About Conversion of Private Limited Company into One person Company
A Private Limited Company is a type of entity which is privately held by small group of people. One of the main advantages of Private Limited Company is that it limits owner’s liability to their share and restricts shareholders from trading their shares publicly but due to more compliance to be followed by Private Limited Companies than One Person Company (OPC) or other necessary reason like one of the Promoter leaving the organization, there might be necessary requirement for converting a Private Limited Company into One Person Company (OPC) as in case of Private Limited Companies, there should be at-least 2 subscribers.
Company Conversion Process
|Filing of Application
3 to 5 Working Days
Drafting of basic documents including MOA and AOA
5-7 working days
|Processing of Application and work completion
15-20 working days
Advantages of conversion of Private Limited Company into One Person Company
Simple Conversion Process
One Person company can be converted into Private Limited Company, by complying with the prescribed limited formalities of the Companies Act, 2013.
One person company could be managed easily as compared to Private Limited Company.
Compliance’s after incorporation in One person Company bis less as compared to Private Limited Company
Frequently Asked Questions (FAQs)
0.1 How Registration SEVA can help with conversion of Private Limited Company into One person company?
Registration SEVA can help in conversion of Private Limited company into One person company in 20 to 25 working days, subject to ROC processing time.
0.2 How many directors are required to incorporate a one person company?
You can incorporate One person company with 1 director only.
0.3 How much money do I need to start a One person Company?
For conversion of Private Limited Company into one person company, no minimum capital is required. You can proceed with conversion with the existing capital.
0.4 Is there any other formality that needs to be complied with?
Yes, One needs to appoint nominee who can be any individual and holds proper identity proofs such as PAN card, Adhaar Card etc.
0.5 Will the change of status have any legal effect?
The conversion will not affect any rights or obligations of the company and any legal proceedings by or against the company.
0.6 Documents & Information’s Required to Process?
- Altered Memorandum of Association
- Altered Articles of Association
- Notice of EGM along with Explanatory Statement
- Certified Copy of Special Resolution
- Certified Copy of Board Resolution (Optional attachment)
- Certified Copy of Special resolution (Optional attachment)
- Affidavit by all the Directors of the Company stating that the paid up capital during the relevant period is less than INR 50 Lakhs or whose average annual turnover is less than INR 2 Crore and all the members and creditors of the Company have given their consent for conversion.
- Latest Financial Statement
- Altered Memorandum of Association and Articles of Association
- Certified Copy of Board Resolution for conversion and authorizing any of the Director for giving notice of EGM
- List of members and creditors
- No objection certificate from secured creditors
- Consent of Nominee in Form INC-3
- PAN, ID and Address Proof of Members and Nominee
MGT-14 is mandatorily required to be filed before filing INC-6 as SRN of the same have to be entered in INC-6. Further, after filing INC-6 the department will verify all the documents and after being satisfied that all the documents filed by the Company are accurate, it will issue new Certificate of Registration for giving effect to Conversion of Private Limited Company into One Person Company (OPC).