Documents needed to close an OPC

Mandatory documents required to close an OPC are application, board resolution for closing along with the consent of directors and creditors (if any), director's affidavit, indemnity bond, statement of accounts.

Now the process of closing a company is done under the new rules, the Companies (Removal of names of companies) Rules, 2016. If you are not running your business, you must close your company. If an OPC is inoperative for more than one year from the date of incorporation then you may apply for closure of the company under the normal procedure or Fast Track Exit (FTE) scheme of the MCA.

OPC can strike off its name from the ROC by any of the following ways:

• Voluntary
• By order of the Tribunal

Strike off the name of the company or winding up of the company is compulsorily required if the compan is not in operation, to make the company free from all the legal compliances and to update the MCA database. The strike off application should be filed within 30 days from the date of signing the statement of Assets and Liabilities.

Mandatory Documents for OPC Wind up

The Following documents are required to close a One Person Company:

• Application for striking off the name of OPC

  To close a company through traditional method, a copy of application for strike off the name of the company is required to file in form STK-2 with the ROC. Earlier in Companies Act, 1956 company was closing through the FTE (Fast Track Exit) method with the strike off application filed in form FTE along with the governmen fees.

• Board Resolution for closing

  Board resolution with 2/3rd of the majority is required to make an application for strike off the name of the company. The board members must be in favour of the closure of the company. Through the board meeting authorise the director of the company for execution the affidavits and indemnity bond.

• Declaration with Board Resolution

  A declaration is submitted with the board resolution which stated that the OPC has no debts or if OPC has debts then company is capable of paying these debts through the sale of the company’s assets within one year.

• Consent of Directors

  Director can give his consent by signing the consent letter. It is a written document through which director show his accent. Director’s consent letter must be attached with the application for closing the company.

• Consent of creditors

  If company have creditors then the consent from the creditors is also required to be attached with the application form. In case of no creditor company should mention that the company has nil creditors.

• Director’s Affidavit

  Duly attested affidavit in the prescribed form STK-4 from each director of the company is required as a supporting document which declares that company is not doing any business and does not have any dues. If any damage caused to any person due to the strike off the name of the company then director will pay such loss.

• Indemnity Bond

  An indemnity bond is a supporting document submitted with the application in the form STK-5 duly signed by the directors of the company. This bond indemnifies the losses of the person due to closure of the company.

• Statement of Assets and Liability

  An audited copy of statement of assets and liabilities should be filed with the application made under form STK-2. It discloses the assets and liabilities of the company which shows that company has enough provision to release the due amount.

• Statement of Accounts

  Statement of accounts also submitted with the application of striking off which also certify that the company have sufficient assets to pay off the damages of the people and due amount.