{"id":5565,"date":"2020-03-28T14:41:37","date_gmt":"2020-03-28T09:11:37","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5565"},"modified":"2025-01-23T16:42:12","modified_gmt":"2025-01-23T11:12:12","slug":"conversion-of-private-company-into-opc","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/conversion-of-private-company-into-opc\/","title":{"rendered":"Conversion of Private Company into OPC: Step by Step Procedure"},"content":{"rendered":"\n<p class=\"has-drop-cap\">One Person Company is a new business concept introduced under the Companies Act, 2013. As the name suggests, One Person Company can be registered with a single individual only.<\/p>\n\n\n\n<p>On the other hand, a Private Company is a type of Company which is held privately by a small group of individuals<em>.<\/em> Under Companies Act, 2013, the Conversion of one class of Companies to another class is provided. Due to more legal compliances to be followed, the <a title=\"Private Limited Company Registration\" href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Private Limited Company<\/strong><\/a> go for Conversion into One Person Company (OPC). In the article, we will discuss the process of Conversion of Private Company into OPC.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/conversion-of-private-company-into-opc\/#What_is_a_Private_Company_and_a_One_Person_Company_OPC\" >What is a Private Company and a One Person Company (OPC)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/conversion-of-private-company-into-opc\/#What_are_the_legal_provisions_governing_the_Conversion_of_Private_Company_into_OPC\" >What are the legal provisions governing the Conversion\nof Private Company into OPC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/conversion-of-private-company-into-opc\/#What_are_the_conditions_for_Conversion_of_Private_Company_into_OPC\" >What are the conditions for Conversion of Private\nCompany into OPC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/conversion-of-private-company-into-opc\/#What_is_the_procedure_for_Conversion_of_Private_Company_into_OPC\" >What is the procedure for Conversion of Private\nCompany into OPC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/conversion-of-private-company-into-opc\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Private_Company_and_a_One_Person_Company_OPC\"><\/span>What is a Private Company and a One Person Company (OPC)?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-59.png\" alt=\"Private Company and a One Person Company\" class=\"wp-image-5566\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-59.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-59-300x175.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Private Company<\/h3>\n\n\n\n<p><strong><em>Under\nCompanies Act, 2013, the Private Company is defined under Section 2(68) of the\nAct.<\/em><\/strong> A Private Company is a\nprivately held company or a closed corporation, whose shares cannot be traded\nin public at large. The Article of Association (AoA) of Private Company put a\nrestriction on the transferability of shares. <strong><em>The maximum number of\nmembers in a Private Company is 200 as per Section 2(68) of the Companies Act,\n2013.<\/em><\/strong><\/p>\n\n\n\n<p>The\nliability of each member is limited to as their shares only. The Shareholder\ncan sell their own shares in case the Company faces loss. Private Company keeps\nin existence of law forever, even in case of death, bankruptcy or insolvency of\nany of its members. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">One Person Company<\/h3>\n\n\n\n<p>Under Companies Act, 2013, One Person Company (OPC) is defined under Section 2(62) of the Act. OPC only has one person as to its member. In this Company, the compliance requirements are less than that of other classes of Companies under the Act.  <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-60.png\" alt=\"One Person Company\" class=\"wp-image-5567\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-60.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-60-300x175.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<p><strong><em>The\nunique feature of One Person Company (OPC) is that the sole member of Company\nhas to mention a nominee while registering for OPC. <\/em><\/strong>So, in case of death of sole member, the nominee has\nthe right to choose or reject for becoming sole member of OPC. &nbsp;<\/p>\n\n\n\n<p>OPC\nenjoys several privileges and exemptions <strong><em>under the Companies Act, 2013,<\/em><\/strong>\nas compared to the other classes of Companies. