Closure of One Person Company
Overview of Closure of One Person Company (OPC) in India
The closure of a One Person Company (OPC) in India is a structured legal process governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA). It involves formally dissolving the OPC, settling outstanding liabilities, and filing necessary documents with the Registrar of Companies (RoC). The closure can be initiated voluntarily by the sole shareholder or compulsorily by authorities under specific conditions. The most common method is voluntary strike-off through Form STK-2, applicable when the OPC is dormant or non-operational for a prescribed period. Once the process is completed, the OPC ceases to exist legally, and its name is removed from the Register of Companies. This ensures relief from compliance requirements, preventing legal penalties and recurring maintenance costs. Proper closure provides legal protection and helps avoid future complications associated with an inactive OPC.
What is Closure of OPC in India?
The closure of a One Person Company (OPC) in India is a legal procedure governed by the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA). It involves legally dissolving the company’s existence, filing the necessary documents, settling outstanding liabilities, and officially removing the company’s name from the Register of Companies maintained by the Registrar of Companies (RoC). Once completed, the OPC ceases to exist as a legal entity and is no longer liable for statutory compliance requirements.
Requirements for Closure of OPC
All financial liabilities, statutory dues, and debts must be cleared before applying for closure. The OPC should not have been operational for more than two years or should not have commenced business within a year of incorporation. The sole shareholder must pass a resolution for voluntary closure and approve the strike-off application. Prepare a statement of assets and liabilities audited by a Chartered Accountant, not older than 30 days from the date of application. Ensure the latest Income Tax Returns are filed and acknowledged by the Income Tax Department.
Documents Required for Closure of OPC in India
Board Resolution
Passed by the sole shareholder for closure.
Indemnity Bond
Declaring no pending liabilities or claims.
Affidavit
From the sole shareholder stating the closure intention.
Statement
Audited financial statements not older than 30 days from the date of filing.
Form STK-2
Application for striking off the name from the RoC.
No Objection Certificate (NOC)
From creditors, if applicable.
Income Tax Return Acknowledgement
Proof of filing the most recent tax returns.
Process of Closure of OPC in India
The sole shareholder must pass a resolution for voluntary closure.
Ensure all pending dues and liabilities are cleared before applying.
Submit the form with required documents to the RoC.
RoC reviews the application and may publish a notice on the MCA website for objections.
If no objections are received, RoC issues a Dissolution Certificate, officially closing the OPC.
Benefits of Closing an OPC in India
Avoid Compliance Costs
No need to file annual returns or financial statements.
Protection from Legal Penalties
Prevents future liabilities and penalties for non-compliance.
Simplified Exit
Voluntary strike-off method is straightforward for inactive OPCs.
Cost Savings
Eliminates the financial burden of maintaining an inactive OPC.
Why Choose "Rule Infinity" for Closure of Your OPC in India
Expert Guidance: Professional advice from experienced consultants.
Hassle-Free Process: Complete support from documentation to filing.
Transparent Fees: No hidden charges, only affordable pricing.
Timely Completion: Efficient and streamlined process for faster closure.
Frequently Asked Questions
Form STK-2 is an application form filed with the Registrar of Companies (RoC) for striking off the name of an OPC from the Register of Companies under Section 248(2) of the Companies Act, 2013.
The closure process usually takes 3 to 6 months, depending on the completion of documentation, settlement of liabilities, and approval from the RoC.
No, all liabilities must be cleared before initiating the closure process. The OPC must provide a declaration of having no liabilities during the application process.
Yes, it is advisable to file all pending Income Tax Returns before applying for closure to avoid rejection or legal complications.
Failure to close an OPC legally can result in continuous compliance requirements, penalties for non-filing of annual returns, and legal actions from the MCA or RoC.
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