Get Free Expert Consultation
Get Free Expert Consultation
Are you running an OPC business structure? If yes, it’s crucial to adhere to the Annual Compliances of One Person Company to ensure smooth operations and maintain legal compliance.
A One-Person Company (OPC) is a unique business entity wholly owned and managed by a single individual holding 100% of the shares. Defined under Section 2(62) of the Companies Act, 2013, OPCs are always registered as Private Limited Companies and must comply with the same legal provisions.
OPCs have become increasingly popular among solo entrepreneurs who seek the benefits of running a business with a single member. This business structure offers significant advantages, including limited liability and a separate legal entity, providing security and operational efficiency for the owner. By choosing OPC, entrepreneurs can enjoy these benefits while maintaining complete control over their business operations.
Let Corpbiz experts reduce your stress in the path of meeting annual compliances of one person company.
A One-Person Company (OPC) is a business entity with a single individual as its member and sole shareholder. OPC registration is typically chosen when there is only one promoter or member managing the business. Entrepreneurs often prefer OPC registration over sole proprietorship due to its distinct advantages, such as limited liability, a separate legal entity, and increased business credibility.
However, once registered, it is crucial to adhere to the Annual Compliances of One Person Company to ensure the business remains legally compliant and operates smoothly. These compliance requirements not only help maintain the company's good standing but also protect it from legal penalties and liabilities.
The benefits of annual compliances for One Person company are as follows:
Meeting the Annual Compliances of One Person Company boosts investor confidence and simplifies raising funds from financial investors by ensuring regulatory adherence.
Regularly meeting the annual return for One Person Company facilitates the company’s active status.
Meeting the requirements of annual compliances of one person company ensures that the data collected for annual compliance are accurate and true.
Failure to comply with OPC annual compliance often results in hefty legal penalties and fines. Thus, regular compliance prevents such potential hefty penalties.
Complying with all the necessary compliances and regulations related to Companies Act, Income Tax, and GST etc demonstrates transparency and good governance.
Unlike other company structures, OPCs benefit from fewer compliance requirements. The Companies Act, 2013 provides exemptions for certain tasks, reducing the administrative burden on directors and simplifying operations.
Setting up an OPC is relatively easy and simple, it requires only a director (who can also be a nominee) and a minimum authorized capital of Rs.1 lakh, with no mandatory paid-up capital requirement.
Have a look at the significant importance of annual compliances for OPC-
The following documents are required for the annual compliances of one person company:
Have a look at the requirements of mandatory annual compliances for one person company-
Conduct Board Meeting
As per Section 173 of the Companies Act, 2013, an OPC must hold at least two board meetings each year, with a gap of at least 90 days between them.
Note: Sections 173 and 174 (Quorum of Meeting of Board of Directors) do not apply to OPCs with a single director.
Appointment of Auditor
Under annual compliances of one person company, As per Section 139 of the Companies Act, 2013, an OPC must appoint a Chartered Accountant to audit its accounts and issue an audit report.
Note: The auditor rotation provision does not apply to OPCs.
Filing of Annual Return for OPC
Every One-Person Company must file its Annual Return within 180 days from the end of the financial year, including details about its members/shareholders and directors. It is done by submitting Form MGT-7 within the specified timeline.
Financial Statement
The company must file its Financial Statements, including the Balance Sheet, Statement of Profit and Loss, and Director’s Report, using Form AOC-4 within 180 days from the end of the financial year.
Disclosure of Interest in Other Entities
In every financial year, the directors of an OPC must disclose their interest in other entities during the first Board meeting using Form MBP-1, and failure to comply may result in imprisonment for up to one year.
Form DPT-3 Filing
Under annual compliances of one person company, Form DPT-3 must be filed every year on or before 30th June, reporting the return of deposits and details of amounts that are not considered deposits as of 31st March.
Penalty for OPC Non-Compliance
Failure to comply with the Annual Return for OPC can lead to a late fee of INR 200 per day, and for DIN KYC, it is INR 5000.
