Convert OPC to Private Limited Company
An OPC must have a minimum of two directors and two members in order to become a private limited company. Additionally, the modification of the OPC’s Memorandum of Association (MOA) and Articles of Association (AOA) must be approved by a board decision.
Served Over 8000 Startups and MSMEs
4.6/5 Google Review
A policy of 100% satisfaction guaranteed
INTRODUCTION
Do you know about the conversion of an OPC to a Private Limited Company?
A One Person Company’s conversion to a Private Company may provide opportunities to explore further advantages like fund raising. Without meeting the requirements for average annual turnover and paid-up share capital, an OPC may choose to voluntarily change into a PLC. The Central Government receives the application for conversion following the OPC’s swapping of the MoA and AoA. Both the company’s rights and responsibilities remain in effect following the conversion, as does its legal existence. Its conversion to a private company requires the appointment of at least two directors and shareholders in order to meet the minimal criterion. Growth prospects and other funding possibilities such as ESOP, private placement investment, and many more are aided by conversion.
ADVANTAGES
Advantages of Conversion of OPC to a Private Limited Company
Easier to Raise Funds
A private limited company can acquire money in a variety of methods, including through private equity, an employee stock purchase plan (ESOP), and other means. This makes financing capital for the firm fairly simple.
Limited Liability of Owners
The owner's personal assets are not charged in relation to the company's obligations or debts. Their liability is capped at the capital they subscribed but did not pay.
Taxation Benefits
Due to its lack of recognition under the Income Tax Act, One Person corporations are taxed in the same manner as other corporations. The 30% total income tax rate now applies to private businesses. Due to the significant financial burden that a one-person company causes, the notion of one person companies becomes less lucrative when considering taxes.
Separate Legal Existence
In the perspective of the law, a Private Limited Company is created, distinct from its owners and management, upon registration. In its own name, the business is able to do business, possess assets, create bank accounts, and sign contracts with third parties. You may also file a lawsuit against other people using this.
A LIST OF DOCUMENTS
Documents Required to Convert an OPC to a Private Limited Company
PAN Card
PAN Card of all partnersForeign nationals may provide passport
Identity Proof
All partners' Aadhar cards, voter IDs, passports, and driver's licenses
Photograph
Latest Passport size photograph of all partners
NRI
For NRIs or foreign nationals, the partner's paperwork must be notarized or apostilled.
Address Proof
Current Bank Account Statement for Directors and Shareholders; Telephone Bill; and Electricity Bill
Financial Statements
Certified copy of latest audited financial statements
Incorporation documents of the OPC
Certificate of Incorporation, MoA, and AoA will be given.
Do you require help? Fear not—experts are on hand to assist!
Dial : 9084890415 or send an email to support@trademarkregistration.site
to reach us.
Convert OPC into Private Company in 3 Easy Steps
1. Respond to Quick Questions
- Our questionnaires take less than ten minutes to complete.
- Give the essential information and paperwork needed to convert a proprietorship to a partnership.
- Pay using a safe and secure payment gateway.
2. Experts are Here to Help
- Dedicated Relationship Manager
- Procurement of Digital Signatures (DSC)
- Approval from Central Government for Voluntary Conversion
- Increase in the Authorized Share Capital
- Alteration of MoA & AoA
- Application for PAN and TAN
3. Your Company is Registered
- All it takes is up to 20 working days*
Process of converting OPC to Pvt. Ltd.
Day 1-2
- Consultancy and assistance for conversion
- Collection of basic information & documents
- Application of DSC of new director
Day 3-8
- Drafting of necessary resolutions
- Drafting of other required documents & affidavit
- Alteration of MoA & AoA
- Provide required documents drafted after the signature
Day 9 – 15
- Online submission of forms for changes in the MoA and AOA
- The time it takes the government to approve an application*
Day 16 onwards
- Online submission of form INC-6 for voluntary conversion.
Explore one person company to private limited company conversion
Frequently Asked Questions
- There are no such requirements as stated in Rule 6 of the Companies (Incorporation) Second Amendment Rules, 2021. Nevertheless, the following conditions were in place prior to the second amendment regulations, 2021:
– Should the OPC’s paid-up share capital surpass ₹ 50 lakh.
– If, for the previous three (3) years in a row, the annual turnover has exceeded ₹ 2 crores.
Yes, OPC may freely change its status to that of a Private or Public Company if it meets the necessary requirements. Two directors and shareholders are required in the case of a private limited company. According to the Companies Act of 2013, a public corporation must have at least three directors and seven shareholders.
NO, an OPC is not permitted to engage in non-banking, financial, or investing activities, including the purchase of securities from any corporate entity, or to be incorporated as or changed into a business for non-profit, charitable purposes.
- The company’s obligations, debts, or liabilities won’t change in any manner following the conversion. Therefore, the business will be responsible for all of its prior debts