Want to convert Private Limited Company to One Person Company (OPC)?
A Private Limited Company can be easily converted into One Person Company under the Companies Act, 2013. One Person Company gives all the benefits of Private limited company with a separate legal entity. This is a new concept in India. One Person Company means a company which has only one member.
A Private Limited company who’s paid up share capital is of Rs.50 lakhs or less or whose annual turnover is Rs. 2 crores or less may convert it into One Person Company.
If a Private Limited Companies paid up share capital is more than Rs. 50 lakhs or annual turnover is more than Rs. 2 crores cannot convert its company to One Person Company.
Procedure for conversion:
- A Board Meeting to be conducted for approval of all Directors before the conversion of private limited company to One Person Company.
- A special resolution need to be passed for Extra Ordinary General Meeting to obtain approval of conversion from the shareholders.
- File for conversion
- Registrar will check all the documents and if satisfied issue a Certificate for conversion of Private Limited Company to One Person Company.
Advantages of conversion:
- Limited Liability
- Flexible in Management
- Reduced taxation burden
- Less Compliance