Closure of OPC(Fast Track Exit)
An One Person Company needs to be closed or windups when there are no exchanges or the Directors of company are not willing to proceed its operations. An one person company generally can be shut by both voluntary and compulsory circumstances.
Winding up a one person company is a tedious, but necessary, procedure. Without doing so, you would need to annually meet the requirements of the Registrar of Companies (which means spending money on audit and compliances). The bigger reason you would want to do this, of course, is because it releases the assets and investments made by you.
FAQ on Closure of OPC:
What are the compliances for Winding up of OPC?
Form FTE Application for striking off the name of company under the Fast Track Exit(FTE) Mode
What is the difference between Closure, Winding Up and Dissolution of Company?
- Closure of the company is done voluntarily and is done through the fast track exit scheme.
- Winding up of the company may be voluntary or by the order of the Court by appointing an official liquidator to monitor the process of winding up.
- Dissolution is initiated by the Court for ending the legal existence of the Company.
What is Fast Track Exit (FTE) Scheme?
- FTE is a company closure scheme initiated by MCA for easy and faster closure of One Person Company.
Which company is eligible to apply for closure of company?
- Any OPC which has been inoperative for more than 1 year from the date of its incorporation can apply for Closure under FTE scheme.
Why ROC filing is required for closure of OPC?
- It is necessary to file Closure with the ROC as ROC or MCA data base need to be updated and the OPC is free from all its legal compliances as it is officially closed. Even though business of the company is closed, unless closure documents are filed and approved by the ROC, company is not legally closed and the OPC needs to file all the regular returns.
What are the documents required for Closure of OPC?
- Application for Striking off of the OPC
- Board Resolution for closure
- Consent of Directors
- Director’s’ Affidavit
- Indemnity Bond
- Statement of Assets and Liabilities.
What is the time limit to file closure documents with ROC?
- The Form has to filled be filed with ROC office within 30 days from the date of Signing of the Statement of Assets and Liabilities.