OPC Compliance Services

Q: Is an OPC required to hold board meetings?

OPC with one director: exempt from formal board meetings — sole director passes resolutions and enters them in minutes within 30 days. OPCs are fully exempt from AGM requirement. OPCs with multiple directors must hold at least one meeting per half-year with minimum 90-day gap.

Q: What is the difference between MGT-7 and MGT-7A?

MGT-7 is the full annual return for most companies, filed within 60 days of AGM. MGT-7A is the simplified form for OPCs and small companies, filed within 60 days of financial year end. Fewer disclosures, no AGM reference.

Q: Is a statutory audit mandatory for an OPC even with low turnover?

Yes. Every OPC must have its accounts audited regardless of turnover. Auditor must be appointed within 30 days of first board meeting (within 30 days of incorporation). ADT-1 must be filed within 15 days of appointment.

Q: When must an OPC mandatorily convert to a private limited company?

Mandatory when paid-up capital exceeds ₹50 lakh or average annual turnover exceeds ₹2 crore. Must convert within 6 months. Voluntary conversion available after 2 years of incorporation via Form INC-27.

Q: What is Form INC-20A and when must it be filed by an OPC?

Declaration for Commencement of Business filed within 180 days of incorporation certifying subscribers have paid for their shares. Non-filing attracts ₹50,000 penalty on the OPC and ₹1,000 per day on the sole director.

Complete Annual and Event-Based Compliance for One Person Companies Under the Companies Act, 2013

A One Person Company (OPC) enjoys several compliance relaxations compared to a regular private limited company — it is exempt from holding an AGM, can have a single director sign minutes, and files a simplified annual return in Form MGT-7A. However, OPCs are still required to complete statutory audit, file financial statements (AOC-4), maintain statutory registers, and comply with all event-based filing obligations under the Companies Act, 2013.

OPC compliance is often underestimated — many solo entrepreneurs assume their company has minimal obligations, only to face penalties for missed filings or director KYC lapses. Our OPC compliance service covers the complete annual compliance calendar and all event-based filings. This connects with our annual filings, compliance services, and DIN related forms services.

Our OPC Compliance Services

Statutory Audit Coordination

Coordinating the mandatory statutory audit for the OPC — every OPC must have its accounts audited regardless of turnover, and the auditor must be appointed within 30 days of incorporation.

AOC-4 Financial Statement Filing

Filing the OPC's audited financial statements in Form AOC-4 within 180 days of the end of the financial year — a relaxed deadline specific to OPCs (vs 30 days post-AGM for regular companies).

MGT-7A Annual Return Filing

Filing the simplified annual return in Form MGT-7A (for OPCs and small companies) within 60 days of the end of the financial year — replacing the full MGT-7 form required for larger companies.

DIR-3 KYC Annual Filing

Filing DIR-3 KYC annually by 30 September to keep the sole director's DIN active — deactivation of the DIN would prevent the OPC from completing any MCA filings.

ADT-1 Auditor Appointment

Filing ADT-1 within 15 days of appointment of the statutory auditor — mandatory for all companies including OPCs, filed within 30 days of the first board meeting after incorporation.

INC-4 Nominee Changes

Filing INC-4 for any changes in the OPC's nominee — including voluntary nominee changes and succession filings where the member has died or become incapacitated.

OPC Compliance — Key Deadlines

AOC-4 (financial statements) — within 180 days of the end of the financial year (by 27 September for March year-end OPCs)
MGT-7A (annual return) — within 60 days of the end of the financial year (by 29 May for March year-end OPCs)
ADT-1 (auditor appointment) — within 15 days of the first board meeting (within 30 days of incorporation)
DIR-3 KYC — annually by 30 September for the sole director
INC-20A (commencement of business) — within 180 days of incorporation
INC-4 (nominee change) — within 30 days of any change in nominee or member
OPCs are exempt from AGM but must still hold board meetings and maintain statutory registers

Frequently Asked Questions

Is an OPC required to hold board meetings?

An OPC with only one director is exempt from the requirement to hold formal board meetings — the sole director can pass resolutions and enter them in the minutes book with their signature within 30 days of the decision. However, if an OPC has more than one director, it must hold at least one board meeting in each half of the calendar year, with a minimum gap of 90 days between the two meetings. OPCs are fully exempt from the AGM requirement regardless of the number of directors.

What is the difference between MGT-7 and MGT-7A?

MGT-7 is the full annual return form required for most private and public limited companies — filed within 60 days of the AGM. MGT-7A is a simplified annual return form introduced for OPCs and small companies — it contains fewer disclosures and must be filed within 60 days of the end of the financial year (not the AGM, since OPCs don't hold AGMs). MGT-7A was introduced to reduce the compliance burden for smaller entities without compromising transparency.

Is a statutory audit mandatory for an OPC even with low turnover?

Yes. Unlike proprietorships and partnerships where audit is triggered only above the Section 44AB turnover threshold, every OPC — regardless of its turnover or profit — must have its accounts audited by a Chartered Accountant and file audited financial statements in AOC-4. The auditor must be appointed within 30 days of the first board meeting (within 30 days of incorporation) and ADT-1 must be filed within 15 days of the appointment.

When must an OPC mandatorily convert to a private limited company?

An OPC must convert to a private limited company if its paid-up capital exceeds ₹50 lakh or its average annual turnover for the immediately preceding three financial years exceeds ₹2 crore. The conversion must be completed within 6 months of crossing these thresholds. The OPC can also voluntarily convert to a private limited company after 2 years from the date of its incorporation — by adding at least one more director and shareholder and filing Form INC-27.

What is Form INC-20A and when must it be filed by an OPC?

Form INC-20A is the Declaration for Commencement of Business that must be filed by every company with share capital — including OPCs — before commencing business operations or exercising borrowing powers. It must be filed within 180 days of the date of incorporation and certifies that every subscriber has paid the amount due on their shares. Failure to file INC-20A within 180 days results in a penalty of ₹50,000 on the OPC and ₹1,000 per day on the sole director for each day of continuing default.