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_legal_provisions_governing_the_Conversion_of_Private_Company_into_OPC\"><\/span>What are the legal provisions governing the Conversion\nof Private Company into OPC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The legal provisions governing the Conversion of Private Company into OPC are as follows:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"635\" height=\"346\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-61.png\" alt=\"legal provisions governing the Conversion of Private Company into OPC\" class=\"wp-image-5568\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-61.png 635w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-61-300x163.png 300w\" sizes=\"(max-width: 635px) 100vw, 635px\" \/><\/figure><\/div>\n\n\n<ul>\n<li><strong><em>Section 18<\/em><\/strong> of the <strong>Companies Act, 2013<\/strong><sup><a href=\"https:\/\/www.mca.gov.in\/content\/mca\/global\/en\/acts-rules\/ebooks.html\"><strong>[1]<\/strong><\/a><\/sup>.<\/li>\n\n\n\n<li><strong><em>Rule 7<\/em><\/strong> of the Companies (Incorporation) Rules, 2014. &nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_conditions_for_Conversion_of_Private_Company_into_OPC\"><\/span>What are the conditions for Conversion of Private\nCompany into OPC? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The\nfollowing are the conditions for Conversion of Private Company into OPC:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>The paid-up share capital of Company is less than 50 lakh Rupees. <\/li>\n\n\n\n<li>In the past 3 consecutive years, the annual turnover of the Company should not be less than 2 crores Rupees. <\/li>\n\n\n\n<li>The Shareholder of the new OPC should have Indian nationality.<\/li>\n\n\n\n<li>The Shareholder of the new OPC should be a resident person of India. A person becomes resident if he\/she stays in India for a period of 180 days of one calendar year.<\/li>\n\n\n\n<li>The Shareholder should not be holding any other OPC, or he\/she should not be a member of any other OPC.<\/li>\n\n\n\n<li>A minor cannot be a part or member of OPC.<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/conversion-of-public-company-into-private-company\/\">\nConversion of Public Company into Private Company: A Complete Procedure\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_procedure_for_Conversion_of_Private_Company_into_OPC\"><\/span>What is the procedure for Conversion of Private\nCompany into OPC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The procedure followed for the Conversion of Private Company into OPC is as follows:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"336\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-62.png\" alt=\"procedure for Conversion of Private Company into OPC\" class=\"wp-image-5569\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-62.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-62-300x175.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Call for Board Meeting<\/h3>\n\n\n\n<p>The\nnotice for Board Meeting should be sent to all the members <strong><em>at least 7\ndays before the date of the Board Meeting<\/em><\/strong>. The agenda of Board Meeting\nshould be mentioned in the notice.&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Hold Board Meeting<\/h3>\n\n\n\n<p><strong><em>The\nBoard Meeting should be held for the following purposes:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>For the approval\nfrom the Directors for the Conversion of Private Company into OPC.<\/li>\n\n\n\n<li>For fixing the\ndate, place, time, and day of the Extraordinary General Meeting (EGM).<\/li>\n\n\n\n<li>For approval of\nnotice for EGM along with the agenda and Explanatory Statement.<\/li>\n\n\n\n<li>To authorize any\nof the Directors to issue the approved notice of the EGM.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Call for EGM<\/h3>\n\n\n\n<p>A\nnotice for Extraordinary General Meeting (EGM) should be sent to all the\nmembers, directors and auditors of the Company. <strong><em>The notice for EGM should\nbe sent<\/em><\/strong> <strong><em>at least 21 days before the date of the EGM.<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">NOC from Creditors<\/h3>\n\n\n\n<p><strong><em>Before passing the Special Resolution in the EGM, the Company should get a No Objection Certificate (NOC) from the existing shareholders and creditors.<\/em><\/strong> The No Objection Certificate (NOC) should be in writing.\u00a0 <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Hold EGM<\/h3>\n\n\n\n<p><strong><em>The\nEGM is convened for the following purposes:<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Check for the\nQuorum of the Meeting.<\/li>\n\n\n\n<li>Check for the\npresence of Auditor of the Company. If not present check for Leave of Absence\nis granted or not as per <strong><em>Section 146 of Companies Act, 2013<\/em><\/strong>. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Form Filing to RoC<\/h3>\n\n\n\n<p>For the purpose of Conversion of Private Company into One Person Company (OPC), certain e-Forms are to be filed with the concerned Registrar of Companies (RoC). <strong><em>The forms to be filed with the concerned Registrar are as follows:<\/em><\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-63.png\" alt=\"Form Filing to RoC\" class=\"wp-image-5570\" width=\"553\" height=\"323\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-63.