How to Convert a Private Limited Company into One Person Company?
In this post, we will discuss how to convert Pvt Ltd Company into OPC. We will also discuss about the documents and formalities required to do so.
Requirements for Conversion:
The conversion of Private Limited Company into One Person Company (OPC)
is explained in Rule-7 or Companies Act 2014. The rule states that any company registered under Companies Act 2013, Section-8 can be converted into an OPC if:
- The company has a share capital of Rs. 50 Lakh, or
- The company has an annual turnover of Rs. 2 crore or more
Process of Converting Private Limited Company into an OPC
While converting a private limited company into an OPC, the director has to submit several documents and has to follow some steps, as mentioned below:
- The company has to submit the No-objection letter from existing members and creditors.
- The company has to submit a special resolution form passed by shareholders. This form should clearly mention that all shareholders agree for the conversion. The MGT-14 form along with other documents must be filed to Registrar of Companies within 30 days of application.
- Other documents which has to be submitted to the registrar are:
- A Sworn Letter duly signed by the director mentioning that all members and creditors have given their consent for the conversion.
- The list of members and creditors of the company
- Latest audited balance sheet of the company
- No-objection certificate by the members and creditors
- Requisite fees for the conversion
- The concerned Registrar of Companies will examine the forms and documents. On successful verification, the director will receive a confirmation certificate which will convert the Private Limited Company into One Person Company.
- Considering the complexity of this process, it is always beneficial to hire a specialist who can help you in this process. Company-registration.in is one such firm which has a team of experts who will help you with converting your private limited firm into OPC in minimum possible time.
Posted by Anita Aswal - 4th June 15