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.
You can check the basic requirements which make any company eligible to apply for the closing of one person company from here.
The Companies Act provides a convenient and easy way for one person company closure and avoids the requirement to wait for the closure window.
Strike off of your company will ensure you save financial resources otherwise utilized on filing, audits, etc.
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.
Arrange to provide the documents as per the checklist shared.
Close the bank account if available and arrange to provide closure certificate.
Get NIL statement of accounts from Chartered Accountant and prepare documents as required to be attached for filing.
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.
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No, under Companies Act there is no time limit for making an application under STK 2 for the closing of one person company.
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 .
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.
At Provenience, 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.
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.
Yes, the digital signature of at least one director will be required as the application needs be filed in the electronic format.
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.
When a company is struck-off, it is no longer allowed to trade or sell assets, and conduct any business activity.