Private Limited to OPC
Name approval and reservation.
Preparation of New MOA & AOA.
Certificate of Incorporation(CIN).
Private Limited to OPC - An Overview
Benefits OF - Private Limited to OPC
The benefits of the conversion of Private Limited Company to OPC are as follows:
Ease in Filing Annual Returns
An OPC involves comparatively less annual and ROC compliance than any other business structure. There is no need for the director to take approval from a Company Secretary for filing the Annual Returns.
Ease in Taking Decisions
Running an OPC is easy as it involves swift and fast decision making than any other business structure.
No AGM Required
The provisions concerning an OPC are not that stringent like of private company. Therefore, holding an Annual General Meeting is not compulsory for a One Person Company.
Documents Required for Private Limited to OPC
1. E-Form MGT 14 – Copy of the Special Resolution is needed to be filed with Registrar 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
- Certified true copy 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
Process for converting a Private Limited Company to a One Person Company in India
- Organize an extra-ordinary general body meeting inviting your members, shareholders, directors, creditors, suppliers and most of those involves with your private limited company on a continuous basis.
- Get the approval – Letter of consent – from the directors so that this conversion can be initiated.
- Obtain “No objection” from the members of your company and your company’s creditors
- Make changes to the Memorandum of Association as well as Articles of Association.
- File the online form INC-6 via the online MCA portal. Upload the letters of consents and other requisite documents when you do.
- If approved, your business entity will go from being a private limited company to a one-person business entity known as a One Person Company.
Frequently Asked Questions
- 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.