Close a One Person Company
Close a One Person Company
Get StartedClosure of OPC
If an OPC is inoperative for more than one year from the date of incorporation then the owner may apply for closure of the company under the normal procedure or Fast Track Exit (FTE) scheme of the MCA. If not so it can be wound up voluntarily or by the order of the Tribunal. As even though it’s inoperative it is compulsorily required to file all regulatory compliances and regular returns punctually, unless it has filed the closure documents with the concerned ROC. Hence it is better to file for the closure, so the members of the company are relived from fulfilling the legal and regulatory compliances.
Methods of Winding Up One Person Company
Winding up
This type of dissolution is done by holding a meeting approved by at least 2/3 of the creditors participating in the meeting. Then the management board must submit to the Commercial Register a request (in writing or electronic form via the company registration portal), the members dissolution resolution and the minutes of the general meeting. Winding up is a more elaborate process which is necessarily implemented when the company has assets and liabilities. In case of winding up a liquidator is to be appointed to manage the affairs of the wound up company.
Striking off
Striking off or removal of OPC through the Fast track exit scheme. When a company gains the status of a dormant company i.e. it has no activity as a company sine its inception or in the past one year it becomes a Defunct Company which can be wound up with a fast-track procedure which is through STK-2 form. Condition being that it should have no assets or liabilities. This can be filed by ROC or by the company itself. Strike off is done by the Registrar in accordance with the requirements of the Act.
Documents Required to dissolve a one person company
Incorporation Documents
Company’s MoA – AoA, Certificate of Incorporation, PAN card and other registration certificates
Accounting Information
The financial statement of the Company for the most recent year, prepared prior to 30 days of filing the application
Details of Activity
Details whether the company has been operative for any period. If yes, since when the operations are discontinued
Legal Liabilities
A statement regarding pending litigations, if any involving the company
NOC from Creditors
Company must provide NOC for closure from creditors, if any
(Draft to be provided by LW experts)
NOC from Regulatory Bodies
NoC for closure to be obtained from Income Tax Department, SEBI, RBI, etc. if relevant
Have questions? Don’t worry, we are here to help!
Call us at 1800 313 4151 or Email us: support@legalwiz.in
Closure of one person company in 3 Easy Steps
1. Answer Quick Questions
- It takes less than 15 minutes to fill in our Questionnaires
- Provide basic details & documents required for registration
- Make payment through secured payment gateways
2. Experts are Here to Help
- Assigned Relationship Manager
- Drafting of necessary resolutions
- Drafting of affidavit & indemnity bond
- Preparation of other necessary documents
- Filing of Strike-off application with MCA
3. Your Company is Registered
- All it takes is 20 working days*
Process of OPC Strike-off
Day 1 - 2
- Discussion and collection of basic Information
- Provide required documents
Day 3 - 8
- Review of the details and documents furnished
- Drafting of necessary resolutions
- Drafting of the affidavit, indemnity bond and other documents
- Provide duly executed affidavit 7 indemnity bond
- Provide signed documents after review
Day 9 - 15
- Preparation of applications for online filing
- Filing of required forms and documents with MCA
- Application for striking-off company name
Day 16 onwards
- Government processing time to approve strike-off
- The notice of strike-off to be published by MCA after approval
Explore dissolution of one person company
Frequently Asked Questions
A closure of an one person company can be filed when the company is not active and wants to shake hands off its liabilities and compliances. It has to repay or extinguish all their liabilities and receive a No Objection Certificate (NOC) from the creditors before filing the closure application. And conduct a meeting where the director and members decide upon the closure by signing a special resolution or a consent of seventy-five percent members regarding paid up share capital.
The Registrar of Companies can remove the company name from the list of companies if he has reasonable cause to believe that:
- A Company failed to commence its business within one year of its incorporation or
- A company is not carrying on any business or operation for two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company.
A Company closure is filed under Form STK 2 along with the government fees of Rs.5000/- and some necessary docs. A One Person Company closure can be filed after the following steps:
- First step is to pay all liabilities and get an NOC for the closure
- 2/3rd majority Consent of the creditors
After filing the application with the Ministry of Corporate Affairs, it takes about 90 days for striking off the Company from MCA records.
ROC will publish list of companies struck off in the Official Gazette. The Company under fast track exit mode will be considered closed from the date of publication of the notice in Official Gazette.
The closing documents have to be filed within 30 days from the date of signing of the assets and liabilities statement.
It is necessary to intimate the Registrar for the closure of Private Limited Company to update the MCA data and make company free from all its legal compliances.
Closure of the OPC is done voluntarily and is done through the fast track exit scheme. Winding up of the company may be voluntary or by the order of the Court by appointing an official liquidator to monitor the process of Winding up. Dissolution is initiated by the Court for ending the legal existence of the Company.
Fast Track Exit is a scheme introduced by the Ministry of Corporate Affairs (MCA) for inactive companies to wind up and get their names struck off from the MCA record with lesser formalities.
A closure is the best option in case the company is not running as it:
- Saves the yearly compliance cost
- No non-compliance risk.
- No risk of high penalties and prosecutions
- No risk of getting into default
Call us at: 1800 313 4151 or Email us: support@legalwiz.in
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