A One Person Company (OPC) is a unique business structure in India that enables a single person to operate a company with limited liability. While it enjoys several advantages, such as fewer regulations and easier management, an OPC still needs to follow certain annual compliance requirements under the Companies Act, 2013.

Key Annual Compliances for OPC

1. Annual Return (Form MGT-7A):
   The OPC must file its annual return within 60 days from the date of the Annual General Meeting (AGM), though holding an AGM is not mandatory for OPCs.
    

2. Financial Statements (Form AOC-4):
   The financial statements of the OPC, including the balance sheet and profit & loss account, must be filed with the Registrar of Companies (ROC) within 180 days from the end of the financial year.
    

3. Income Tax Return (ITR):
   OPCs are required to file their Income Tax Returns annually, usually by 30th September of each assessment year.
    

4. Statutory Audit:
   A Chartered Accountant must audit the books of accounts of the OPC annually, even if the turnover is low.
    

5. Board Meetings:
   Although AGMs are not required, at least one board meeting must be held in each half of the calendar year, with a minimum gap of 90 days between the two meetings.
    

6. Maintenance of Books of Accounts:
   The company must maintain proper records of its financial transactions and get them verified through an audit.

Penalties for Non-Compliance

Failing to comply with annual requirements can result in significant penalties, late fees, and potential disqualification of the director. Hence, it is important to file all documents within the due dates.

Final Thoughts

Annual Compliance for OPC is essential to ensure the smooth operation and good standing of the company. It also enhances the company’s credibility, making it easier to secure loans, attract investors, or convert into a Private Limited Company later.