Any existing Private Limited Company (except a company registered under the Section 8 of the new Indian Companies Act of 2013), which could be engaged in any of the broad economic sectors of manufacturing or production, business & commerce, professions, and services, may opt for its conversion into a One Person Company (OPC), based on certain private, commercial, or managerial reasons. To help such private limited companies desirous of being converted into the one person companies, this web-page of ours internationally reputed law firm of Delhi, has been meticulously prepared.
The whole conversion procedure will be carried out in strict accordance with the rules and provisions given in the Section 18 of the Indian Companies Act of 2013, and the Companies (Incorporation) Rules of 2014 [CR-2014], particularly the sub-rules of the rule 7 of the CR-2014. For such a conversion, the applicant private limited company must have the total paid-up capital considerably less than Rs. Fifty Lacs (INR 50 Lacs), OR its Average Annual Turnover in Three immediately preceding financial years must be notably less than INR 2 Crores (Rs. 2 Crores). Here, it must be noted that in case the total paid-up capital of the desirous private limited company is in close vicinity to or equal to Rs. 50 Lacs; Or its average annual turnover being in close proximity to INR 2 Crores, then the newly formed OPC will again have to change itself to a private or public limited company in adjacent future [as per the rules 6(1 & 2) of the CR-2014]. Again, any such conversion of private limited company into one person company (opc) will not affect the prior debts, liabilities, or contracts of the private limited company; and these will be necessarily discharged by thus newly formed OPC also.
For forming an OPC, only One Director and One Shareholder/Subscriber, are needed; the director and shareholder can also be the same person. Again, a Nominee must be nominated at the time of registration in Form INC-3. The proposed director of the OPC must have DIN and DSC. Also, the director should be a citizen of India, or a resident of India who stayed at least 182 days in the immediately preceding financial year, anywhere in entire India. Lastly, there is no necessity to change the location or the registered office of the prior private limited company.The following processes describe how to convert pvt ltd company into opc, anywhere in whole India:
After observation and verification of the documents and facts extended to, the ROC will issue the certificate of conversion only after being fully satisfied.