Convert a One Person Company to a Private Limited Company, you can raise more capital by releasing more shares!
Introduction
In India, the share transferability of a private limited company is limited to 50 shareholders, and they are restricted from freely trading their shares with the general public. However, a One Person Company is run by a sole owner, with the added benefit of limited liability to the said owner and other shareholders. The conversion of an OPC to a Private Limited Company is mandatory when the company’s paid-up share capital exceeds 50 lakhs or its average annual turnover over three years is equal to or exceeds 2 crores. Sign up for our Conversion from One Person Company to Private Company Service today, so that your company can transform itself into a Private Company without any regular hassles. With our team working for you, you can focus on the impending transition, and acquiring funding for the same. Sign up today!
Distinctions between Private and One Person Companies
One Person Companies exist as a halfway point between Sole Proprietorships and Private Limited Companies.
| Private Company | One Person Company |
|---|---|
| Minimum members-2 | Minimum members-1 |
| Minimum Directors-2 | Minimum Directors-1 |
| No requirement of appointing a nominee | A nominee must be appointed where there is only one member |
| Foreigners may become members of a Private Company | No Foreigners may become members of one-person company |
Required Documents For Convert a One Person Company to a Private Limited Company
The documents required in order to effect a change from a One Person Company to a Private Limited Company are –
Altered memorandum and articles of association.
Notice of Extra-Ordinary General Meeting (EGM) with the approval of Directors for the conversion of a One Person Company to a Private Limited Company.
Special resolution for conversion of the company into a Private Limited Company.
Form INC 6 – Application for the conversion of One Person Company to a Private Limited Company.
Form MGT 14.
Minutes of the Meeting where approval was given for conversion.
In the event that the conversion is mandatory, form INC 5 may be required as well.
Sign up for our service today, so that our experts can provide you with a complete list of all necessary documentation, and process your application for you!
