Corporate Tax Structure An OPC is treated as a separate legal entity and taxed as a domestic company under the Income Tax Act, 1961. It is subject to a flat corporate tax rate, which can be 22% under the new tax regime (plus surcharge and cess). This structure differs...

Legal Obligation Every OPC is required to file its financial statements annually with the Registrar of Companies (RoC). This requirement is mandated under Section 137 of the Companies Act, 2013. Filing is compulsory even if the company has not carried out any business...

Incorporation and Statutory Framework An OPC is incorporated under the Companies Act, 2013, and classified as a private limited company with a single member. It must comply with provisions applicable to private companies, with certain exemptions and relaxations for...

Flat Corporate Tax Rate OPCs enjoy the benefit of being taxed at a flat corporate tax rate, unlike individuals who are taxed under slab rates. Under the new tax regime (Section 115BAA), OPCs are taxed at 22% plus applicable surcharge and cess. This rate is lower than...

Income Tax Applicability An OPC is taxed as a domestic company under the Income Tax Act, 1961. It is required to pay tax at the applicable corporate tax rate, currently: 22% under the new tax regime (Section 115BAA), subject to conditions. 25% if the turnover is up to...

General Non-Compliance Penalties Failure to comply with the provisions of the Companies Act can result in monetary fines, disqualification, or prosecution. The company and its officer in default (usually the director) are both held liable. General penalties may...

Mandatory Statutory Audit Every OPC is mandatorily required to get its financial statements audited annually. This requirement applies regardless of turnover, profit, or capital. The audit ensures the company’s books of accounts present a true and fair view of its...

Exemption from AGM Requirement A one-person company is exempt from holding an Annual General Meeting (AGM). This exemption is granted under Section 96 of the Companies Act, 2013, specifically for OPCs. The rationale is that since there is only one member, a formal...

Legal Requirement for Filing An OPC is required to file its annual return every financial year under the Companies Act, 2013. The return provides a summary of the company’s shareholding, structure, and governance. It is a mandatory compliance, even if the company has...

Annual Filing Obligations An OPC must file its financial statements every financial year with the Registrar of Companies (RoC). Form AOC-4 is used to file the audited financial statements. Form MGT-7A, a simplified version of the annual return, is mandatory for OPCs....