Conversion of an OPC to a Private Company
According to Section 18 of the Companies Act of 2013, and Rule 7 of the Companies (Incorporation) Rules of 2014, an OPC can be converted into a Private Limited Company by changing its Memorandum of Association and Articles of Association. There are two ways to convert an OPC into a Private Limited Company–
1. Voluntary Conversion of OPC into Private or Public Limited Company
2. Compulsory or Mandatory Conversion of OPC into Private Limited Company
1. Voluntary Conversion of OPC into Private Limited Company An OPC cannot voluntarily change to a Private Limited Company until two years have passed from the date of establishment of the OPC. Following the alteration of the OPC’s MOA and AOA, an application is filed to Central Government for conversion. The legal existence, rights, and obligations of the Company remain unchanged following the Conversion. In order to meet the minimal requirements of a Private Limited Company, at least two shareholders and two directors must be appointed. Within 60 days, the OPC must notify voluntary conversion to the ROC through E-Form INC-5.
2. Compulsory or Mandatory Conversion of OPC into Private Limited Company The OPC is required to establish a private limited company if: the paid-up share capital reaches Rs. 50 lakhs, or the average annual turnover during the relevant period surpasses Rs.2 crore. Such a company must change to a private or public limited company within 6 months of the above-mentioned conditions.
Procedure for Conversion of OPC into Private or Public Company
1. Convene a Meeting of the Board of Directors
a. Issue seven days’ prior notice to all directors of the company to discuss regarding conversion of OPC into Private or Public Limited Company. If there is an urgent business matter, shorter notice may be given.
b. Hold a meeting of the Board of Directors of the Company and pass the necessary Board Resolution.
2. Appointment of Directors in accordance with the conversion business structure chosen
One Person Company (OPC) shall endeavor for the appointment of directors as per the minimum statutory requirements viz two or three as the case may be.
3. Alteration to Articles and Memorandum pertaining to the Rule 6(1) of the 2014 Companies (Incorporation) Rules
The memorandum and articles of the One Person Company (OPC) shall be altered by passing a resolution in accordance with section 122(3) of the Act to give effect to the conversion
4. Holding of shareholder’s meeting
Holding of Shareholders meeting and passing of resolution for Conversion of OPC into Private or Public Company.
5. Filing of Form MGT-14 with ROC
Company shall file a copy of the Special Resolution with the Registrar of Companies (ROC) in form MGT-14 within 30 days of passing such resolution.
6. Filing of Application for Conversion of OPC into Public Company or Private Company in Form INC -6 with ROC.
In accordance with section 18 of the Act, the One Person Company or the OPC must submit an application in Form No. INC 6 within six months of a required conversion.
7. Issuance of New Certificate of Incorporation by ROC.
On approval of Form INC-6, the Registrar will issue a fresh Certificate of Incorporation with the Changed name to the applicant company.
How S.K. Agrawal & Co. Helps in Conversion of OPC into Private or Public Limited Company?
With S.K. Agrawal & Co., you can convert your OPC into Private or Public Limited Company seamlessly. You can convert your OPC in just 4 simple steps:
Step 1: Confirmation Mail Acceptance of our Proposal
Send confirmation mail at our email id regarding acceptance of our Proposal for Conversion of OPC into Private or Public Limited Company. You can request a callback or directly call to our expert on phone number provided at our website. Our experts will contact you and clear all your queries.
Step 2: Send the Documents on our Email Id
Send below-mentioned documents on our email Id to convert your OPC:
- Passport size photos of directors
- PAN Card or Passport in case of NRIs and Foreign National
- Address proof of directors
- Specimen signature
- Self-declaration about your directorship in other Companies/LLP
- Rent agreement of your registered office
- No objection certificate from the owner of the property of the property
- Any other document/information required for conversion
The Conversion of OPC from S.K. Agrawal & Co. is completely online and thus, you can save time and money as you need not have to visit our office. If you want to visit to our office you are most welcome.
Step 3: Document Verification by our Expert Team and Signature of Documents
Our expert team will verify the documents uploaded by you. You will need to attest your signature on the documents.
Step 4: Our Experts Team will File Forms on the MCA portal to convert your OPC into Private or Public Limited Company
Our experts team will file the below e-forms on behalf of you on the MCA portal.
After the company forms are filed on the MCA portal, the Registrar of Companies (ROC) and the respective departments will verify the forms submitted by our expert team. The verification process takes around 5-7 days (subject to departmental approval and reverts from the respective departments).
Our expert team will follow up with the respective authorities till you receive the Fresh Certificate of Incorporation. After the verification process is complete, you will receive the Fresh Certificate of Incorporation in about 5-7 days.
Service Area
We provide strategic and qualitative advisory services to all our clients from domestic to international organizations, small, medium and large sized enterprises, assisting them with their incorporation and quality management services so they can establish their business successfully globally. To help them deal with their tax issues, financial and legal requirements we provide all support for post incorporation services, so they are able to run their business seamlessly. We are based at New Delhi and Faridabad, but our wings are spread to serve clients across the globe. Customer Satisfaction, Quality of Service and our Turnaround time are the drivers of our enthusiasm and success. We are continuously serving our client at Faridabad, Delhi, Gurgaon (Gurugram), Noida (Gautam Budh Nagar), Sonipat, Panipat, Palwal, Jind, Karnal, Meerut, Kolkata, Mumbai (Bombay), Pune, Bangalore, Nasik, Aurangabad, Nagpur, Ludhiana, Amritsar, Mohali, Hyderabad, Kanpur, Agra ,Rudrapur, Haridwar, Jamshedpur, and many other Industrial Areas.