How to Convert One Person Company into Private Limited Company?

Every person who registers an OPC eventually dreams of converting it into a Private Limited Company. This is due to the reason that a Pvt. Ltd. Company has better reputation and more exposure in the business world and is the most popular form of companies across the world. If you wonder how to convert opc into pvt ltd company, this guide will help you.

One thing you must remember that before planning to convert your OPC into a private limited firm, you must meet certain requirement. Generally, an OPC cannot be converted into a Pvt Ltd company if it has not completed two years of incorporation. The conversion procedure is explained in Companies Act 2013, under section 18 and Rule 7(4), which requires following steps:

Meeting the Necessities:

A company registered as an OPC can be converted into another form by presenting a Memorandum and Article of the company. The registrar, who is responsible for the conversion procedure, makes sure that the OPC meets the minimum criteria of a private limited company which is either completing two years as an OPC or having paid average annual shares of Rs. 50 Lakh or less or having an annual turnover of Rs. 2 crores.

No-obligation Certificates:

Next step is making sure that all shareholders and directors of the company are willing to convert it. To do this, the owner has to present a No-obligation Certificate duly signed by all shareholders and directors of the company.

Filing the Application:
After that, the director has to file a conversion application in Form No INC-6 and requisite fee. There are several documents which are needed to be submitted such as:
E-Form Filling:

There are basically two types of conversions, namely Voluntary Conversion and Compulsory Conversion. You need to fill different forms for each. For Voluntary Conversion, you need to file MGT-14 and for Compulsory Conversion, you need to file INC-5.

It is always better to seek the help of a registration company for conversion of one person company (OPC) into private limited company. is one of the most reputed service providers to help you with converting your OPC into a Private Limited Company. Seek their professional services and get your conversion done at most affordable prices.

Posted by Anita Aswal - 20th May 15

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