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/AOA, in case of absence of the prime Director.
A private limited company or famously known as LTD is a privately held company. This implies that the business limits owner liability to its shares and limits number of shareholders to 50. It also restricts shareholders from trading shares publicly.
Advantages of Private Limited Company
Before you’re allowed to One Person Company to Private Limited Company, you must fit the following criteria
· There should be at least two directors
· There should be at least two shareholders
· The paid-up share capital should be more than INR 50 lakhs.
· In case the paid-up share capital is not more than INR 50 lakhs, the average annual turnover within 2 months should be more than 2 crores.
Mandatory Conversion: The conversion of One Person Company to Private Limited Company becomes mandatory when
The following documents are then required for the conversion.
1. E-Form INC 5 – Copy of the Resolution is needed to be filed with Registrar of Companies with the following attachments:
2. E-Form INC 6 – Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:
Voluntary Conversion: The conversion of One Person Company to Private Limited Company can be voluntarily done when the One Person Company completes two years from the date of incorporation.
The following documents are then required for the conversion.
1. E-Form MGT 14 – Copy of the Special Resolution is needed to be filed with Registrar of Companies with the following attachments:
2. E-Form INC 6 – Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:
The process to convert a OPC to a private limited company is as follows:
· Intimate the Registrar of Companies that you now require to convert your One Person Company into a Private Limited Company on voluntary or mandatory basis.
· Appoint at least one director to head the company alongside you. They can also act as your co-shareholder.
· Organize a general body meeting and pass the resolution to raise the paid-up capital of your company (in case it’s needed).
· Pass a board resolution to make changes to the Memorandum of Association and Articles of Association.
· Convene a general body meeting and obtain “No objection” from your company’s creditors
· Make changes to the Memorandum of Association as well as Articles of Association.
· File the online e-form via the online MCA portal to start the process of company conversion
We, at Registrationwala, provide end to end solutions for conversion from One Person Company to a Private Limited Company. Our services include:
· Assistance with director's appointment.
· Assistance with acquiring the NOC
· Doing the necessary tasks needed to alter MOA and AOA.
· Filing the application for conversion.
· Reviewing the application and making changes if needed
· Ensuring that your business entity is converted as per your requirement.
Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to One Person Company to Private Limited Company.
So, take your first steps towards this conversion and reach out to us.