PROCEDURE TO CONVERT OPC TO PRIVATE LIMITED

AS PER COMPANIES ACT 2013, TWO METHODS TO CONVERT ONE PERSON COMPANY (OPC) INTO PRIVATE LIMITED ARE AS FOLLOWS:

  1. Voluntarily conversion
  2. Mandatary conversion

As per rule 6 of the Companies (Incorporation) Rules, 2014, prescribe parameters for mandatory conversion of One Person Company (OPC) into Private Limited under Companies Act 2013 is as follows:

  1. Effective date of increase in the paid up share capital more than ? 50,00,000 (fifty lacs rupees)
  2. or
  3. Increase of average turnover during the period of immediately preceding three consecutive financial year is more than ? 2,00,00,000 (two crore rupees).

Any One Person Company (OPC) meets anyone of the above parameter, then One Person Company (OPC) shall be mandatorily required to convert itself to Private Limited within a period of six months.

MANDATORY STEPS TO BE TAKEN TO CONVERT OPC INTO PRIVATE LIMITED:

As per rule 6 of the Companies (Incorporation) Rules, 2014, prescribe parameters for mandatory conversion of One Person Company (OPC) into Private Limited under Companies Act 2013 is as follows:

MANDATORY STEPS TO BE TAKEN TO CONVERT OPC INTO PRIVATE LIMITED:

As per the rule 6 of the Companies (Incorporation) Rules, 2014, the following steps to be followed while converting One Person Company (OPC) into Private Limited

1. Calling for Board Meeting: As per the section 173(3) of the Companies Act 2013, issue notice and SS-1 for convening a meeting of the Board of Directors.

2. Agenda of Board Meeting:

  • To get in-principal approval of Director for increasing shareholder and director (Minimum of 2)
  • To get in-principal approval of Shareholder for alteration in MOA and AOA of Company.

3. Forms to be filed with RoC : INC-6 – As per section 18 of Companies Act 2013, OPC has to file within 30 days of passing of Special resolution.

ATTACHMENTS:

  • Certified true copy of resolutions
  • Altered copy of MoA and AoA
  • Copy of duly attested lastest financial statements.

Note: As per section 122(1), Companies Act 2013, there is no need to hold EGM by OPC for conversion of OPC into Private Limited. The passed resolution has to communicated by the member of the company and entered into the minutes books (Section 188, Companies Act 2013) and signed by member with the date. Such a date shall be the date of the meeting for all the purpose under Companies Act 2013.

After completion of Conversion new company to require to do the following procedures

  • Applying for new PAN Card
  • Surrender the Old PAN Card
  • New Stationaries with new name of the Company, CIN, MOA and AOA
  • Communicate to the debtors and creditors
  • Update company bank account and concern authorities like excise, sales, service tax

May Known As More for OPC

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What is LLP?

Limited Liability Partnership (LLP), consortium of flexibility of partnership and the advantages of limited liability of a company at low compliance cost. In simple words LLP means body of corporate with mutually agreed agreement as like in partnership.

What is Pvt Ltd?

Company means a voluntary association formed and organized to carry on a business. In India Company means a company incorporated under Companies Act, 2013 or Companies Act, 1956 or under any previous company law.

What is LTD?

Bass Biz suggest to entrepreneurs who are interested to do business and raise capital through various sources can kick start their business as Pvt Ltd.In India Company means a company Companies Act, 1956 or under any previous company law.

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