Description

🛑 Cancellation / Closure of a One Person Company (OPC)

A One Person Company (OPC) is a popular choice for solo entrepreneurs due to limited liability and a simple structure. However, if the business becomes inactive, or the owner decides to discontinue, the OPC must be closed legally to avoid future penalties and compliance burdens.

🔁 Modes of Closure

✅ 1. Fast Track Exit (Strike Off) – Section 248

Applicable if:

• OPC has not commenced any business since incorporation, or
• OPC has not carried on any business for two years or more, and
• It has no liabilities.

✅ 2. Voluntary Winding Up

Applicable when:

• The OPC is active but wants to shut down, and
• It has assets and liabilities to be settled.
• Requires appointment of a liquidator and reporting to NCLT.

✅ 3. Compulsory Winding Up by Tribunal

• Done by NCLT in case of fraud, default, or non-compliance with the Companies Act.

📋 Documents Required for Strike Off

1. Board Resolution (as OPC has only one member, this is a declaration by the director)
2. Affidavit and Indemnity Bond (Forms STK-3 & STK-4)
3. Statement of Accounts (certified by a Chartered Accountant, not older than 30 days)
4. Income Tax Return acknowledgement (if applicable)
5. No Objection Certificate (NOC) from concerned authorities (if required)
6. Form STK-2 (Application for strike off)

⚠️ Important Points

• OPC must clear all dues and liabilities before applying for closure.
• All ROC filings must be up to date.
• The company must not be under inspection or investigation.
• Only the nominee director (if any) will take over if the sole member dies or is incapacitated, until formal closure.

🕒 Timeframe for Closure

• Around 3–6 months, depending on ROC review and document submission quality.

❗ Why Legal Closure is Important

• Avoid late fees and penalties from MCA
• Prevent director disqualification
• Maintain a clean compliance history for future ventures

✅ GST Suvidha Centre Assistance

Our experts will help you:

• Draft closure documents
• File STK-2, affidavits, and CA-certified financials
• Coordinate with ROC for successful strike-off
• Ensure 100% legal and smooth cancellation

📞 Contact us today to shut down your OPC professionally and compliantly.