One Person Company Closure ?
If an OPC (One Person Company) remains inactive for more than one year from the date of incorporation, the owner has the option to apply for the closure of the company using the Fast Track Exit (FTE) scheme provided by the MCA (Ministry of Corporate Affairs). Alternatively, the company can be voluntarily wound up or be ordered to be wound up by the National Company Law Tribunal (NCLT). Despite being inactive, the OPC is still obligated to file all compliances and regular returns promptly. Therefore, it is advisable to file for closure to relieve the stakeholders of the company from the burden of fulfilling legal and regulatory compliances.
Key Requirements for Initiating Strike Off of One Person Company (OPC)
- The company has diligently filed all its financial statements and annual returns with the Registrar of Companies up to the current date.
- The subscribers to the Memorandum of Association have not fulfilled their subscription payment obligations, which they had committed to pay during the incorporation process. Moreover, no declaration confirming this fact has been submitted within 180 days from the date of incorporation.
- The company is not actively engaged in any business or operational activities, as confirmed during the physical verification conducted under section 12(9) of the Act.
- The company does not have any secured loans, and there are no existing charges on its assets.
- No inquiry, technical scrutiny, inspection, or investigation is either ordered or pending against the company.
- There are no ongoing prosecutions or pending compounding applications for any offenses under the Act or any other relevant Acts, either against the company or the undersigned.
Procedure
STEP1 – Discussion and Gathering of Essential Information
- Engage in a thorough discussion with the client to understand their requirements and situation.
- Collect all the necessary basic information and documents required for the process.
STEP2 – Review and Document Preparation
- Examine and review the details and documents provided by the client.
- Prepare the essential resolutions and other required documents.
- Draft the affidavit, indemnity bond, and any other necessary legal paperwork.
- Present the duly executed affidavit and indemnity bond for the client’s approval and signature.
STEP3 – Preparation and Filing
- Prepare the applications for online filing with the relevant authorities.
- File the necessary forms and documents with the Ministry of Corporate Affairs (MCA).
- Apply for striking-off the company name as per the client’s request.
STEP4 – Government Processing and Approval
- Wait for the government processing time for the approval of the strike-off.
- Monitor the progress of the application with the MCA until the strike-off is officially approved.
