Private to One Person Company

A One Person company can be easily managed with less compliance to be followed

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Conversion of Private Company to OPC

Conversion of status of company from private to OPC would become effective form the date of receipt of the approval of the Registrar through the change of name would become effective on the issue of fresh Certificate of Incorporation.

The Companies Act, 2013 was expected to simplify the provisions but on the contrary it brought lot of restrictions on doing business. Therefore the private companies are converting themselves into One Person Company.

A One Person company can be easily managed with less compliance to be followed, conversion of the Sole Proprietor firm or Partnership or Private Limited Company to One Person Company would benefit most people.

Steps to Convert Pvt Ltd to OPC

Procedure for conversion of the Private company into a One Person Company:

  • A private company other than a company registered under Section 8 companies Act 2013, who has a share capital of 50 lakhs rupees or those having an average annual turnover is 2 crore rupees during the relevant period, may convert their private company into a one-person company.
  • This Conversion shall be in accordance with Rule 7 of Companies (Incorporation) Rules, 2014.
  • The company shall obtain a NO objection in writing from existing members and creditors when passing a special resolution in the general meeting.
  • The company is required to file Special Resolution passed by shareholders for Conversion of Private Company into One Person Company (OPC) with a concerned Registrar of Companies. Hence, file form MGT.14 within 30 days of the passing of Special Resolution with the concerned Registrar of Companies with the documents.
  • The following documents should be attached along with fees:
  • The directors of the company shall give a declaration by way of an affidavit duly sworn in confirming that all members and creditors of the company have given their consent for conversion, the paid-up share capital company is fifty lakhs rupees or less or average annual turnover is less than two crores rupees, as the case may be;
    • The list of members and list of creditors;
    • The latest Audited Balance Sheet and the Profit and Loss Account; and
    • The copy of No Objection letter of secured creditors.
  • Concerned Registrar of Companies (ROC) will check the forms and attached documents filed by the Company for Conversion of Private Company into One Person Company (OPC). On being satisfied that Company has complied with prescribed requirements the Registrar of Companies (ROC) shall issue the Certificate to the effect of Conversion of Private Company into One Person Company (OPC).

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