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/image-63-300x175.png 300w\" sizes=\"(max-width: 553px) 100vw, 553px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\"><strong>Form\nMGT-14<\/strong><\/h3>\n\n\n\n<p>After passing of\nthe Special Resolution in EGM, <strong><em>Form MGT-14<\/em><\/strong> should be filed with\nthe RoC. <strong><em>The Form MGT-14 should be filed with RoC within 30 days of\npassing of the Special Resolution. <\/em><\/strong>The following attachments should be\nmade with the Form MGT-14:<\/p>\n\n\n\n<ul>\n<li>The notice of EGM with the copy of the explanatory statement.<\/li>\n\n\n\n<li>A true certified copy of the Special Resolution.<\/li>\n\n\n\n<li>The Altered Memorandum of Association (MoA) and Articles of Association (AoA) of the Company.<\/li>\n\n\n\n<li>A true certified copy of the Board Resolution.<\/li>\n<\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong>The Form MGT-14 should be filed first as the form number of MGT-14 is used in Form INC-6.<\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Form\nINC-6<\/strong><\/h3>\n\n\n\n<p>The application\nfor the Conversion of Private Company into OPC should be filed to the RoC. The\napplication should be filed in <strong><em>Form INC-6<\/em><\/strong> with the following\nattachments:<\/p>\n\n\n\n<ul>\n<li>The total list of\nmembers and creditors<\/li>\n\n\n\n<li>The latest balance\nsheet of the Company<\/li>\n\n\n\n<li>The copy of No\nObjection Letter<\/li>\n\n\n\n<li>An affidavit of the\ndeclaration of the Directors of Company that all the creditors and shareholders\nhave given consent for the Conversion of Private Company into OPC, the paid-up\ncapital of the Company is 50 lakh rupees or less, and the turnover of the\nPrivate Company is less than 2 crore rupees.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Issue\nof Share Certificate<\/h3>\n\n\n\n<p>The Registrar of Companies (RoC) will verify all the e-Forms submitted and all attached documents filed by Private Company for Conversion of Private Company into OPC. Once the Registrar of Companies (RoC) is satisfied that the Private Company has complied with the prescribed requirements, should <em><a href=\"https:\/\/corpbiz.io\/learning\/complete-procedure-for-right-issue-of-shares\/\"><strong>Issue Share Certificate<\/strong><\/a><\/em><a href=\"https:\/\/corpbiz.io\/learning\/complete-procedure-for-right-issue-of-shares\/\"><strong> <\/strong><\/a>for the Conversion of Private Company into OPC.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/one-person-company\" title=\"One Person Company Registration\"><strong>One Person Company <\/strong><\/a>(OPC) can be easily managed with very fewer compliances to be followed as compared to Private Company. The Conversion of Private Company into OPC will benefit most people associated with the Company. The process of Conversion of Private Company into OPC is long-lasting and lengthy. We at <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> have experienced professionals who will assist you with the process of Conversion of Private Company into OPC. Our professionals will help you and will assure the successful completion of your work. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/compliance-and-annual-filing-requirements-of-opc\/\">What are The Compliances and Annual Filing Requirements of One Person Company?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One Person Company is a new business concept introduced under the Companies Act, 2013. As the name suggests, One Person Company can be registered with a single individual only. On the other hand, a Private Company is a type of Company which is held privately by a small group of individuals. Under Companies Act, 2013, [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":5572,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120,340],"tags":[433],"acf":{"service_id":"321"},"authorName":"Sakshi Sharda","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/02\/sakshi-sharda.jpg","authorDescription":"Sakshi Sharda has done BBALLB(HONS) and holds a strong knowledge on the matters pertaining to finance and law. From the past one year she is working as a legal advisor and in her leisure time she works on improvising her knowledge. Sakshi is spreading her knowledge by writing for Corpbiz.","postViews":23304,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5565"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5565"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5565\/revisions"}],"predecessor-version":[{"id":68520,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5565\/revisions\/68520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5572"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}