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Conversion of a Private Limited Company to an OPC

If you’re considering converting your Private Limited Company into a One Person Company (OPC), it could be a smart move. This option is ideal for entrepreneurs who want to simplify their business structure while keeping the advantages of limited liability. At the same time, it reduces compliance obligations, making it easier and more cost-effective to manage your company.

We, as consultants, offer complete guidance and support throughout the conversion process, ensuring you meet all legal requirements with minimal hassle.

Why Should You Convert to an OPC?

  1. Simplified Compliance: OPCs are subject to fewer regulatory requirements compared to Private Limited Companies.
  2. Complete Control: Since OPCs allow a single owner, you get full control over business decisions while enjoying limited liability.
  3. Lower Costs: The reduced compliance burden leads to significant savings in operational costs.
  4. Ease of Management: With only one decision-maker, the management process becomes simpler and faster.
  5. Potential Tax Savings: Depending on your business turnover and profitability, you might benefit from a more favorable tax structure.

Who Can Convert to an OPC?

Before you begin, ensure that your company meets these criteria:

  • Paid-up capital is less than ₹50 lakh.
  • Annual turnover is less than ₹2 crore in the last three financial years.
  • The company should not be involved in NBFC or financial investment activities.

How Does the Conversion Process Work?

  1. Board Meeting and Resolution:

    • Hold a board meeting to approve the decision to convert.
    • Pass a resolution authorizing the preparation of documents required for the process.

  2. Special Resolution:

    • Convene an Extra-Ordinary General Meeting (EGM) to pass a special resolution with shareholders’ approval.
    • File this resolution with the Registrar of Companies (RoC) through Form MGT-14.

  3. Application for Conversion (Form INC-6):

      Submit Form INC-6 to the RoC with the required documents:

    • Board and special resolutions.
    • Updated Memorandum of Association (MoA) and Articles of Association (AoA).
    • Proof of annual turnover and financial statements.

  4. Approval and Certification:

    • The RoC will review the application and, upon approval, issue a new Certificate of Incorporation reflecting the OPC structure.

How We Can Help

Our team of experts ensures a smooth and efficient conversion process, offering:

  • Eligibility Assessment: We evaluate your company’s suitability for conversion and advise on potential benefits.
  • Documentation: Preparation of resolutions, MoA, AoA, and other necessary documents.
  • Filing Assistance: We handle all compliance filings and communication with the RoC.
  • Legal Guidance: Comprehensive advice on how this conversion will affect your operations and compliance obligations.

    • Post-Conversion Support: Assistance with changes to branding, operational workflows, and tax-related adjustments.

How Long Does It Take and What Does It Cost?

The conversion process typically takes 3-4 weeks, depending on the readiness of your documents and RoC processing times. Costs will include government fees, professional fees, and any incidental expenses.

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