Stay compliant, build credibility, and grow your business with confidence.
The concept of a One Person Company (OPC) was introduced under the Companies Act, 2013, fundamentally transforming India’s corporate landscape. Prior to this, under the Companies Act, 1956, a minimum of two directors and two shareholders were required to incorporate a company, which often posed a barrier for solo entrepreneurs. With the advent of OPCs, a single individual can now form a company, acting as both the sole shareholder and sole director, while still enjoying the benefits of a separate legal entity and limited liability. This flexible structure provides budding entrepreneurs, freelancers, and small business owners a streamlined pathway to formalize their business, build credibility, and limit personal risk—all without the need for partners or co-founders. By bridging the gap between a sole proprietorship and a private limited company, OPCs empower individuals to scale up their operations while enjoying corporate status and the protections that come with it.
Annual compliance is an essential aspect of running a One Person Company (OPC) under the Companies Act, 2013. Meeting these obligations goes beyond avoiding penalties—it plays a vital role in the company’s credibility and growth.
Here’s why staying compliant matters:
Annual compliance is an essential aspect of running a One Person Company (OPC) under the Companies Act, 2013. Meeting these obligations goes beyond avoiding penalties—it plays a vital role in the company's credibility and growth. Here’s why:
Meeting annual compliance requirements is more than just a legal obligation — it brings several practical benefits that support the growth and credibility of an OPC.
Below is a summarized table outlining the key annual and event-based compliance requirements for a One Person Company (OPC) under the Companies Act, 2013.
| No | Requirement | Timeline |
|---|---|---|
| 1 | Issuance of Share Certificate | Within 180 days of incorporation |
| 2 | Payment of Stamp Duty on Share Certificate | Within 30 days of issuing share certificate |
| 3 | Board Meeting Requirement | Minimum 2 board meetings per year, with at least one in each half of the calendar year with a minimum gap of 90 days between them |
| 4 | Annual General Meeting (AGM) | Not applicable – OPCs are exempt from holding an AGM |
| 5 | Director Disclosure of Interest (Form MBP-1) | In the first Board Meeting or whenever there is a change |
| 6 | Statutory Registers & Records | Ongoing – must be updated and maintained regularly |
| 7 | Filing Form AOC-4 (Financial Statement) | Within 180 days from the end of the financial year (March 31) |
| 8 | Filing Income Tax Return (ITR) | By September 30 of each financial year |
| 9 | Filing Form MGT-7A (Annual Return) | Within 180 days from the end of the financial year (March 31) |
| 10 | Filing Form ADT-1 (Auditor Appointment/Change) | By September in every financial year |
| 11 | Appointment or Renewal of Auditor | File Form ADT-1 for appointment or auditor for a term of 5 years |
| 12 | Filing MSME Return (if applicable) | File in April for half-year period October 1–March 31; file in October for half-year period April 1–September 30 |
| 13 | Other Event-Based Compliance | As applicable (e.g., increases in authorized capital, change in directorships, filing event-based forms, etc.) |
Once your One Person Company (OPC) is incorporated, it’s important to have the proper corporate stationery in place to comply with statutory requirements and conduct business professionally.
After incorporating your One Person Company (OPC), fulfilling various statutory obligations is crucial to keep your business legally compliant and penalty-free. Below is an easy-to-understand guide covering post-incorporation essentials, ongoing annual compliance, and important forms & timelines.