Winding Up or Closing a One Person Company - Online Procedure

While the OPC closure process may seem lengthy, it is relatively straightforward with professional guidance. Here's a step-by-step breakdown of the process to close your OPC smoothly.

1. Drafting Required Documents

Our team of experienced lawyers, CAs, and CS professionals will handle all documentation for you. We ensure that your sensitive information remains secure and privacy is respected throughout the process.

✅ Here's how we assist you in this stage:

• Gathering Information: We collect all necessary details, including the OPC name, business information, official address, reason for closure, and other relevant data.

• Draft Preparation: Based on the gathered details, we prepare a digital file with the essential information and complete the Digital Signature Certificate (DSC) process.

• Document Review: We meticulously review all digital documents, including the DSC, No Objection Certificate (NOC), and STK-2 form, coordinating with you as needed for any additional information.

2. Obtaining the No Objection Certificate (NOC)

✅ Before closing your OPC, it’s essential to:

• Clear Debts: Ensure all creditors are paid.
• Dispose of Assets: Sell or transfer any remaining assets.
• Close Bank Accounts: Terminate all business bank accounts related to the OPC.

3. Filing with the Registrar of Companies (ROC)

After completing the DSC and document submission, we proceed to file the closure request with the Registrar of Companies (ROC). The ROC carefully evaluates all paperwork and, if in order, approves the closure of the OPC.

You will be notified of the closure status via email. Note that incomplete paperwork may result in disapproval, causing delays. To avoid this, hiring professional assistance can streamline the process.

4. Finalizing the Closure of Your OPC

Once all documents are approved, and the ROC grants closure, your OPC is officially closed. This final stage ensures that your business responsibilities are concluded in compliance with legal requirements.

Here's a breakdown of both options to help you choose the best approach for your business.

1. Striking Off (Fast-Track Exit)

Striking off is the quicker and simpler method for closing an OPC. It involves the company ceasing all business activities for a period of at least one year before filing for closure. To qualify for striking off, the OPC must meet the following conditions:

✅ The company must not have any outstanding assets or liabilities.

✅ The company must not be engaged in any business operations for at least one year.

✅ A declaration must be made confirming the company is defunct.

Once these conditions are met, the company can apply for striking off under the Fast-Track Exit Scheme (FTE) with the Ministry of Corporate Affairs (MCA).

2. Winding Up (Formal Liquidation Process)

Winding up is a more formal and detailed process that requires the following steps:

• Consent from Creditors: The OPC must obtain approval from its creditors, participants, and management board.

• Submission of Documents: Once consent is obtained, the company can legally file for closure with the Registrar of Companies (ROC).

• Elaborate Documentation: Winding up requires more documentation compared to striking off, including detailed disclosures of the company’s assets and liabilities. Account statements must be audited by a Chartered Accountant (CA), and an affidavit (STK 4) from the sole director is also needed.

While winding up ensures a complete and formal closure of the company, it can be a lengthy process involving more legal formalities and documentation.