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Convert Private Limited Company to One Person Company Process

Step 1
Calculate your assets
Step 2
Get the assets
Step 3
File conversion application
Step 4
Get approval
Step 5
Conversion complete

Convert Private Limited to a One Person Company in India

A private limited company or famously known as LTD is a privately held company. This implies that the business limits owner liability to its shares and limits number of shareholders to 50. It also restricts shareholders from trading shares publicly.

One Person Company is a business entity run by a sole owner with the benefit of limited liability. One Person Company is a separate legal entity from its members, offering protection to its shareholders. Every One Person Company must nominate a member for the Directorial position in the MOA/AOA, in case of absence of the prime Director.

Advantages of One Person Company

Similar to Private Limited Company and unlike Sole Proprietorship, OPC allows limited liabilities.

  • One Person Company is not liable to conduct board meeting or general meetings.
  • One Person Company can attract keen investors who are not interested in Sole Proprietorship owning to the risks it entails.
  • As One Person Company is similar to Private Limited Company; it attracts quality candidates to help in the growth of the Company.
  • Only one Director is required to form the One Person Company.
  • One Person Company is more easily managed as compared to Private Limited Company.
  • Unlike Sole Proprietorship, it provides protection to its shareholders by limiting liability from personal assets.
  • Transferring of shares is easily done in One Person Company, by simply filling the share transfer form and handing over to the buyer of the shares.

Eligibility Criteria to Private Limited to a One Person Company in India

Before you’re allowed to Private Limited to a One Person Company, you must fit the following criteria

·         All the directors should consent to decision to convert

·         Your net worth should be significantly reduced to the point where you can justify this conversion (which is a downgrade to be honest)

·         You must appoint a nominee who, in case of your death or incapacitation, can take charge of your one-person company.

·         You should have the approval of your creditors before you can go through this conversion.

·         Through an affidavit, the directors have to consent that they are willing to relinquish their position so that your private limited company can be converted into a One Person Company.

Documents Required for converting a Private Limited Company to a One Person Company in India

1. E-Form MGT 14 – Copy of the Special Resolution is needed to be filed with Registrar of Companies with the following attachments:

  • Notice of Extra General Meeting (EGM), which is held to gain the approval of Directors for the conversion of the Private Limited Company to One Person Company.
  • Certified true copy of Special Resolution
  • Altered Memorandum of Association
  • Altered Articles of Association
  • Certified true copy of Board Resolution is optional

2. E-Form INC 6 – Application for the conversion of Private Limited Company to One Person Company with the following necessary attachments:

  • List of all members and creditors
  • Latest balance sheet
  • Letter of ‘No Objection’ from the members and creditors
  • Letter of Consent from the Directors by way of affidavit

Process for converting a Private Limited Company to a One Person Company in India

·         Organize an extra-ordinary general body meeting inviting your members, shareholders, directors, creditors, suppliers and most of those involves with your private limited company on a continuous basis.

·         Get the approval – Letter of consent – from the directors so that this conversion can be initiated.

·         Obtain “No objection” from the members of your company and your company’s creditors

·         Make changes to the Memorandum of Association as well as Articles of Association.

·         File the online form INC-6 via the online MCA portal. Upload the letters of consents and other requisite documents when you do.

·         If approved, your business entity will go from being a private limited company to a one-person business entity known as a One Person Company.

Our Assistance to convert your Private Limited Company to a One Person Company in India

We, at Registrationwala provide end to end solutions for conversion from Private Limited to a One Person Company. Our services include:

·         Helping you organize the meeting

·         Assistance with getting NOC of the creditors

·         Filing the application for conversion.

·         Reviewing the application and making changes if needed

·         Ensuring that your business entity is converted as per your requirement.

Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to private limited company to OPC conversion.

So, take your first steps towards this conversion and reach out to us.

 

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