Private Limited into OPC

OPC provides a whole new bracket of opportunities for those looking to start their own ventures with an organized business structure.

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    Private Limited into OPC

    What is OPC? An OPC is a hybrid structure, wherein it combines most of the benefits of a sole proprietorship and a company form of business. It has only one person as a member who will act in the capacity of a director as well as a shareholder.

    One person company is a new concept in India which has been introduced by the companies act 2013. In the old Companies act 1956 a minimum of two directors and shareholders were required to form a private limited company. However in case of a One person company, only 1 person is required who can be a shareholder as well as the Director. Hence the name, One Person Company.

    Documents Required For Private Limited To OPC

    • Arrange new PAN No. of the company
    • Printed copy of new MOA & AOA.
    • Arrange new stationary with new name of the Company
    • Update company bank account details
    • Intimate all the concerned authorities like Excise and sales tax etc about the status change

    Process For Private Limited To OPC

    A private limited company can be converted into OPC only if it has not more than 50 lakh rupees paid up share capital or average annual turnover is 2crores or less during the immediately preceding 3 financial years.

    Board Meeting: Board meeting has to be convened by issuing proper notice to get, in-principal approval of directors for conversion of the company to OPC, fix time and place of EGM to get shareholders’ approval, to approve notice of EGM along with Agenda, to authorize director or company seretary to issue EGM notice.

    Company shall also obtain NO objection certificate from existing members and creditors.

    EGM notice should be issued atleast 21days before the EGM to all the directors, members and auditors of the company.

    EGM is convened and shareholders approval through special resolution is obtained for conversion into OPC.

    Company is required to file Special Resolution passed by shareholders for Conversion of Private Company into One Person Company (OPC) with concerned Registrar of Companies. Hence, file form MGT.14 within 30 days of passing of Special Resolution with the concerned Registrar of Companies, with prescribed fee and attachments.

    The company shall file an application in Form No.INC.6 for its conversion into One Person Company along with prescribed fee and attachments

    Concerned Registrar of Companies (ROC) will check the E-forms and attached documents filed by the Company for Conversion of Private Company into One Person Company (OPC). On being satisfied that Company has complied with prescribed requirements the Registrar shall issue the Certificate to the effect of Conversion of Private Company into One Person Company (OPC).

    What’s included in package?

    Frequently Asked Questions

    Can an Indian citizen who is living abroad allowed forming One Person Company?

    No. As per the Act, Only Indian born citizens can form a One Person Company. Non-resident Indians or individuals who do not reside in India for over 182 days cannot incorporate a OPC.

    Is Foreign Direct Investment allowed for One Person Company?

    No, FDI is not allowed for One Person Company, if it is, then it will lose its One Person Company status.

    Can a foreigner/ NRI become Nominee of One Person Company?

    No, the Act clearly states that, the nominee should also be an Indian resident citizen.

    What if, if the turnover of the company exceeds Rs.2 Crores?

    As per the Act, the average annual turnover during the relevant period should not exceed Rs.2 Crores. If it exceeds, then the company automatically get converted to a Private Limited Company.

    Can OPC become a member of another private Limited company?

    The Act has not made any restriction for a One Person Company to become a member of another Private Limited Company.

    What if, a nominee of one OPC becomes nominee of another OPC?

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