One Person Company is a separate legal entity from its promoter, run by a sole shareowner, with the benefit of limited liability. One of the biggest advantages of a One Person Company (OPC) is that there can be only one member in a OPC.
Every One Person Company must nominate a nominee Director in the MOA and AOA of the company – who will become the owner of the OPC in case of absence of the sole Director.
it is important for the Entrepreneur to carefully consider the features of a One Person Company prior to incorporation. A One Person Company must be converted into a Private Limited Company if it crosses an annual turnover of Rs.2 crores.
Requirements for closing One Person Company
One Person Company closing is either voluntary or by the tribunal. A One Person Company, which has been inoperative for more than a year from its date of incorporation, is eligible to apply for closing of the Company.
It is necessary to file closing application with the Registrar. The closing application needs to be updated and the Company is free from all legal compliances and officially closed.
Procedure for One Person Company Closure
The following documents are required to close a One Person Company.
- Application for Striking off of the One Person Company
- Board Resolution for closure
- Consent of Directors
- Director’s Affidavit
- Indemnity Bond
- Statement of Assets and Liabilities, indicating the sold of assets and cleared debts must be submitted.
The application must be filed with the Registrar within 30 days of signing the statement of assets and liabilities.
IS FILING AN APPLICATION OF CLOSING WITH REGISTRAR A MUST?
Yes, it is necessary to file closing application with the Registrar as it needs to be updated. The Company is free from all legal compliance and officially closed afterward.
WHAT IS THE TIME LIMIT TO FILE THE CLOSING OF ONE PERSON COMPANY DOCUMENTS TO REGISTRAR OF COMPANIES?
The form has to filled and filed with Registrar office within 30 days from the date of signing of the Statement of Assets and Liabilities.