Preparing for OPC Non-Compliance
As per Section 88 of the Companies Act, 2013, a One-Person Company must maintain statutory registers. Additionally, there are event-based compliances that OPCs must follow, including the transfer of shares, appointment or resignation of directors, change in nominee or bank signatories, and change in auditor.
Income Tax Filing
Each OPC enlisted in India needed to file an ITR, Income Tax Filing is one of the vital annual compliances of one person company.
GST Filing for OPC
OPCs registered under Goods and Services Tax (GST) must file regular returns to comply with GST laws. OPCs with an annual turnover of up to ₹5 crores must file quarterly returns, while those with a turnover exceeding ₹5 crores are required to file monthly returns.
The tax implications of annual return for OPC are mentioned below-
Income tax must be filed on a yearly basis, i.e. July 31st for companies that don’t need accounts reviewed and September 30th for companies that need an audit.
OPCs must receive GST registration to collect and pay GST on their sales, such as OPC yearly income above Rs.20 lakh (Rs 10 lakh for special category states).
Other tax liabilities include TDS on payments such as salary, rent, professional fees, etc.
The key features of one person company are as follows:
The key points of income tax filing and GST filing for OPC are as follows:
The key differences between sole proprietorship and OPC are as follows:
| S. No. | Particulars | Sole Proprietorship | OPC |
|---|---|---|---|
| 1 | Registration | No mandatory registration | Should be registered under Companies Act, 2013 |
| 2 | Legal Status | No separate legal status | Separate legal status |
| 3 | Members liability | Unlimited liability | Limited liability |
| 4 | Nominee | Nominee not required | Minimum one nominee required |
| 5 | Directors | Directors not required | Minimum one director required |
| 6 | Foreign Ownership | Not allowed | Allowed when one is the director and the other is nominee (both cannot be foreign citizens) |
| 7 | Transferability | Cannot be transferred | Can be transferred to the nominee |
After the registration of the entity as a one person company (OPC), the given below list of corporate stationery is advisable as a part of annual compliances for OPC:
Our experts at Corpbiz have more than 10 years of experience in meeting the requirements of annual compliances for OPCs.
Meeting the needs of annual compliances for one person companies can be time consuming. We helped them in saving their time.
We know the complexities involved in documentation. Thus, we ensure zero-stress documentation for filing of annual return for OPC.
Our services deliver value at competitive prices, ensuring up to 50% cost savings compared to traditional approaches.
We handle all annual compliances of one person company, helping you avoid penalties and ensuring smooth operations.
With 24/7 assistance, our experts are always available to resolve your queries quickly to meet the needs of annual compliance for OPCs.
Legal Researcher
Written by Neha Dawra. Last updated on Jun 1 2026, 01:28 PM
Neha Dawra has 4+ years of experience in legal research and intellectual property advisory. Her expertise lies in analyzing IP laws, drafting structured legal content, and simplifying complex registration procedures into clear, simple insights.
Trusted by thousands of businesses across India for seamless compliance, registrations, and advisory services.
Really thankful to Corpbiz. Our experience with its expert was tremendous. Strong professional approach towards clients. My Company Registration was filed in a very less time, thanks to Corpbiz experts.
We would recommend Corpbiz incorporation services to any founder without a second doubt. The process was beyond efficient and shows Corpbiz founder's commitment and vision to truly help entrepreneurs and early stage startups to get them incorporated with ease.
I was searching for a company for assistance in the incorporation services. Then one of my friend tell me about Corpbiz and definitely the Corpbiz team is really efficient and has an experienced staff to guide us through the entire process of Company Incorporation.
Setting up our Bio Medical Waste Recycling Plant was a huge project. Mukul managed the entire compliance framework seamlessly from start to finish.
Corpbiz is very reliable and efficient. They managed all paperwork, resolved my queries, and completed my GST registration much quicker than I expected.