If your One Person Company is no longer in operation, it should be closed down. According to the Companies Act, even if an OPC is inactive, it is still required to file all regulatory compliances and regular returns on time, unless the closure documents have already been submitted to the relevant ROC. As a result, applying for closure / strike off is preferable so that the company’s members are relieved of having to comply with legal and regulatory requirements.

An application for striking off the Company could have to be filed to ROC if the business is not running. Company closure could be because of several reasons. For the closing a One Person Company, there can be various internal to external factors. Such as low working capital, voluntary closing business, government policies, and so on.

The provisions of the Companies Act, 2013 govern the striking-off Company. For winding up OPC under MCA, you have to file an e-form STK-2. The government fee for the form is Rs 10,000/-. All ROC compliances are mandatory before filing any company closure application.

For OPC closure, the Company should be one year older. That means only after one year of incorporation, the Company can be wound up under the law. Also, at least two years should lapse before the last business transaction.

In the Company closure application, Directors need to file affidavits and indemnity bonds. There should not be any liabilities outstanding in the name of the Company. The name of the Company publishes in the gazette for creditor’s/third-party comments. If no objections are received during such time, the closure gets department approval.