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.
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.
Advantages of One Person Company
Similar to Private Limited Company and unlike Sole Proprietorship, OPC allows limited liabilities.
Before you’re allowed to Private Limited to a One Person Company, you must fit the following criteria
· All the directors should consent to decision to convert
· Your net worth should be significantly reduced to the point where you can justify this conversion (which is a downgrade to be honest)
· You must appoint a nominee who, in case of your death or incapacitation, can take charge of your one-person company.
· You should have the approval of your creditors before you can go through this conversion.
· Through an affidavit, the directors have to consent that they are willing to relinquish their position so that your private limited company can be converted into a One Person Company.
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:
· Organize an extra-ordinary general body meeting inviting your members, shareholders, directors, creditors, suppliers and most of those involves with your private limited company on a continuous basis.
· Get the approval – Letter of consent – from the directors so that this conversion can be initiated.
· Obtain “No objection” from the members of your company and your company’s creditors
· Make changes to the Memorandum of Association as well as Articles of Association.
· File the online form INC-6 via the online MCA portal. Upload the letters of consents and other requisite documents when you do.
· If approved, your business entity will go from being a private limited company to a one-person business entity known as a One Person Company.
We, at Registrationwala provide end to end solutions for conversion from Private Limited to a One Person Company. Our services include:
· Helping you organize the meeting
· Assistance with getting NOC of the creditors
· 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 private limited company to OPC conversion.
So, take your first steps towards this conversion and reach out to us.