Better Legal Station with Complete Control on Business
Switch your business structure from Private Limited to One Person Company by seeking full-fledged support from TrademarkBazaar.
As per the Companies Act, 2013, a Private Limited Company can be converted into a One Person Company (OPC). The Private Limited Company needs to have a paid up capital of less than INR 50 lakh and an annual turnover of not exceeding INR 2 crore. In addition, the OPC also need a nominee. A Resolution in the Extraordinary General Meeting (EGM) need to be passed for the approval of this conversion, before passing such resolution, the company shall procure a No Objection in writing from existing members and creditors.
The one person company shall file copy of the special resolution with the Registrar of Companies within thirty days from the date of passing such resolution in Form MGT – 14. [Rule 7(3)]
The company shall submit an application under the Form INC – 6 for its conversion into One Person Company (OPC) along with fees as provided in the Companies (Registration offices and fees) Rules, 2014, by attaching the following documents, namely:-
(i) The directors of the company shall made a declaration through an affidavit duly sworn in confirming that all members and creditors of the company have given their approval for conversion, the paid up share capital company is fifty lakhs rupees or less or average annual turnover is less than two crores rupees, as the case may be;
(ii) the list of members and list of creditors;
(iii) the latest Audited Balance Sheet and the Profit and Loss Account; and
(iv) the copy of No Objection letter of secured creditors. [Rule 7(4)]
On being satisfied and conformed to requirements stated herein the Registrar shall issue the Certificate.
Advantages of One Person Company
In case of Sole Proprietorship firm, the personal possessions of the directors remain at risk during failure. On the other hand, the shareholder’s liability in a One Person Company is limited to his shareholding.
The format of OPC is very much similar to Private Limited Company. Therefore OPC also gets the corporate status which encourages the entrepreneur to hire quality workforce and retain themby giving corporate designations, such as directorship.
Our strong domain expertise and customized work approach make us a leader in the segment. Trademark Bazaar provides full-fledged assistance to business owners looking to convert to One Person Company. We take a consultative approach to our service delivery and provide a solution that becomes the best fit for you in all aspects.