Are you willing to close your One Person Company? Our expert team is here to guide you completely through the legal process, including appointing a director to oversee the closure. Let us take care of all the necessary steps for a smooth and hassle-free closure.

The closure of a One Person Company involves the legal process of closing down the operations of an OPC and eliminating it from the list of Ministry of Corporate Affairs (MCA). An OPC can be closed by regulatory authorities or voluntarily under specified conditions.

Here are some of the ways to close a one person company –

1. Voluntary Closure or Strike Off

• Under section 248 of the Companies Act, 2013, if the OPC is not continuing its operations for two years or has no liabilities, then it can voluntarily apply for a closure.
• The company should file Form STK-2 with the relevant documents.

2. Compulsory Closure by Registrar of Companies or ROC

• When the company is unable to comply with statutory requirements, such as annual returns for two consecutive years or non-filing of financial statements, then it can apply for compulsory closure by ROC.
• When the company is connected with fraudulent activities or violates laws, then it should opt for compulsory closure by ROC.

3. Winding Up by Tribunal

• When the OPC is incapable of paying its debts or the promoter wants to shut down the company due to insolvency, it should be executed by the Tribunal.
• When the Tribunal announces the closing of an OPC due to special conditions.

Board Resolution: As there is only one director in the company, a resolution should still be passed to close the company.

Clear Remaining Liabilities: The company should pay all pending loans, dues, and liabilities.

File Form STK-2: The company should file the Form STK-2 with relevant documents –

1. Bank account closure certificate.
2. Digital Signature Certificate (DSC) and Director Identification Number (DIN) of the director.
3. Indemnity bond and affidavit from the director.
4. No objection certificate (NOC) from creditors, if applicable.
5. Statement of assets and liabilities.

ROC Approval & Strike Off: After filing and submitting the form, the Registrar of Companies will verify the application. On satisfaction, they will remove the company’s name from the register.

Important Points to Remember

1. The OPC should be paid all tax liabilities and be free from legal disputes.
2. If the OPC never started its functions, it can apply for a closure immediately after formation.
3. The closure process depends on document verification and approvals; thus, it may take 3-6 months to complete the process.