Convert Private Limited Company to One Person Company
3 simple steps, you get
- Documents Review
- Expert guidance and support
- Form MGT-14
- Form INC-6
- Certificate of Conversion
Let's register your One Person Company!
Introduction
Converting a Private Limited Company to a One Person Company (OPC) is a strategic business move that offers certain advantages, particularly for entrepreneurs seeking a more simplified corporate structure. A Private Limited Company, known for its separate legal identity and limited liability, may find the transition to an OPC beneficial, especially when the need for multiple shareholders diminishes or when a single entrepreneur wishes to retain the advantages of a corporate entity. This conversion not only streamlines administrative obligations but also allows for a more flexible approach to ownership and management. In this context, we explore the key considerations and steps involved in converting a Private Limited Company to an OPC, highlighting the benefits and implications of this transformation.
As Bright Accounts, we offer seamless assistance in converting your private limited company to OPC. Our expert team guides you through the entire process, ensuring a smooth transition. From document preparation to filing and compliance, we handle every aspect to make the conversion hassle-free.
The whole process will be managed by a certified Chartered Accountant and Company Secretary
Documents Checklist
We have compiled a detailed list of documents required to convert Private Limited Company to OPC.
Form INC-6 Attachments
- List of Creditors and Members
- Latest Balance Sheet of the Company
- NOC letter of Secured Creditors
- NOC of Creditors and Members
- Declaration through Affidavit
Form MGT-14 Attachments
- EGM Notice
- Special Resolution
- Altered MOA & AOA
- Board Resolution
process
Conversion Process
in 3 Simple Steps
At Bright Accounts, we have simplified the entire conversion process of a Private Limited Company to One Person Company into 3 simple steps. This makes your journey smooth, structured and easy.
- Pre-application
- We collect basic information
- Gather required documents
- Initiate calling of Board Meeting
- Initiate calling for Extraordinary General Meeting
- Drafting & Application
- Obtain No Objection Certificate
- Conduct Extraordinary General Meeting
- Filing of Form MGT-14
- Filing of Form INC-6
- Approval
- Issuance of Certificate of Conversion
Upon acceptance of the conversion application, the relevant Registrar of Companies examines the submission. If complete, the ROC approves the application and issues a certificate, officially converting the Private Limited company into a One Person Company (OPC).
benefits
What's Good
about converting Private Limited Company to One Person Company
Simplified Compliance
OPCs typically have fewer compliance requirements compared to Private Limited Companies. This simplification of regulatory obligations reduces the administrative burden on the business.
Flexibility in Operations
Converting to an OPC allows for more flexibility in day-to-day operations. With a single owner in control, decisions can be made swiftly without the need for extensive consultations.
Continuous Existence
The conversion maintains business continuity, and the OPC can carry on its operations seamlessly even with the transition from a Private Limited Company. This ensures minimal disruption to ongoing business activities.
Access to Funds
Since an One Person Company operates as a private company, fundraising through venture capitals, angel investors, and incubators becomes more accessible.
Limited Liability
Similar to Private Limited Companies, OPCs offer limited liability to the owner. This means that the personal assets of the owner are protected in case of business liabilities or debts.
Smooth Management
Like Sole Proprietorship, a single person can establish and run the OPC. The business management and the decision-making process is quick and effortless.
What do you get
when you work with Bright Accounts
Convert your Private Limited Company to OPC
When you register your Udyam Certificate with the help of Bright Accounts, you not only get the items mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.
- Review of Documents
- Form MGT-14
- Form INC-6
- Issuance of Certificate of Conversion
- Expert advice you can count on
- Our Bright support throughout the process
Prerequisites
This checklist includes everything that you would need to convert Private Limited Company to OPC.
- The paid-up share capital of the private company, at the time of conversion, should not exceed fifty lakhs rupees or such higher amount prescribed.
- The average annual turnover of the private company, during the relevant period, should not exceed two crores rupees or such higher amount prescribed.
- The private company intending to convert into an OPC should not be an existing One Person Company or a Section 8 Company (companies formed for charitable purposes).
- The sole member (owner) of the new OPC must be a natural person and a citizen of India. Only Indian citizens are eligible to form an OPC.
- As per the Companies Act, 2013, and the rules governing One Person Companies (OPCs) in India, a minor cannot be a member or part of an OPC.
Why Bright Accounts
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Bright & Knowledgeable
Bright Accounts delivers high quality financial services by a team of bright and knowledgeable experts.
Always happy to help
Bright Accounts commit to provide dedicated support and assistance to our clients.
Professional & Approachable
We maintain a high level of professionalism while being easily approachable for our clients.
Easy & Quick
We focus on streamlining and simplifying the complex processes for our clients.
Frequently Asked Questions
Like any other company, an OPC can also spend in another company. An OPC is a sub-category of the private limited company and under its status, it can have a stake in another company, and own the same.
Yes. A one person company means that there will be only one shareholder for the company ownership, and in no way impact the ability to hire employees. An OPC can even have multiple directors.
- A one person company is managed by an individual whereas, PLC is managed in a group.
- In a PLC there is no provision to appoint a nominee to a member of the company. In OPC, since there is only one person, in his/her absence the nominee will take the place of the member
- The number of directors in OPC is one. Whereas, there are 2 directors in a private company.
The time limit for converting an OPC into a Private Limited Company depends on the specific legal requirements.
Whether a Pvt Ltd company or an OPC is better depends on your situation. A Pvt Ltd company is good for businesses that plan to grow, need more investment, or have more than one owner. An OPC is great for small businesses with one owner. It simplifies management and reduces paperwork.
Bought Together
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Private Limited Company Annual Compliances
Ensure seamless compliance for your Private Limited Company with Bright Accounts' Annual Compliance Services managed by experts.
Limited Liability Partnership Annual Compliances
Navigate LLP annual compliance effortlessly with Bright Accounts. Our dedicated team ensures timely submission and adherence to rules.
Outsource Accounting & Bookkeeping
Save valuable time, money and labor by outsourcing your accounting and bookkeeping tasks to Bright Accounts experts.