OPC Compliance

OPCs must hold a minimum of 2 board meetings in a year with at least one meeting in each half-year and gap not less than 90 days between meetings. They must file Form AOC-4 (financial statements) within 30 days of AGM, Form MGT-7 (annual return) within 60 days of AGM, and comply with income tax and GST regulations.

No, OPCs are exempt from holding Annual General Meetings as there is only one shareholder. The sole member can pass resolutions by entering them in the minute book, signed and dated. This reduces compliance burden significantly.

OPCs enjoy exemptions including no requirement for AGM, relaxed quorum requirements for board meetings, no need for cash flow statements in financial statements, and the sole member can nominate a successor ensuring business continuity. However, they have similar filing requirements for annual returns and financial statements.

An OPC must mandatorily convert into a private limited company if its paid-up capital exceeds ₹50 lakh or its average annual turnover exceeds ₹2 crore for three consecutive years. Voluntary conversion is permitted after two years from incorporation.

Form INC-20A is the declaration of commencement of business filed within 180 days of incorporation, confirming that subscribers have paid for shares and the company has a bank account. Non-filing attracts penalties and restrictions on business operations.

Penalties include ₹1,000 per day for late filing of annual returns (no maximum), disqualification of the sole director, inability to file subsequent forms, prosecution, and potential striking off of the company. The sole member is personally liable for compliance defaults.

Yes, while an OPC can have only one member/shareholder, it can have up to 15 directors. This allows for professional management and expertise while maintaining single ownership structure.

The nominee becomes a member if the sole member becomes incapacitated or passes away. The nominee must give consent at incorporation and can be changed by the member. The nominee's details must be updated in case of changes.

Yes, OPCs must maintain registers of members, directors, charges, and contracts like other companies. However, the register of members is simpler as there is only one member. These registers must be kept at the registered office.

If paid-up capital exceeds ₹50 lakh or turnover exceeds ₹2 crore for three consecutive years, the OPC must file Form INC-6 for conversion to private limited company within 6 months. Non-compliance may result in penalties and legal consequences.