Introduction
A One Person Company (OPC), though formed by a single individual, is a recognized corporate entity under the Companies Act, 2013, and is subject to statutory scrutiny like any other company. The Registrar of Companies (RoC), operating under the Ministry of Corporate Affairs (MCA), is the authority responsible for regulating and overseeing compliance of companies in India. The Registrar holds extensive powers under the Act to inspect the books of accounts, statutory registers, and other records of companies, including OPCs. These powers are primarily aimed at ensuring that the company adheres to legal requirements, maintains transparency in operations, and does not engage in fraudulent or non-compliant activities. Understanding the scope and process of the Registrar’s inspection powers is essential for OPCs to remain compliant and avoid regulatory penalties.

Statutory Basis for Inspection Powers
The power of the Registrar to inspect company records is rooted in Sections 206 to 209 of the Companies Act, 2013. Section 206 empowers the Registrar to call for information, inspect documents, and conduct inquiries if it believes that the business is not being conducted by the law or that circumstances warrant a detailed investigation. This authority applies to all forms of companies, including OPCs. The Registrar can exercise this power either on receiving a complaint, based on internal risk assessments, or on their motion when irregularities are suspected.

Right to Call for Information and Records
Under Section 206(1), the Registrar may require the OPC to furnish information or explanations regarding its affairs within a specified time. This could relate to financial statements, shareholding patterns, statutory registers, resolutions, or any other operational matter. If the company fails to provide satisfactory responses or ignores the request, the Registrar can escalate the matter under Section 206(3) and initiate formal inspection proceedings. The company is duty-bound to comply with such requisitions, and refusal may result in penalties or further investigation.

Conduct of Physical and Digital Inspection
When the Registrar decides to carry out an inspection under Section 206(3) or 207, an authorized officer may be appointed to visit the registered office of the OPC. The inspection may involve examination of books of accounts, statutory registers, minutes of board meetings, resolutions, agreements, audit reports, and correspondence. In the digital age, many inspections are also conducted through electronic submissions, where the Registrar may demand scanned copies of records or access to cloud-based storage systems maintained by the OPC. During the inspection, the company and its officers are legally obligated to cooperate and facilitate the process.

Powers During Inspection and Recording of Findings
The inspecting officer has the authority to take extracts or copies of documents, ask for oral explanations, and record statements of responsible officers. They can also seize documents if they believe they may be tampered with or hidden. The findings of the inspection are documented in an inspection report, which is submitted to the Registrar. If the report highlights violations, mismanagement, or fraudulent activities, the Registrar may recommend further action, including penalties, prosecution, or even ordering an investigation under Section 210 or action for removal of disqualified directors.

Rights and Duties of the OPC During Inspection
The OPC is expected to provide access to all relevant records during inspection and ensure that books are kept in the prescribed manner as outlined in Section 128 of the Companies Act. The director and company secretary, if appointed, must be available to respond to queries and assist the inspecting officer. The company also has the right to be informed about the nature of the inspection and must be provided with copies of any adverse findings. The cooperation of the company during inspection plays a significant role in determining the severity of action that may follow.

Consequences of Non-Compliance or Obstruction
Non-compliance with the Registrar’s directions or obstruction of the inspection process is viewed seriously under the Companies Act. Section 207(4) prescribes penalties for such behavior, which can include fines on the company and its officers and prosecution in serious cases. If the Registrar finds evidence of financial misstatements, suppression of facts, or contravention of statutory provisions, the matter can be referred for investigation by the Serious Fraud Investigation Office (SFIO) or other regulatory agencies. In extreme cases, the company’s name may be struck off, or the director may be disqualified.

Inspection Outcomes and Follow-Up Actions
Based on the inspection findings, the Registrar may issue show-cause notices to the company and its officers seeking an explanation for the violations observed. Depending on the response and seriousness of the issue, the Registrar may impose monetary penalties, direct the company to rectify errors, or initiate legal proceedings. If no violations are found, the inspection is closed with a formal record. In either case, the inspection findings become part of the company’s compliance history and may be considered in future evaluations, approvals, or investigations.

Conclusion
The Registrar’s power to inspect OPC records is a critical mechanism for enforcing corporate governance and ensuring that even single-member companies operate within the legal framework. These powers are preventive and corrective, designed to identify lapses, rectify non-compliance, and uphold the credibility of the corporate structure. For OPCs, timely and accurate record maintenance, transparent financial reporting, and proactive cooperation during inspection are essential practices. Awareness of the Registrar’s powers and the firm’s responsibilities enables better preparedness, minimizes legal exposure, and supports a compliant and ethically managed business environment.

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