Winding up or Closing a One Person Company (OPC)

When the OPC is discontinue the business or converted then there is a need of the Filing a application for winding up or closing a one person company (OPC),For filing of the Winding up/Closing of the OPC we need to file all the require returns and fulfill all the statutory compliances. The Winding up of OPC is either the voluntarily or by the Tribunal and this is require to inform the MCA or ROC about the winding up and closing. Government has introduce a fast way for the winding up and closing the FAST TRACK EXIT (FTE). Here, it may be noted that, this winding up of an OPC is different from changing it to a private or public limited company at any point of time when its paid-up capital exceeds INR 50 Lac OR its average annual turnover of three immediately preceding consecutive financial years becomes more than INR 2 Crore.

Required Documents

  • Application for striking off the name of OPC
  • Indemnity Bond notarized by Directors.
  • Statement of Accounts latest.
  • Statement of Accounts containing assets & liabilities of the Company Audit Report.
  • Affidavit by Sole Director in Form STK 4.
  • Signed Resolution by sole member.
  • Bank Account Closure Certificates
  • PAN Card of the Company.

One Person Company (OPC) Closure Process

Under One Person Company (OPC) it does not require any consent from any other person. Further the company closure request should be filed after repaying all creditors, disposing all assets and closing all bank accounts. Further, kindly note the following points: - Take NOC form after clearing the dues/liabilities. - If you are registered with any government department, then you must seek NOC to close the business operations like from Income Tax Department etc. Passing a resolution with support of 2/3rd in value of the creditors of the OPC, for voluntary winding up of the company. The notice of this board resolution is to be submitted to the relevant ROC within 10 days of its approval from the creditors. A declaration is also to be submitted stating that the OPC has no debts, or if there are some debts, these will be paid off through sales of its assets within one year. Filing the application for striking off the OPC with the concerned ROC, together with submitting the Board Resolution in favor of winding up. In case, the closing OPC has been inactive for one year after its incorporation, then the Form FTE is to be filed with ROC, within 30 days from the date of signing the statement of assets and liabilities of the closing OPC. The resolution for winding up is also to be advertised in the Official Gazette and also in a newspaper which is widely circulated in the district where the head office/registered office of the closing OPC is located. Appointing a registered Liquidator for processing of necessary tasks associated with the winding up of the OPC. This liquidator is required to maintain and submit all requisite reports and accounts to the Tribunal and also to the Registrar. Submission of the Statement of Accounts, Statement of Assets and Liabilities, Indemnity Bond, etc. Lastly, if satisfied, the Tribunal and the Registrar will pass the winding up, and declare the OPC closed.

FAQ's on Winding up or Closing a One Person Company

What is mean by one person Co. (OPC) Closure?

The Process of closing a One Person Company (OPC) is known as Strike off or company closure. Company closure is done under newly notified rules Companies (Removal of Names of Companies) Rules, 2016 which governed by section 248 of Companies Act, 2013. If you are not running your company, we recommend you to close your One Person Company.

What is the difference between closure, winding up, Dissolution of OPC?

- 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.

Why ROC filling is required for closing of OPC?

It is necessary to file Closure with the ROC as ROC or MCA data base need to be updated and the OPC is free from all its legal compliances as it is officially closed. Even though business of the company is closed, unless closure documents are filed and approved by the ROC, company is not legally closed and the OPC needs to file all the regular returns.

What Is Fast Track Exit (FTE) Schemes?

FTE is a company closure scheme initiated by MCA for easy and faster closure of One Person Company.

Which Company is eligible to apply for Closure of OPC?

Any OPC which has been inoperative for more than 1 year from the date of its incorporation can apply for Closure under FTE scheme.

What are the expenses and cost involved in Closing OPC?

The filing fees for Form FTE is Rs. 5000. Fill the above details and submit. You will get documents in 1 minute.

What documents are required for Closure of OPC?

Application for Striking off of the OPC, Board Resolution for closure, Consent of Directors, Director's Affidavit, Indemnity Bond, Statement of Assets and Liabilities.

What is time limit to file Closure documents with ROC?

The Form has to filled be filed with ROC office within 30 days from the date of Signing of the Statement of Assets and Liabilities.

Why to close a One Person Company (OPC)?

If you are not running a company and not even complying with the law then you can file OPC Company closure to avoid being in default. A dummy company, defunct company, non-operative companies can file for Company closure to avoid late penalties etc.

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