What Are the Compliance Required for OPC Private Limited Company

What Are the Compliance Required for OPC Private Limited Company


One Person Company (OPC) is a type of company registered under the Companies Act, 2013 for conducting business activities. OPCs are required to comply with the requisite annual compliances, like filing forms and returns with the Ministry of Corporate Affairs, and getting their financial statements audited by a statutory auditor. Failure to file these complaints leads to hefty penalties and fines for the company.

The annual compliances for an One Person Company include filing different forms and returns with MCA, conducting board meetings, and conducting a statutory auditor's audit of the financial statement of the company. A statutory auditor has to be appointed by the OPC within 30 days of its incorporation. The company is also required to circulate the Audited Financial Statements and other documents to all the Members.

Apart from this, the company is required to file FORM AOC-4 with the  Registrar of Companies  for filing its Audited Financial Statements. The AOC-4 form consists of the Balance Sheet, Profit and Loss Account, Audit Report, and notes to the accounts. Moreover, the OPC has to get its books of accounts audited by a Chartered Accountant every year.

The biggest advantage of an OPC is that it has a separate legal entity, making it easier for the company to avail funds from venture capital and angel investors. However, the structure limits the company in terms of expansion as it cannot attract more members or shareholders. Furthermore, the OPC is not allowed to carry out Non-Banking Financial Investment activities and cannot invest in securities of other companies.

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