Close a One Person Company (OPC) – Closure & Strike Off Services
A One Person Company (OPC) can be closed by following prescribed procedures under the Companies Act, 2013. Closure of an OPC involves striking off the company name from the Registrar of Companies (ROC) or voluntarily winding up the company.
At Taxless.in, we provide end-to-end assistance for OPC closure, documentation, and MCA filing to ensure a smooth and compliant process.
What is an OPC?
A One Person Company (OPC) is a type of private limited company that has only one shareholder and one director. It combines the benefits of a sole proprietorship with the advantages of a corporate structure.
When Should You Close an OPC?
You may consider closing an OPC if:
- Business is no longer operational
- No future business plans
- Financial losses or inactivity
- Compliance burden is high
- Owner wishes to exit the business
- No transactions for a long period
Methods to Close an OPC
1. Voluntary Strike Off (Fastest Method)
Applicable when:
- OPC has not been active for at least 1 year, or
- No liabilities or assets remain
👉 Filed under Form STK-2 with ROC.
2. Voluntary Winding Up (Formal Process)
Applicable when:
- OPC has assets/liabilities
- Requires liquidation process
👉 Involves appointing a liquidator and following winding-up procedures.
Documents Required for OPC Closure
- Certificate of Incorporation
- PAN card of the company
- Identity and address proof of the director
- Latest financial statements
- Bank account closure proof
- Board resolution for closure
- Affidavit and indemnity bond
- Statement of accounts (not older than 30 days)
- No Objection Certificate (if applicable)
- GST cancellation proof (if registered)
OPC Closure Process (Strike Off)
-
Clear all liabilities
Ensure there are no pending dues or obligations. -
Close Bank Accounts
Settle and close all company bank accounts. -
Prepare Financial Statements
Prepare a statement of accounts certified by a CA. -
Pass Resolution
Obtain approval from the director for closure. -
File Application (Form STK-2)
Submit closure application to ROC. -
ROC Verification
ROC reviews the application and issues notice. -
Strike Off Approval
Company name is removed from the register.
Time Required
- Typically 3 to 6 months depending on ROC processing and documentation
- Timeline may vary based on compliance and clarity of records
Important Conditions for Strike Off
- No active business operations
- No outstanding liabilities
- No ongoing litigation
- Bank accounts closed
- No assets or cleared assets
Consequences of Not Closing an Inactive OPC
- Continued compliance requirements (ROC filings, audits, etc.)
- Penalties for non-filing of returns
- Legal notices from MCA
- Risk of director disqualification
Common Mistakes to Avoid
- ❌ Filing closure without clearing liabilities
- ❌ Incorrect or incomplete documents
- ❌ Not closing bank accounts
- ❌ Ignoring pending ROC filings
- ❌ Providing inaccurate financial statements
How Taxless.in Helps
- Assessment of OPC eligibility for closure
- Preparation of closure documents and affidavits
- Drafting board resolutions and statements of accounts
- Filing Form STK-2 with ROC
- Assistance with GST cancellation and PAN updates
- Coordination with MCA and follow-ups
- End-to-end OPC strike-off support
Frequently Asked Questions (FAQs)
1. Can an OPC be closed if it has liabilities?
No, all liabilities must be cleared before applying for strike off.
2. Which form is used for OPC closure?
Form STK-2 is used for voluntary strike off.
3. Is audit required before closure?
Yes, financial statements must be prepared and certified by a CA.
4. Can an inactive OPC be closed?
Yes, if it has not been active for at least 1 year and meets eligibility conditions.
5. What happens after strike off approval?
The company name is removed from MCA records and legally ceases to exist.
Get Expert Help to Close Your OPC
Closing a One Person Company requires proper documentation and compliance with MCA rules. Taxless.in helps you close your OPC smoothly without legal complications.
👉 Contact us today for OPC closure and strike-off services.