Mandatory Compliances For a One Person Company (OPC)

10 May 2018

The Introduction of OPC model has encouraged corporatization of micro businesses and entrepreneurship with a simpler legal regime so that the entrepreneur is not compelled to devote considerable time, energy and resources on legal compliances.

FY: Financial year i.e. from 1st April of one year to 31st March of the consequent year

Requirement Explanation Timeline
Registered Office OPC must have registered office capable of receiving communication Within 30 days of Incorporation in case details are not submitted during Incorporation.
Company Merchandise The word OPC shall be mentioned in brackets below the name of such company wherever its name is printed, affixed or engraved -
MOA The name of the nominee should be included in the MOA -
Board Meetings (BM) OPC shall be deemed to have complied with the section 173 of Companies Act,2013 for board meetings if at least one meeting has been conducted in each half of the calendar year. The gap between two meetings shall not be less than 90 days -
Annual General Meetings (AGM) No need to conduct Annual General Meeting -
Auditor Appointment An Auditor must be mandatorily appointed by the OPC Within 30 days of Incorporation
Annual Filing - Financial Statements including Balance Sheet and P&L in Form AOC-4

- Annual return of the Company is Form MGT-7A

- Within 30 days  calculated from the date on which the AGM should have been held.
- Within 60 days  calculated from the date on which the AGM should have been held.

FAQs about Mandatory Compliances for OPCs

Q: What are the compliances for one person company?

A: One Person Company (OPC) must comply with various rules and regulations set under the Companies Act, 2013, which includes filing of annual returns, financial statements, etc. OPC annual compliance is necessary to ensure that the company is adhering to all legal and regulatory requirements. An OPC Compliance checklist can also help in meeting all these requirements.

Q: What are the mandatory requirements of an One Person Company (OPC)?

A: The mandatory requirements for an OPC include having a single shareholder and director. The company also needs to appoint a nominee in case the single director is unable to function. 

Q: What are the eligibility requirements for a member to form One Person Company (OPC)?

A: Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. Further, person can be a member in only one OPC, however, can be a nominee in one other OPC.

Q: Is audit mandatory for one person company?

A: Yes, audit is mandatory for all types of companies including OPC.

Q: What is the compliance cost for a one person company?

A: The compliance cost for OPC depends on various factors such as the size of the company and the services of a professional being hired for compliance services. It is recommended to get in touch with a professional to get an estimate of the compliance cost for OPC.

Q: What is legal compliance for an OPC company?

A: The legal compliance for OPC  includes various compliances such as annual filings, compliance with GST, income tax, etc., which are necessary to ensure compliance with all legal and regulatory requirements.

Q: Does OPC need to appoint an auditor?

A: Yes, OPC is required to appoint an auditor as per the Companies Act.

Q: What documents are required for annual filing of OPC?

A: The documents required for annual filing of OPC include financial statements, auditor’s report, board report, etc., which are essential for meeting all legal and regulatory requirements for OPC.

Q: Is AGM mandatory for OPC?

A: No, It is not mandatory for OPC to hold an Annual General Meeting (AGM). 

Q: What is the validity of OPC?

A: The validity of OPC is perpetual, as per the Companies Act. However, complying with OPC annual compliance is still necessary to ensure the continuous operation and legality of the company.

Q. What are the timelines for filing MGT-7A and AOC-4 forms?

A: An OPC must file MGT-7A and AOC-4 forms within a period of 60 days and 30 days respectively from the date on which the last AGM was held. In case that an AGM is not held at the due date, the OPC must file the MGT-7A and AOC-4 forms within 60 days and 30 days respectively, calculated from the date on which the AGM should have been held.

The content of this article is for information purpose only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the Author / Treelife is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof.

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- Senior Associate | Legal

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