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.
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.
Before you're allowed to Private Limited to a One Person Company, you must fit the following criteria
E-Form MGT 14
Copy of the Special Resolution is needed to be filed with the Registrar of Companies with the following attachments:
E-Form INC 6
Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:
The procedure for conversion of a Private Limited Company into a One Person Company model is detailed in the following steps:
Convene an EGM with Board Members
Organize an Extraordinary General Body meeting inviting your members, shareholders, directors, creditors, suppliers, and most of those involved with your private limited company on a continuous basis.
Obtain the Letter of Consent from the Board
Get the approval – Letter of consent – from the directors to initiate this conversion.
Obtain NOC from Creditors
Obtain "No objection" from the members of your company and your company's creditors
Alter MoA and AoA
Make changes to the Memorandum of Association as well as Articles of Association.
Obtain the Letter of Consent
File the online form INC-6 via the online MCA portal. Upload the letters of consent and other requisite documents when you do.
Obtain the Incorporation Certificate for One Person Company
If approved, your business entity will go from 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:
Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to a Private Limited Company to OPC conversion.
So, take your first steps towards this conversion and reach out to us.
Q. Is the conversion of a Pvt Company into OPC possible?
A. Yes. You can facilitate such a service from the Registration. We offer a no-headed seamless solution for Company Conversion to our clients.
Q. Which government authority can convert PVT LTD to OPC?
A. Ministry of Corporate Affairs
Q. What is the procedure for conversion of Private Limited Company to OPC?
A. The procedure for conversion of a Private Limited Company into a One Person Company model is detailed in the following steps:
1. Convene an EGM with Board Members
2. Obtain the Letter of Consent from the Board
3. Obtain NOC from Creditors
4. Alter MoA and AoA
5. Obtain the Letter of Consent
6. Obtain the Incorporation Certificate for One Person Company
Q. Is there a PVT LTD conversion fee to the OPC model?
A. Yes. If you want to know the fee structure for such conversion, connect with the Incorporation Team of the Registrationwala.
Q. Why do some private companies opt for a Pvt Ltd conversion to an OPC model?
A. Sometimes, a business's requirement to run a large enterprise falls short. Also, the directors can pull out of the company for various reasons. Therefore, they chose to concise themselves to a smaller but effective business model such as an OPC to sustain such a business.
Q. What is the difference between OPC, LLP, and PVT LTD?
A. An OPC is a One Person Company single-handledly managed and controlled by a sole director. An LLP is a Partnership arrangement with the features of a featured company, such as limited liability and separate legal identity. A private Limited company is a registered company that keeps the transferability of the shares strictly among its finite shareholders and member. The general public cannot share or trade its stock in the Market.
Q. What are the eligibility criteria for the conversion of a Private Limited Company to One Person Company?
A. Before you're allowed to Private Limited to a One Person Company, you must fit the criteria mentioned in this page's eligibility section.