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Convert One Person Company to Private Limited Company

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.

private limited company or famously known as LTD 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.

Advantages of Private Limited Company 

  • The liability of shareholders is limited to their shares. a part of to be able to minimize them and sustain the business progress is imperative. In an LTD, if due to any reason the company were to be shut the shareholders would not risk losing their personal assets.
  • Risk of takeovers is minimized when two shareholders trade shares as the selling and buying of shares is possible only when both parties have given their consent.
  • Private limited companies are incorporated; hence it continues to exist even if the owner dies.
  • The capital or options of raising investment in business to one person, which is the case in Sole Proprietorship.
  • Private limited companies pay corporate tax on their profits. Dividends that the shareholders receive are not taxed. Taxes are determined as per their personal income tax rate.
  • Private limited companies can attract high-caliber employees that offer great help in the growth of the company.

Documents required to convert One Person Company to Private Limited Company 

Mandatory Conversion: The conversion of One Person Company Private Limited Company becomes mandatory when

  • The paid capital of a One Person Company exceeds Rs.50 lakhs
  • Increase the average annual turnover during the period of three consecutive financial years is Rs.2 .

The following documents are then required for the conversion.

1. E-Form INC 5 – Copy of the Resolution is needed to be filed with of Companies with the following attachments:

  • Certified true copy of Board Resolution
  • Latest balance sheet with other financial statements
  • Certificate from a Chartered Accountant for calculation of average turnover during the relevant period

2. E-Form INC 6 – Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:

  • List of all members and creditors
  • Latest balance sheet
  • Letter of ‘No Objection’ from the members and creditors
  • Letter of Consent from the Directors by way of affidavit

Voluntary Conversion: The conversion of One Person Company Private Limited Company can be voluntarily done when the One Person Company completes two years from the date of incorporation.

The following documents are then required for the conversion.

1. E-Form MGT 14 – Copy of the Special Resolution is needed to be filed with of Companies with the following attachments:

  • Notice of Extra General Meeting (EGM), which is held to gain the approval of Directors for the conversion of the Private Limited Company to One Person Company.
  • Certified true copy of Special Resolution
  • Altered Memorandum of Association
  • Altered Articles of Association
  • of Board Resolution is optional

2. E-Form INC 6 – Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:

  • List of all members and creditors
  • Latest balance sheet
  • Letter of ‘No Objection’ from the members and creditors
  • Letter of Consent from the Directors by way of affidavit

FAQs

One Person Company cannot be converted to into any other kind of Company until after two years from the date of incorporation of the OPC. However, in case the capital increases beyond Rs.50 lakhs or the annual average turnover exceeds Rs.2 crores. The OPC will cease to exist and then it must be converted to Private Limited Company within a period of six months

A Private Limited Company cannot convert itself into a One Person Company until the capital is more than Rs.50 lakhs or annual turnover is more than Rs.2 crores in the relevant amount of time.

The following steps must be taken care of after the conversion:

  • Arrange a new PAN card for the company
  • Update Company account details
  • Make the necessary changes in Altered Memorandum and Articles of Association

OUR SERVICES

Private Limited Company

INR 7,999/-

One Person Company

INR 6,999/-

FSSAI Registration

INR 4,999/-

Section 8 Company

INR 29,999/-

Trademark Registration

INR 6,499/-

Trademark Objection

INR 2,999/-

Trademark Renewal

INR 1,999/-

Trademark Restoration

INR 2,000/-

Annual Compliances for Private Limited Company

INR 19,999/-

LLP Annual Compliance

INR 9,999/-

ROC Annual Filing

INR 19,999/-

Change in Name of the Entity

INR 4,999/-

Change of Place of the Company

INR 2,499/-

Increase in Authorized Capital of Company

INR 4,999/-

Change of Director or Partner

INR4,000/-

ISO Registration

INR 19,999/-

Import Export Code Registration

INR 3,999/-

Import Export Code Registration

INR 3,999/-

DOT OSP Registration

INR 29,999/-

OUR MEDIA

Find a plan that’s right for you

Whether you’re looking to create just one project, or multiple project, we have a plan that will best match your needs.

ONE PERSON COMPANY
INR 6,999/-
Sole Promoters

1 Director & 1 Nominee

Not Required

Few Tax Advantages

Moderate Compliances

7-8 Days

PRIVATE LIMITED COMPANY
INR 7,999/-
Startups and Small Companies

2 Shareholders/Directors.

Not Required

Few Tax Advantages

Stringent Compliances

7-8 Days

LIMITED LIABILITY PARTNERSHIP
INR 7,499/-
Professionals

2 Partners

Not Required

Few Tax Advantages

Less Compliances

15-25 Days
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