A Private Company, other than a company registered under section 8 of the Act, having paid up share capital of Rs. 50 Lakhs or less or average annual turnover during the relevant period, of two crore rupees or less, may convert itself into one person company. In One Person Company, the promoter can be the director as well as the shareholder. He need not to appoint anyone else except a nominee. Appointment of nominee is must as in events of incapacity, death or insanity of the promoter; the nominee gets the charge to run the business.
Conversion of Private Limited Company into One Person Company (OPC)
Advantages of One Person Company (OPC)
- Only one member is required.
- Easy to maintain as compared to other business modules.
- Not affected by the death of member or change in ownership.
- Limits the liability of its members.
- Unlike a private limited or public limited company (listed or unlisted), OPCs need not bother too much about compliances.
- Mandatory rotation of auditor after expiry of maximum term is not applicable.
- At least one Board Meeting must be held in each half of the calendar year and the gap between the two meetings should not be less than 90 days.
Process for Conversion of Private Company into One Person Company
What you do
You just need to fill our simple form regarding the basic details of director and business activities and provide certain documents.
What We do
Conversion of Private Company into One person Company in India needs approval from the Registrar of Companies (ROC). We will be preparing and filing all the documents with the MCA.
What you get
Once the required resolutions are passed by the company, we will start the process for conversion of the company.
You will receive fresh Certificate of Incorporation within 15 days from completion of process for conversion of the company subject to approval by the ROC.
Frequently Asked Questions
Whether appointment of nominee is mandatory in One Person Company (OPC)?
Appointment of nominee is must as in events of incapacity, death or insanity of the promoter; the nominee gets the charge to run the business.
How many minimum number of directors required to be appointed in One Person Company (OPC)?
Minimum number of directors is one in one person company but company can appoint maximum 15 directors.
What is the Capital requirement for One Person Company (OPC)?
An OPC should not exceed its paid up share capital to more than Rs. 50 lakhs and turnover to more than 2 crores. In that case OPC need to compulsory convert itself to either in private company or public company.
Do I need to be physically present?
All the documents are filed in electronic form and there is no need of any physical presence.