Winding up One Person Company
One Person Company is a business entity run by a sole owner with the benefit of limited liability. One Person Company is a separate legal entity from its members, offering protection to its shareholders.
Every One Person Company must nominate a member for the Directorial position in the MOA/AOA, in case of absence of the prime Director.
Requirements for closing One Person Company
Closing of One Person Company is either voluntary or by the tribunal. Any One Person Company, which has been inoperative for more than a year from its date of incorporation, can apply for closing of the Company.
It is necessary to file closing application with the Registrar as it 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 to be submitted to close a One Person Company.
- Application for Striking off of the One Person Company – The Company that wishes to close must file a closing application with the Registrar
- Board Resolution for closure – The One Person Company must submit the resolution of closing approved by the board members
- Consent of Directors – A letter of consent from the Directors stating their opinion to close the One Person Company must be submitted.
- Director's Affidavit
- Indemnity Bond
- Statement of Assets and Liabilities – A financial statement indicating the sold of assets and cleared debts must be submitted.
The application of closing the One Person Company must be filed with the Registrar within 30 days of signing the statement of assets and liabilities.