A private limited company can convert itself into an OPC if it has a paid-up capital of less than Rs 50 lakh and a turnover of less than Rs 2 crore per year.
Great Solution offers an entire range of services from the filing of the forms for conversion to the alteration in your Memorandum of Association and Articles of Association.
A private limited company can convert itself into a one-person company (OPC) if it has a paid-up capital of less than Rs 50 lakh, an annual turnover of less than Rs 2 crore, and a nominee. There is a set procedure for doing it, and we will help you comply with all procedural requirements in this context.
In an OPC, in the event of business losses and debts, only the amount invested in starting the business is lost; all personal property of the prompter/director are safe. Whereas in structures such as the Sole Proprietorship, proprietors are personally liable for paying off all debt obligations. So, in case of default on serving debts, the proprietor has to sell his/her personal properties to pay off all liabilities.
A Sole Proprietorship comes to an end on the death of the proprietor. As an OPC is a separate legal entity, it would not cease to operate as the succession right would pass on to the nominee director.
By virtue of having only one director and shareholder, an OPC has fewer annual filings as compared to a Private Limited Company. It has far more reduced work relating to share certificates and maintaining statutory registers.
As per the Companies Act, 2013, a Board Meeting of Pvt Ltd company needs to be called where get in-principal approval of the Directors is obtained for switch over to OPC, followed by an Extra-Ordinary General Meeting (EGM) where the shareholders approve of the said conversion. The Notice of the EGM should be issued to all members, directors and auditors of the company.
The EGM conducted on the due date, must pass a special resolution approving conversion of the private limited company into an OPC.
To file the special resolution passed by shareholders for conversion of private limited company into an OPC, form MGT-14 and form INC-6 should be submitted within a period of 30 days of passing of the resolution with the with the Registrar of Companies (RoC). It should be accompanied with approved fees and necessary attachments such as directors’ declaration by way of affidavit duly sworn in confirming that all members and creditors of the company have given their permission for conversion; that the paid up share capital company is Rs 50 lakh or less and/or average annual turnover is less than Rs two crores; list of members; list of creditors; most recent audited balance sheet; the profit and loss account, and a copy of no objection letter from secured creditors.
After the E-forms and attached documents filed by the company for conversion are found satisfactory by the RoC, the company is issued approval of conversion from private limited into an OPC.
We will provide you with a simple and easy to complete ways to convert your Private Limited Company to One Person Company (OPC). The MCA too has simplified the process for such conversion. You will sail seamlessly through the entire process.
We will help you convert your Private Limited into an OPC at low costs. It will have far lower compliances than a Pvt Ltd Company and would therefore not have to maintain much mandatory filings every year.
The MCA has taken various initiatives to simplify the process for conversion of the structure of a company from one to another. We will let you convert to OPC structure without going through any complex procedural requirements.
We will help you switch over from Pvt Ltd to OPC within 35 working days. During this period all the formalities, from filing conversion forms to alteration of your Memorandum & Articles of Association would be completed in a smooth manner.
By handling all the paperwork for you, we will make your interaction with government authorities as smooth as possible. You will not encounter any difficulties in complying with statutory requirements.
Great Solution’s team of experienced business advisors will handle all your queries about the process to your entire satisfaction. Our efforts would be to ensure that your doubts are cleared before you present them before us.
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