Closure of One Person Company

If an OPC is inoperative for more than one year from the date of incorporation then the owner may apply for closure of the company under the normal procedure or Fast Track Exit (FTE) scheme of the MCA. If not so it can be wound up voluntarily or by the order of the Tribunal. As even though it’s inoperative it is compulsorily required to file all regulatory compliances and regular returns punctually, unless it has filed the closure documents with the concerned ROC. Hence it is better to file for the closure, so the members of the company are relived from fulfilling the legal and regulatory compliances.

Methods of Winding Up One Person Company

Winding up

This type of dissolution is done by holding a meeting approved by at least 2/3 of the creditors participating in the meeting. Then the management board must submit to the Commercial Register a request (in writing or electronic form via the company registration portal), the members dissolution resolution and the minutes of the general meeting. Winding up is a more elaborate process which is necessarily implemented when the company has assets and liabilities. In case of winding up a liquidator is to be appointed to manage the affairs of the wound up company.

Striking off

Striking off or removal of OPC through the Fast track exit scheme. When a company gains the status of a dormant company i.e. it has no activity as a company sine its inception or in the past one year it becomes a Defunct Company which can be wound up with a fast-track procedure which is through STK-2 form. Condition being that it should have no assets or liabilities. This can be filed by ROC or by the company itself. Strike off is done by the Registrar in accordance with the requirements of the Act.