Does Your OPC Qualify for Exemptions from Annual Return Requirements?

[Ishita Ramani]

Many small business owners wonder whether their OPC qualifies for exemptions from filing the OPC Annual Return. In this article, we shall help you know whether your OPC qualifies for an exemption or not.

What is the OPC Annual Return?

Every OPC registered under the Companies Act, 2013, is required to file annual returns and financial statements with the Ministry of Corporate Affairs (MCA). This includes:

• Form AOC-4: for financial statements.
• Form MGT-7A: for the annual return of OPCs and small companies.

These filings ensure legal compliance and help maintain transparency with the government.

Are There Any Exemptions for OPCs?

Yes, the government has introduced certain compliance relaxations for OPCs to ease their burden. However, these are limited and do not exempt an OPC from filing annual returns entirely.

Key Exemptions Available to OPCs:

1. No requirement to hold AGM (Annual General Meeting):

Unlike other companies, an OPC is not required to hold an AGM.

2. Simplified Annual Return Filing – MGT-7A:

OPCs can file their annual return using Form MGT-7A, a simplified version designed for OPCs and small companies.

3. Reduced filing frequency for certain forms:

Some compliance timelines and requirements are slightly relaxed for OPCs.

What Is Not Exempted?

Even with the above relaxations, every OPC must:

• File Form AOC-4 within 180 days from the end of the financial year.
• File Form MGT-7A within 60 days from the date of signing financials.
• Failure to comply will lead to penalties and late fees, as per the MCA guidelines.
• Check filing status or submit returns at the official MCA website

Who Can Benefit from These Exemptions?

Generally, OPC exemptions are applicable if:

• Your company is registered as an OPC under the Companies Act.
• You follow the timelines for filing MGT-7A and AOC-4.

Benefits of OPC Annual Return Compliance

• Maintains the active legal status of your company.
• Avoids heavy penalties and legal actions.
• Builds business credibility with investors and banks.
• Keeps you aligned with government rules and updates.

Conclusion

While OPCs enjoy certain compliance relaxations, they are not exempt from filing OPC annual returns. Every OPC must submit Form AOC-4 and Form MGT-7A on time through the MCA portal. These filings are essential for legal compliance and maintaining business transparency.