Conversion of OPC to Pvt Ltd
The conversion of an OPC (One Person Company) into a Private Limited Company must be completed by a newly formed Private Limited Company in accordance with Section 18 of the Companies Act, 2013 and the Companies (Incorporation) Rules of 2014. These clauses will not impact the OPC’s existing duties, contracts, liabilities, or debts.
Overview
It is either voluntary or required for an OPC to convert to a private limited company. According to the guidelines in section 18 of the Companies Act, 2013 and section 122 of the Act, both kinds of conversions require essential modifications to the OPC’s MOA and AOA.
According to the clause, a resolution in favor of conversion must be enacted, a minimum number of members and directors must be met, and the relevant members and creditors must not file any written objections.
Conversion on a voluntary basis
OPC must have two directors and two members in order to become a private limited company.
OPC must use form INC 5 to inform a registrar of companies of its voluntary conversion within sixty days.
Benefits of Conversion of OPC to Pvt Ltd
Simpler to Raise Money
Because it permits the selling of shares and provides a range of funding choices, including private equity, ESOPs, and more, raising money as a private limited company is a reasonably easy procedure.
Benefits of Taxation
For tax purposes, a one-person business is grouped with other enterprises since it is not recognized by the Income Tax Act. The overall earnings of private firms are subject to a 30% tax rate. Because it involves a significant financial burden, the idea of a one-person company consequently loses value from a tax perspective.
Checklist/Requirements
Directors’ and shareholders’ PAN cards
Duly certified copy of latest audited Financial Statements
Certificate of Incorporation
MoA & AoA
Process of Conversion of OPC to Pvt Ltd
Step 1: Gathering foundational data and documentation
Step 2: The new director’s DSC and DIN application
Step 3: Creating the required resolutions
Step 4: Writing the affidavit and other necessary documents
Step 5: Modification of the AoA and MoA
Step 6: Submitting form INC-6 online for conversion
Why Choose Us
Friendly to Entrepreneurs
Our pros will offer you all of the promised deliverables within the allotted period, and we make the procedure so quick and simple that you won’t even feel the headache of all the paperwork.
Skilled Experts
Every one of our experts is trained and skilled in that specific field. ensuring that no errors are made when filing with the authorities in order to prevent the company from incurring penalties for errors.
One Place to Go for All of Your Needs
We assist you at every stage of your company’s development, including incorporation, accounting and taxation, secretarial compliance, and legal support.
Economical
Since cost is a major factor in any business’s growth stage, we don’t surprise our clients with extra fees; instead, you pay what is shown in the original plan.
