Close a One Person Company
One Person Companies (OPCs) can be wound up voluntarily or by a tribunal ruling. Additionally, an OPC may request closure under the MCA’s Fast Track Exit (FTE) program if it has been consistently non-operational for the previous year, measured from the date of incorporation.
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INTRODUCTION
Closure of OPC
An owner of an OPC may request the company’s termination through the MCA’s Fast Track Exit (FTE) program or regular procedure if the business has not operated for more than a year following its establishment date. If not, the Tribunal may decide to wind it up on its own initiative or by order. Unless it has filed the closure paperwork with the relevant ROC, it is mandatory for it to file all regulatory compliances and regular returns on time, even if it is not operating. Therefore, it is preferable to apply for closure in order to relieve the company’s members of their need to comply with laws and regulations.
Methods of Winding Up One Person Company
Winding up
To dissolve a debt this way, a meeting must be called and authorized by at least two thirds of the creditors present. The management board is then required to submit the minutes of the general meeting, the members dissolution resolution, and a request (in written or electronic form) via the business registration site to the Commercial Register. A more complex procedure known as winding up must be used when a corporation has both assets and liabilities. A liquidator must be appointed in order to oversee the wound-up company's operations.
Striking off
removing or striking off OPC under the Fast Track Exit Plan. When an organization becomes inactive, meaning it hasn't operated as a firm since its founding, or if it has gone defunct within the last year, it can be closed down quickly by completing a STK-2 form. The requirement is that it should be devoid of any assets or obligations. Either the business or ROC may file this. The Registrar strikes off in compliance with the Act's obligations.
A LIST OF DOCUMENTS
Documents Required to dissolve a one person company
Incorporation Documents
The company's AoA, PAN card, Certificate of Incorporation, and other certifications of registration
Accounting Information
The most recent year's financial statement of the company, prepared before 30 days before application submission
Details of Activity
Describes the length of time the business has been in operation. If so, when have the operations been suspended?
Legal Liabilities
An announcement about any ongoing legal actions the corporation may be involved in
NOC from Creditors
If any, the Company will furnish a NOC for closure from Creditors (LW specialists will offer a draft).
NOC from Regulatory Bodies
NoC for closure must be acquired, if applicable, from the Income Tax Department, SEBI, RBI, etc.
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Closure of one person company in 3 Easy Steps
1. Respond to Quick Questions
- Give our questionnaires fewer than .15 minutes to complete.
- Provide basic details & documents required for registration
- Pay using a safe and secure payment gateway.
2. Experts are Here to Help
- Dedicated Relationship Manager
- drafting the required resolutions
- affidavit and indemnity bond drafting
- Getting additional required paperwork ready
- filing an application for a strike-off with the MCA
3. Your Company is Registered
- All it takes is 20 working days*
Process of OPC Strike-off
Day 1 - 2
- Talking about and gathering fundamental data
- Give the necessary paperwork.
Day 3 - 8
- Review of the details and documents furnished
- drafting the required resolutions
- drafting the indemnification bond, affidavit, and other legal papers
- Give a properly completed Affidavit 7 indemnification bond.
- After reviewing, provide signed copies of the papers.
Day 9 - 15
- Getting applications ready for online submission
- submitting the necessary paperwork to the MCA
- Application to have the firm name struck off
Day 16 onwards
- Processing period for government approval of strike-off
- Following approval, the MCA will publish the notice of strike-off.
Explore dissolution of one person company
Frequently Asked Questions
When a one-person business is no longer in operation and wishes to shirk its obligations and compliances, it may file for closure. Before submitting the closure application, it must pay off or eliminate all of its debts and obtain a No Objection Certificate (NOC) from the creditors. And hold a meeting where the members and the director determine whether to close the company by signing a special resolution or obtaining the consent of 75% of the members regarding paid-up share capital.
The firm name may be struck from the list of companies by the Registrar of Companies if he has good reason to suspect that:
A company did not launch its operations within a year following its incorporation, or
For the two fiscal years that before it, the company did not conduct any operations or business, and it did not file an application to become a dormant corporation during that time.
A company closure is submitted using Form STK 2, together with the required documentation and the Rs. 5,000 government fee. Following these processes, a One Person Company closure can be filed:
- Getting a NOC for the closure and paying all debts are the first steps.
- two-thirds majority approval from the creditors
The process of having the company removed from MCA records takes roughly ninety days once the application is filed with the Ministry of Corporate Affairs.
- The Official Gazette will contain a list of companies that have been stricken off by ROC. The company that is in fast track exit mode shall be deemed closed as of the date when the notice is published in the official gazette
- Within 30 days of the assets and liabilities statement’s signing date, the closing paperwork must be submitted.
