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Closing an OPC

Let it go, in one go.

Close the Company, not dreams.

Benefits

Power of a company to one.

  • Easy and convenient

The Companies Act provides a convenient and easy way for one person company closure and avoids the requirement to wait for the closure window.

  • Cost-Saving

Strike off of your company will ensure you save financial resources otherwise utilized on filing, audits, etc.

  • Avoid Penalties

Even if your company is not operational, you will have to adhere to the compliance and face penalties on failure to do so. strike off of the company will free you from such compliances.

Procedure

Close the deals, accounts and file the documents.

  • Arranging the Documents

Arrange to provide the documents as per the checklist shared.

  • Bank Closure

Close the bank account if available and arrange to provide closure certificate.

  • Documentation

Get NIL statement of accounts from Chartered Accountant and prepare documents as required to be attached for filing.

  • Filing of Form

Filing of Form STK 2 with the Registrar of Companies within 30 days from the date of obtaining consent of the member for strike off the company.

Documents required

Almost same documents used while opening it.

  • Copy of PAN card of all the Directors.
  • Copy of Aadhar card of all the Directors.
  • Certificate of Closure of Bank Accounts of the Company.
  • Copy of Pan card of the Company.

How LawDocs can help?

As efficient to close as we are, when we open it.

  • Experts to guide you on closure
  • Legal advisory on nominee.

FAQs

No, under Companies Act there is no time limit for making an application under STK 2 for the closing of one person company.

Yes, the relevant Form for strike off is required to be filed within 30 days from the date of passing a special resolution for approving strike off.

If all the directors of the company have been disqualified, an EGM can be called to appoint a new director and the application shall be made to the ROC with respect to such appointment.

A company can be closed if 75% of shareholders are in favour of the decision. However, a company cannot be closed by filing the standard STK-2 if the dissenting person has more than 25% stake in the company. Under such a condition, an application may have to be filed before NCLT under IBC 2016.

Having satisfied the prerequisites of making an application for the closing of OPC company, any active or dormant company except listed Companies and the companies registered under section 8 of the Companies Act, 2013 can apply for the strike off of OPC company through form STK-2 .

At StartupSeven, our advice to our clients is always to follow the law to the dot. So, it is recommended and even mandatory to file all the pending ROC returns and discharge all the duties before making an application for the strike off of the Company in form STK-2.

Yes, the digital signature of at least one director will be required as the application needs be filed in the electronic format.

When a company is struck-off, it is no longer allowed to trade or sell assets, and conduct any business activity.

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
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