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The Closure of a One Person Company (OPC) refers to the process of officially winding up its operations and removing its name from the records of the Ministry of Corporate Affairs (MCA). This can happen when the sole member decides to discontinue the business voluntarily, or when the company becomes inactive and fails to meet compliance requirements, leading to a compulsory strike-off by the MCA.
By closing the OPC legally, the entrepreneur is relieved from future compliance responsibilities such as filing annual returns, conducting audits, or paying unnecessary fees. Closure also prevents the accumulation of penalties and offers a clean exit route for entrepreneurs who want to start fresh or pursue new ventures without any legal burden.
If the OPC has not carried on business for more than 1 year.
The sole member decides to wind up the company voluntarily.
When MCA orders strike-off due to continuous non-compliance.
If the OPC is not generating profits or business viability.
No need to maintain annual filings, audits, and MCA returns.
Avoid unnecessary expenses in maintaining a non-active company.
Protects the sole member from penalties due to non-compliance.
Clean closure of OPC and freedom for the entrepreneur to pursue new ventures.
Sole member passes resolution to close the OPC.
Affidavit, indemnity bond, and statement of accounts prepared.
File the strike-off application with Registrar of Companies (ROC).
ROC reviews documents and issues closure confirmation.
Closing a One Person Company (OPC) is necessary when it is no longer operational or viable. It prevents legal complications, saves compliance costs, and gives the entrepreneur a fresh start. With Ramdoottax, the closure process is simple, quick, and compliant with MCA regulations.
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