Conversion of One Person Company to Private Company
Q.1 Can OPC be converted into private limited company?
A.1 OPC can be converted in to Private Limited after two years of setup, or even before that if its turnover is more than Rs 2 crore and paid share capital surpasses Rs 50 lakhs in a financial year,
Q2. Can OPC be converted into Section 8 company?
A.2 OPC cannot be incorporated or converted into a company under section 8 of the Act. OPC cannot carry out Non-Banking Financial Investment activities including investment in securities of any other body corporate
Q.3 Can OPC have 2 directors?
A.3. new concept has been introduced in the Company’s Act 2013, about the One Person Company (OPC). In a Private Company, a minimum of 2 Directors and Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously.
The legal provisions governing the Conversion of Private Company into OPC are as follows:
The following are the conditions for Conversion of Private Company into OPC:
The procedure followed for the Conversion of Private Company into OPC is as follows:
For the purpose of Conversion of Private Company into One Person Company (OPC), certain e-Forms are to be filed with the concerned Registrar of Companies (RoC). The forms to be filed with the concerned Registrar are as follows:
After passing of the Special Resolution in EGM, Form MGT-14 should be filed with the RoC. The Form MGT-14 should be filed with RoC within 30 days of passing of the Special Resolution. The following attachments should be made with the Form MGT-14:
The application for the Conversion of Private Company into OPC should be filed to the RoC. The application should be filed in Form INC-6 with the following attachments:
Once the Registrar of Companies (RoC) is satisfied that the Private Company has complied with the prescribed requirements, should Issue of Share Certificate for the Conversion of Private Company into OPC.