Closing a One Person Company (OPC)

Many entrepreneurs and business persons who have registered an OPC often have a common question, “How to close one person company?” Well, the process is quite similar to the closure of OPC. One Person Company or OPC is a significant milestone of the Companies Act 2013. This concept was introduced to help entrepreneurs and solo-founders quickly register their companies without the compulsion to get more partners. It enabled their business to function as a separate legal entity and offered all the benefits of a company.

Even though OPC has just one founder, it is legally required to follow compliances similar to other registered entities. This also includes a procedure to closing an OPC Company as per a set procedure laid down by the MCA. If the closure of OPC is not done correctly, it can warrant penalties and fines including the ones for non-compliance.

Procedure:

• 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.