Private Limited to OPC Conversion
Quick Answer
Private Limited to OPC Conversion India allows a private limited company to convert into a One Person Company (OPC) under the Companies Act, 2013. This business change is suitable for sole owners who want to reduce compliance burden while retaining limited liability.
Private Limited to OPC Conversion — detailed explanation below
Governing Act — Private Limited to OPC Conversion India
The conversion of a private limited company to a One Person Company is governed by Section 18 of the Companies Act, 2013, along with Rule 7 of the Companies (Incorporation) Rules, 2014. These provisions outline the eligibility, procedure, and documentation required for the conversion. No reported decision was found on this point.
Government Department & Website for Private Limited to OPC Conversion India
The Ministry of Corporate Affairs (MCA) is the governing body. All filings for Private Limited to OPC Conversion India are done through the MCA portal at www.mca.gov.in. The Registrar of Companies (ROC) having jurisdiction over the company's registered office processes the application.
Private Limited to OPC Conversion India Application Process
The process for Private Limited to OPC Conversion India involves the following stages:
- Board Meeting: Convene a board meeting to approve the conversion and pass a resolution.
- Shareholders' Consent: Obtain consent from all shareholders and creditors, if required.
- Filing Form INC-6: File e-Form INC-6 with the ROC along with the required documents.
- Issuance of Certificate: Upon approval, the ROC issues a fresh Certificate of Incorporation confirming the conversion.
The entire procedure is conducted online through the MCA portal.
Key Forms Required for Private Limited to OPC Conversion India
The primary form for Private Limited to OPC Conversion India is e-Form INC-6 (Application for conversion of a private company into a one person company). Supporting documents include:
- Certified copy of board resolution
- List of shareholders and creditors
- Declaration by the director
- Statement of assets and liabilities
- No objection certificate from creditors (if any)
Eligibility Criteria for Private Limited to OPC Conversion India
To be eligible for Private Limited to OPC Conversion India, the private limited company must:
- Have a paid-up share capital not exceeding ₹50 lakh (or such higher amount as prescribed)
- Have an average annual turnover during the preceding three years not exceeding ₹2 crore (or such higher amount as prescribed)
- Not be a company registered under Section 8 of the Companies Act, 2013
- Have only one member after conversion
Timeline for Private Limited to OPC Conversion India
The timeline for Private Limited to OPC Conversion India depends on the ROC's processing time. The application is processed after submission of e-Form INC-6. No specific timeline is prescribed by law.
Fees for Private Limited to OPC Conversion India
The government fees for Private Limited to OPC Conversion India are prescribed under the Companies (Registration Offices and Fees) Rules, 2014. The fee depends on the authorized capital of the company. Below is the fee structure for e-Form INC-6:
| Authorized Capital (₹) | Fee (₹) |
|---|---|
| Up to 1,00,000 | 200 |
| 1,00,001 to 5,00,000 | 300 |
| 5,00,001 to 10,00,000 | 500 |
| Above 10,00,000 | 1,000 |
Additional professional fees may apply for document preparation and filing.
Frequently Asked Questions
What is Private Limited to OPC Conversion India?
Private Limited to OPC Conversion India is the process of converting a private limited company into a One Person Company under the Companies Act, 2013. This business change allows a single shareholder to own the company with limited liability and reduced compliance.
What are the eligibility criteria for Private Limited to OPC Conversion India?
The company must have a paid-up capital not exceeding ₹50 lakh and average annual turnover not exceeding ₹2 crore. It must not be a Section 8 company, and after conversion, it must have only one member.
Which form is used for Private Limited to OPC Conversion India?
The application for Private Limited to OPC Conversion India is made using e-Form INC-6, filed with the Registrar of Companies through the MCA portal.
What documents are required for Private Limited to OPC Conversion India?
Key documents include a certified board resolution, list of shareholders and creditors, declaration by director, statement of assets and liabilities, and no objection certificates from creditors if applicable.
Can a private limited company with losses convert to OPC under Private Limited to OPC Conversion India?
Yes, a private limited company can convert to OPC even if it has losses, provided it meets the eligibility criteria regarding paid-up capital and turnover. The conversion process does not require profitability.
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