Home / Private Limited to One Person Company (OPC)
One Person Company (OPC) Definition
OPC is a unique business structure that permits a single person to function as a company, giving them the benefits of limited liability while retaining complete control. In an OPC, the individual serves as both the director and shareholder, merging the advantages of a sole proprietorship with the legal protection of a private limited company.
Many persons now days transferring their private limited company into one Person Company. For making conversion from private limited company into one Person Company (OPC), the private limited company must have total paid up capital of Rs.50 Lakhs or its annual average turnover in previous 3 financial years must be Rs.2 crores. OPC also needs a nominee director so that responsibility can be transferred to the nominee director, if the director of the company is unable to manage its business operations. An alteration is also needed to be done in MOA & AOA of the company.
What Is Included In Our Package?
Eligibility Consultation
Document Preparation
Application Drafting
Government Fees
Requirements for Converting Private Limited Company into OPC
- As per section 8 of the company’s act 2013, private limited company should have share capital of Rs.50 Lakhs or annual average turnover of Rs.2 crores in the last three financial years in order to convert their company into OPC.
- The conversion should BE in accordance with the rule 7 of companies (incorporation) Rules, 2014.
- The company should take permission in writing from the existing members as well as creditors at the time of passing a special resolution in the general meeting. The existing members & creditors must have no objection in converting private limited company into OPC.
- For converting a private limited company into an OPC, the company is required to file special resolution with registrar of companies after getting approval from shareholders. Therefore, FORM MGT-14 should be filed along with the documents within 30 days of passing of special resolution with ROC.
Procedure Of Converting Private Company Into One Person Company (OPC)
FAQ’S about Converting Private Company Into One Person Company (OPC)
- 30 days in case of voluntary conversion
- 6 months in case of mandatory conversion
What Clients Say
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