Introduction
A One Person Company (OPC) is a corporate structure introduced under the Companies Act, 2013 that allows a single entrepreneur to operate a company with limited liability and separate legal status. Although simpler in governance compared to other forms of companies, an OPC is still subject to specific statutory financial and accounting requirements. These obligations ensure that the company maintains financial transparency, meets compliance standards, and is accountable to regulatory authorities. Proper adherence to financial year timelines and accounting requirements is essential for legal compliance, tax assessments, and overall financial discipline.

Definition and Duration of Financial Year
The financial year for an OPC, as defined under Section 2(41) of the Companies Act, 2013, is the period ending on 31st March every year. For companies incorporated between January and March, the first financial year can extend to the following March, giving them an extended financial year of up to 15 months. This uniformity in financial year aligns with the Indian tax year, facilitating synchronized filing of income tax returns and other regulatory submissions. All financial reporting, audit, and filing obligations are based on this annual timeline.

Requirement to Maintain Books of Account
As per Section 128 of the Companies Act, 2013, every OPC is required to maintain proper books of account that reflect an accurate and fair view of its financial affairs. These books must include details of all sums of money received and expended, sales and purchases of goods or services, assets and liabilities, and other matters relevant to the business. The accounts must be maintained on an accrual basis and according to the double-entry system of accounting. The records can be kept manually or in electronic form at the registered office of the company and should be accessible for inspection.

Preparation of Financial Statements
An OPC is mandated to prepare financial statements at the end of each financial year, which must include a balance sheet, profit and loss account, statement of changes in equity (if applicable), and explanatory notes. The financial statements must reflect the true financial position of the company and be prepared by Schedule III of the Companies Act and applicable accounting standards. Even though OPCs are exempt from preparing a cash flow statement, all other components of the financial statements are compulsory.

Audit of Financial Statements
An OPC must get its financial statements audited by a qualified Chartered Accountant under Section 139 of the Companies Act. The auditor must be appointed within 30 days of incorporation if the board chooses to do so, or during the first Annual General Meeting (AGM), although OPCs are exempt from holding AGMs. The auditor examines the books of account and provides an audit report, certifying that the financial statements give a true and fair view of the company’s financial status. Audit compliance is essential for filing annual returns and gaining stakeholder confidence.

Annual Filing Requirements with the Registrar
OPCs must file their annual financial statements and returns with the Registrar of Companies (RoC). The key forms include AOC-4, which captures the financial statements and audit report, and MGT-7A, which is the annual return form specifically designed for OPCs and small companies. These forms must be filed within 180 days of the close of the financial year. Accurate and timely submission of these forms is crucial to avoid penalties and legal non-compliance. Failure to file within the due date may attract monetary fines and affect the legal standing of the company.

Income Tax and Related Filings
In addition to MCA filings, OPCs are subject to the provisions of the Income Tax Act, 1961. The company must file income tax returns using Form ITR-6, unless it qualifies for exemption under presumptive taxation schemes. Income tax returns must be filed by 31st October of the assessment year if the company is subject to audit, and by 31st July otherwise. OPCs are also required to maintain tax records, deduct tax at source (TDS) where applicable, and comply with advance tax provisions based on their annual financial performance.

Preservation and Inspection of Financial Records
An OPC is required to preserve its financial records for a minimum period of eight years from the end of the financial year to which they relate. These records must be open to inspection by directors or authorized personnel. In case of investigation or legal proceedings, the records play a crucial role in demonstrating financial compliance and integrity. Maintaining properly organized financial documentation also facilitates seamless audits, investor reviews, and tax assessments.

Conclusion
The financial year and accounting requirements for a One Person Company form the backbone of its statutory and financial governance. From maintaining books of account and preparing financial statements to fulfilling audit and filing obligations, each requirement is designed to ensure transparency, accountability, and legal compliance. Even though OPCs enjoy certain exemptions, they are not free from the core financial responsibilities applicable to corporate entities. Timely and accurate compliance with these obligations safeguards the company from legal penalties, enhances credibility, and supports sustainable growth. By adhering to these financial norms, OPCs can operate effectively within India’s corporate and regulatory framework.

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