual filings and regulatory obligations. These are collectively known as Annual Compliance for OPC. Ignoring these requirements can lead to penalties, loss of legal status, and unnecessary hurdles. This blog explains the complete process, due dates, documents, penalties, and also focuses on Annual Compliance for OPC in Chennai.
What Is Annual Compliance for OPC? Annual Compliance for OPC refers to the set of mandatory filings, returns, and documentation that every One Person Company must submit to the Ministry of Corporate Affairs (MCA) every financial year. This maintains transparency, legal accuracy, and the company’s active status.
Why Is Annual Compliance Important for OPC? Proper compliance increases company credibility, helps secure loans, avoids penalties, and ensures that the business stays legally protected. Regular filings also help maintain accurate financial and statutory records.
Key Annual Compliance Requirements for OPC 1. Filing of Annual Return – Form MGT-7A Every OPC must file its annual return using MGT-7A. This form contains: ● ● ● ●
Company structure Shareholder details Financial data Compliance records
Due Date: Within 60 days from the date an AGM would have been held.
2. Filing of Financial Statements – Form AOC-4
Financial statements including Balance Sheet, Profit & Loss, Auditor’s Report, and Board Report must be filed through AOC-4. Due Date: Within 180 days from the end of the financial year.
3. Appointment of Auditor – Form ADT-1 OPCs must appoint a statutory auditor within 30 days of incorporation and file Form ADT-1. The auditor continues for 5 years unless changed.
4. Income Tax Return Filing (ITR-6) Every OPC must file its Income Tax Return using ITR-6, even if no income is reported. Due Date: 31st October every year.
5. Conducting Board Meetings If the OPC has more than one director, it must conduct at least one board meeting every 6 months. If it has only one director, meetings are not mandatory.
Documents Required for Annual Compliance ● ● ● ● ● ● ●
PAN of the company Certificate of Incorporation Financial statements Bank statements Audit report DSC of director MOA & AOA
Penalties for Non-Compliance Failing to complete Annual Compliance for OPC can lead to: ● ● ● ●
Penalties starting from ₹100 per day per form Possible legal action from MCA Director disqualification Company marked as “non-compliant”
Annual Compliance for OPC in Chennai
Chennai is home to thousands of OPCs across IT, finance, consulting, e-commerce, and manufacturing sectors. To maintain a good compliance record, Annual Compliance for OPC in Chennai is essential for smooth business operations. Why Chennai-based OPCs must stay compliant: ● ● ● ●
Banks in Chennai require strict compliance for business loans Investors trust compliant companies MCA penalties can disrupt operations Helps in renewing local licenses and permits
Benefits of Completing Annual Compliance for OPC ● ● ● ● ●
Improves business credibility Helps secure bank loans Ensures legal protection Avoids penalties Maintains smooth business operations
Conclusion Annual Compliance for OPC is essential for maintaining transparency, legal protection, and business credibility. For entrepreneurs in Tamil Nadu, especially those handling Annual Compliance for OPC in Chennai, timely compliance helps avoid penalties and promotes long-term business growth. Staying compliant strengthens your company's reputation and ensures seamless operations throughout the year.
