Convert Private Limited Company to a One Person Company in India
A private limited company, or LTD, is a privately held company. This implies that the business limits owner liability to its shares and limits the 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 or AoA in case of the absence of the prime Director.
Advantages of One Person Company
Similar to a Private Limited Company and unlike Sole Proprietorship, OPC allows limited liabilities.
No Board Meeting formalities
One Person Company is not liable to conduct board meetings or general meetings.
More Business from Proprietorship
One Person Company can attract keen investors who are not interested in Sole Proprietorship owning to the risks it entails.
Holds reputation in the Market
As One Person Company is similar to a Private Limited Company, it attracts quality candidates to help grow the company.
Single Director Requirement
Only one Director is required to form the One Person Company.
Ease in Management
One Person Company is more easily managed as compared to a Private Limited Company.
Offers Limited Liability to its Member
Unlike Sole Proprietorship, it provides protection to its shareholders by limiting liability from personal assets.
Simple Share Transferability
Transferring shares is easily done in One Person Company by simply filling out the share transfer form and handing it over to the buyer of the shares.