BUSINESS ENTITIES CONVERSION

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Private Limited to One Person Company

Overview
Documents Required
Process

Convert Private Limited Company to One Person Company

A private limited company or famously known as LTD is a privately held company. This implies that the business limits owner liability to its shares and limits number of shareholders to 50. It also restricts shareholders from trading shares publicly. 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. Advantages of One Person Company Similar to Private Limited Company and unlike Sole Proprietorship, OPC allows limited liabilities.

One Person Company is not liable to conduct a board meetings or general meetings.
One Person Company can attract keen investors who are not interested in Sole Proprietorship owning to the risks it entails.
One Person Company is similar to Private Limited Company; it attracts quality candidates to help in the growth of the Company.
Only one Director is required to form the One Person Company.
One Person Company is more easily managed as compared to Private Limited Company.
Unlike Sole Proprietorship, it provides protection to its shareholders by limiting liability from personal assets.
Transferring of shares is easily done in One Person Company, by simply filling the share transfer form and handing over to the buyer of the shares.

Frequently Asked Questions

What is to be done by the company after converting OPC to private limited company?

After the OPC is converted into a Private Limited Company, it is obligatory for the company to increase its paid-up share capital to ₹ 50 Lakh or the annual turnover to ₹ 2 Crore or more. If the company fails to comply with these provisions, it shall covert back itself to an OPC by passing a special resolution.

What are the conditions for converting OPC to a private limited company?

The OPC must convert itself into a Private Company in case of the following situations:
– If the paid-up share capital of the OPC hits more than ₹ 50 lakh.
– If the annual turnover exceeds ₹ 2 crores consecutively for the last three (3) years.

Whether the OPC can voluntarily proceed for its conversion?

Yes, OPC may voluntarily convert itself into a Private Company or Public Company subject to certain condition. The OPC may apply for voluntary conversion only if a period of two years has been passed since its incorporation.

Can an OPC be converted or incorporated as a non profit organization?

NO, an OPC cannot be incorporated as or converted into a company for non-profit, charitable purpose, and it cannot carry out non-banking, financial, or investment activities including investment in securities of any corporate body.

What is the effect after conversion of OPC to a private limited company on the liabilities of the previous company?

After the conversion, the liabilities, debts or obligation of the company shall not be affected in any way. Hence, the company shall be liable for all its previous obligations.

Documents required to convert Private Limited Company to One Person Company

1. E-Form MGT 14 – Copy of the Special Resolution is needed to be filed with Registrar of Companies with the following attachments:

Notice of Extra General Meeting (EGM), which is held to gain the approval of Directors for the conversion of the Private Limited Company to One Person Company.
Certified true copy of Special Resolution
Altered Memorandum of Association
Altered Articles of Association
A certified true copy of Board Resolution is optional

2. E-Form INC 6 – Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:

List of all members and creditors
Latest balance sheet
Letter of ‘No Objection’ from the members and creditors
Letter of Consent from the Directors by way of affidavit

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Private Limited to One Person Company Registration

₹20,499.00

Private Limited to One Person Company in just 10 Days

Never let the businessman see down by giving your business a shining name with Private Limited to One Person Company registration. It is extremely easy to start and run!

Why choose Company registration in INDIA ?

Shields from personal liability and protects from other risks and losses.
A registered company makes it genuine and increases the authenticity of your business.
Procures bank credits and good investment from reliable investors with ease.