Introduction
A One Person Company (OPC), though designed for ease of operation by a single entrepreneur, is still governed by the stringent provisions of the Companies Act, 2013. It enjoys certain exemptions from procedural compliances but is not exempt from penalties in case of non-compliance with statutory obligations. The law imposes specific fines and consequences for violations related to filings, disclosures, and management practices. Understanding the penalties applicable to OPCs is essential to maintaining regulatory discipline and avoiding legal consequences.

Failure to File Annual Returns and Financial Statements
Under Section 137 and Section 92 of the Companies Act, 2013, OPCs are required to file their financial statements in Form AOC-4 and annual returns in Form MGT-7A within the prescribed timelines. Delay in filing these returns attracts a penalty of ₹100 per day, per form, until the default continues. Additionally, the company and its officers in default may be liable for further penalties, which can extend up to ₹1 lakh or more, depending on the period and nature of non-compliance.

Non-appointment of Auditor
Section 139 mandates the appointment of a statutory auditor by every company. If an OPC fails to appoint or reappoint an auditor within the given timeframe, it may face penalties. The company is liable to pay a fine of up to ₹5 lakh, and the officer in default may also be penalized with imprisonment up to one year or a fine ranging between ₹10,000 and ₹1 lakh. This ensures that financial transparency is maintained through mandatory audits.

Non-maintenance of Statutory Registers and Records
An OPC is required to maintain proper statutory registers and records, such as registers of members and contracts, and minutes of board meetings. Failure to maintain these statutory documents or providing incorrect information can attract penalties under Section 128 and Section 134. The company and every officer in default may be fined up to ₹50,000, with an additional fine of ₹1,000 per day for continuing default.

Default in Holding Board Meetings
Although an OPC is exempt from holding Annual General Meetings, it must still conduct at least one board meeting in each half of the calendar year, with a gap of not less than ninety days between the meetings. Non-compliance with this provision under Section 173 can lead to penalties of ₹25,000 for every officer in default. This ensures that corporate governance standards are maintained even in single-member companies.

Violation of Conversion Rules
If the paid-up share capital of an OPC exceeds ₹50 lakh or its turnover surpasses ₹2 crore, it must convert into a private or public limited company within six months. Failure to comply with this conversion mandate under Rule 6 of the Companies (Incorporation) Rules, 2014, can result in a fine of ₹10,000 and an additional ₹1,000 for each day of default. This regulation ensures that larger businesses function under a more robust structure.

Misstatement or False Declaration
Section 448 of the Act deals with penalties for false statements made in documents, returns, or declarations. If an OPC knowingly furnishes false information or suppresses material facts, the person responsible may be punished with imprisonment up to ten years and a fine that may extend to ₹10 lakh or more. This provision aims to deter fraudulent activities and ensure truthful disclosures.

General Penalties and Compounding of Offences
Section 450 of the Act states that if a company or its officer contravenes any provision of the Act and no specific penalty is prescribed, a fine of up to ₹10,000 is imposed, with an additional ₹1,000 for each day the default continues. However, OPCs may apply for compounding of offences under Section 441, where the Registrar or Tribunal may settle the matter upon payment of fines, thereby avoiding litigation and higher penalties.

Conclusion
The Companies Act, 2013, imposes various penalties on OPCs to ensure accountability, transparency, and adherence to statutory norms. From non-filing of returns and improper maintenance of records to violation of structural rules and misstatements, the penalties are structured to promote responsible business conduct. While OPCs enjoy certain procedural exemptions, they must be diligent in meeting their legal obligations to avoid financial penalties and reputational damage. A clear understanding of these provisions helps entrepreneurs manage their businesses more lawfully and efficiently.

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