Essentials on the conversion of Private Limited Company into One Person Company

by Chris G. Digital Marketing Professional Know about Private Limited Company

Any company which have minimum paid up capital of Rs. 1 lakh and is not a subordinate of any Public Limited Company can be said as Private Limited Company. Such kind of firms require two directors and two or more members. They do not have to comply with various provisions made for public limited company. Maximum of 200 members are permissible and they don’t accept public deposits and never invite public to subscribe its shares or debentures.

One Person Company in a Brief

Single person can now establish his/her own company as a One Person Company. Minimum one individual and maximum 15 can be appointed in such kind of organization. Every OPC falls under the purview of Private Limited Company but intend to affix (OPC) in brackets after its registered name.

The conversion of any private company into a One Person Company requires below mentioned state of affairs:-

• A private company excluding a firm registered under section 8 of The Company Act, having paid up share capital of fifty lakhs rupees or less or the average annual turnover during the relevant period is two crore rupees or less may convert itself into a One Person Company by just passing a special resolution in the general meeting.
• Before passing such resolution, the private company needs to obtain No Objection Documentation in writing from associated members and creditors.
• On the other hand, the One Person Company will have to file a copy of the special resolution obtained from a private company, with the Registrar of the Companies within thirty days from the date of passing such resolution in the prescribed form.
• The private company must file an application in the prescribed form regarding the conversion into One Person Company along with the fees as mentioned in the Companies (Registration offices and fees) Rules 2014, with the attachments of some requisite documents.
• On being satisfied and act in accordance with all the requirements stated herein, the Registrar shall issue the Certificate.

At the time of filling an application in the following documents are required :-

A duly confirmed affidavit given by the directors of the private company that states that all the members and creditors of the firm have given their assent for conversion and the paid up share capital of the company is fifty lakhs rupees or less or the average annual turnover is less than two crores rupees.

• A document with the list of all the members and creditors.
• The latest Audited Balance Sheet and the profit and loss statements.
• The copy of No Objection Certificate issued by secured creditors.
• The conversion of a Private Limited Company into One Person Company requires various documentation formalities and set of circumstances. One can take effective support for the same with the help of business registration consultants.

Learn about One Person Company (OPC), the newly introduced form of doing business.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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