Close a One Person Company
A One Person Company (OPC) can be closed either voluntarily or through an order of the tribunal. Additionally, an OPC that has been inactive since incorporation or has not carried out any business activities for at least one year can apply for closure under the Ministry of Corporate Affairs (MCA) Fast Track Exit (FTE) scheme.
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INTRODUCTION
Closure of One Person Company (OPC)
An owner of a One Person Company (OPC) may choose to close the company through the Ministry of Corporate Affairs (MCA) Fast Track Exit (FTE) scheme or through the regular winding-up process if the business has not been operational for more than one year from its date of incorporation. Alternatively, the Tribunal may order the winding up of an OPC either on its own or through a petition. Until the closure process is formally completed and the necessary documents are filed with the concerned Registrar of Companies (ROC), the company must continue to comply with all statutory requirements and file regular returns, even if it is inactive. Therefore, it is advisable for the owner to apply for closure in a timely manner to relieve the company and its sole member from ongoing legal and regulatory compliance obligations.
Advantage
Methods of Winding Up a One Person Company (OPC)
Winding Up
A One Person Company (OPC) can be wound up voluntarily or by order of a Tribunal. If the company has debts, the creditors must approve the winding up by passing a resolution supported by at least two-thirds in value of the creditors present at the meeting.Once approved, the Board of Directors must submit the minutes of the general meeting, the members’ resolution for dissolution, and an application (in physical or electronic form) through the business registration portal to the concerned Registrar of Companies (ROC).When an OPC has both assets and liabilities, a more detailed procedure must be followed. A liquidator must be appointed to manage the company’s affairs, settle its debts, and distribute any remaining assets among the members according to the applicable laws.
Striking Off
An OPC can also be closed by applying for striking off its name from the Register of Companies under the Ministry of Corporate Affairs (MCA) Fast Track Exit (FTE) scheme.This option is available when the company has been inactive since incorporation or has not carried out any business activities for at least one year and has no assets or liabilities. In such cases, the company can file an application in Form STK-2 with the ROC for striking off its name.Alternatively, the ROC may also initiate the process to strike off the company if it finds that the OPC is not carrying on any business operations, in compliance with the provisions of the Companies Act.
A LIST OF DOCUMENTS
📄List of Documents
Documents Required to Dissolve a One Person Company (OPC)
1. Incorporation Documents
Memorandum and Articles of Association (MoA & AoA)
Certificate of Incorporation
PAN Card of the company
Any other registration certificates, if applicable
2. Accounting Information
The company’s latest financial statements, prepared and signed not more than 30 days before the date of filing the closure application
3. Details of Business Activity
A statement detailing the period during which the company was operational
If operations have been suspended, the date of cessation of business activities
4. Declaration of Legal Liabilities
A declaration stating any ongoing legal proceedings or confirming that there are no pending litigations against the company
5. No Objection Certificate (NOC) from Creditors
If applicable, a No Objection Certificate from the company’s creditors confirming that they have no objection to the closure of the company
(Draft format will be provided by legal experts, if needed)
6. NOC from Regulatory Authorities
Where applicable, a No Objection Certificate for closure must be obtained from concerned regulatory bodies such as the Income Tax Department, SEBI, RBI, or any other authorities regulating the company’s activities
Closure of One Person Company in 3 Easy Steps
Step 1: Answer Quick Questions
Fill out our simple online questionnaire — it takes less than 15 minutes!
Provide the basic details and documents required for closure.
Make a secure payment through our trusted payment gateways.
Step 2: Experts Are Here to Help
A dedicated Relationship Manager will guide you through the entire process.
Drafting of all necessary board resolutions.
Preparation of the affidavit, indemnity bond, and other required documents.
Filing of the strike-off application with the Ministry of Corporate Affairs (MCA).
Step 3: Company Closure Processed
Once filed, the strike-off process takes approximately 20 working days.*
*Subject to MCA’s processing time.
Detailed Process of OPC Strike-Off
| Timeline | Process |
|---|---|
| Day 1 – 2 | Initial discussion and collection of basic information Submission of required documents |
| Day 3 – 8 | Review of details and documents Drafting of board resolutions Preparation of affidavit and indemnity bond Execution of affidavit and indemnity bond Signing of final documents |
| Day 9 – 15 | Preparation of online application for filing Submission of forms and documents with MCA Application for striking off the company’s name |
| Day 16 onwards | MCA processing time for approval Publication of notice of strike-off by MCA |
Frequently Asked Questions
Have questions before reaching out? Here are quick answers to some of the most common queries we receive about contacting us, consultations, and service inquiries.
An OPC closure refers to the process of legally dissolving a One Person Company when it is no longer operational and wishes to relieve itself from ongoing liabilities and statutory compliances. Before applying for closure, the company must repay or settle all outstanding liabilities and obtain a No Objection Certificate (NOC) from creditors. A meeting must then be conducted where the sole director or members approve the closure by passing a special resolution or with the consent of at least 75% of the paid-up share capital.
Yes, the Registrar of Companies (ROC) can initiate the removal of a company’s name from the Register if:
The company fails to commence its business within one year of incorporation; or
The company has not carried on any business or operations for the last two consecutive financial years and has not applied for the status of a dormant company within that period.
To close an OPC under the Fast Track Exit scheme, you must file Form STK-2 along with the prescribed government fee of ₹5,000 and the required documents. The basic steps are:
Repay all liabilities and secure an NOC from creditors.
Obtain consent from at least two-thirds of the creditors.
Prepare the necessary affidavits, indemnity bonds, and resolutions.
File Form STK-2 with the ROC.
After filing the closure application with the Ministry of Corporate Affairs (MCA), it generally takes about 90 days for the company’s name to be officially struck off from MCA records, subject to government processing time.
A One Person Company is considered dissolved once the ROC publishes its name in the Official Gazette. The company is treated as closed from the date of publication.
The statement of accounts and closure documents must be filed within 30 days from the date of signing the statement of assets and liabilities.