Idea has been presented in the Company’s Act 2013, about the One Person Company (OPC). In a Private Company, at least 2 Directors and 2 Members are required though in a Public Company, at least 3 Directors and at least 7 individuals. A solitary individual couldn’t fuse a Company already. One Person Company (OPC) is an organization joined by a solitary individual. Before the requirement of the Companies Act, 2013, a solitary individual couldn’t set up an organization. On the off chance that an individual needed to set up his business, he/she could pick just for a sole ownership as there must be at least two directors and two individuals to set up an organization. The conversion of OPC to private limited company is discussed below.!
Conversion of OPC
The conversion of an OPC-One Person Company into Private Limited Company according to Section 18 of the Companies Act, 2013 and the arrangements of Companies (Incorporation) Rules of 2014 ought to be released by a recently framed Private Limited Company. These guidelines won’t influence the current obligations, liabilities, commitments or agreements of the OPC.
There are two different ways of converting over an OPC into a private limited company either deliberately or compulsorily. Under both these sort of converts, the prerequisites are vital adjustments in the MOA and AOA of the OPC (according to the arrangements gave in area 18 of the Companies Act, 2013, alongside section 122 of the Act).
The part says to acquire no protest in composed structure, from the concerned individuals and banks; passing a goal on the side of transformation; and it ought to likewise fulfill the necessities of the base settled up capital, alongside the base number of individuals and directors.
For incorporating a private limited company the base paid capital suggested is Rs. 1,00,000 and two individuals and two directors at least. To apply for transformation of OPC to private limited company, you need to fill the structure INC-6, to the Ministry of Corporate Affairs, Govt. of India.
Two types of conversion
For converting over an OPC into Private Limited Company, the arrangements set down in the Section-18 of the Indian Companies Act of 2013, and the Companies (Incorporation) Rules of 2014, specifically the Rule 7(4) of the Companies (Incorporation) Rules, 2014, should be followed for both the conditions; intentionally and under impulse.
Voluntary Conversion
Voluntary conversion into a private limited company isn’t allowed except if two years is lapsed from the date of incorporation of the OPC. However, in the event that the settled up share capital surpasses rupees 50 lakhs or on the other hand assuming its normal turnovers surpass INR 2 crores, within two months, the OPC could convert over into a private limited company.
OPC needs to convey deliberate convert to an enlistment center of companies in structure INC 5 within sixty days.
For converting over to a private limited company, OPC is needed to have 2 directors and 2 individuals.
Compulsory Conversion
This is a condition where you need to convert an OPC over to private limited company mandatorily. It is on the grounds that an OPC has settled up share capital that surpasses Rs. 50 lakhs and the yearly turnover of quickly past three back to back monetary years is multiple Crores rupees, then, at that point it is mandatory for anybody to convert over.
Such company needs to mandatorily convert over to a private or public limited company within a time of a half year from the date when the settled up share capital surpassed 50 lakhs rupees or the last date of the connected period in which the normal yearly turnover outperforms 2 Crore rupees.
The convert is made simply by passing an extraordinary goal in the regular gathering. It is checked for a No protest declaration in composed from the loan bosses, and different individuals before the goal are passed.
Suggesting to ROC
The concerned ROC should initially be imparted through the recommended technique that the OPC is currently needed for converting over itself into a private limited company.
Passing the Board Resolutions
The investors of the OPC should hold a General Meeting for passing the goal for raising the settled up capital (if necessary), no. of investors, and arrangement of directors for meeting the prerequisites of the Private Limited Company. For converting an OPC over to a Private Limited Company, there ought to be somewhere around 2 investors and 2 directors.
Besides, a board goal ought to have passed by the investors for supporting the modification of the Memorandum of Association (MOA) and Articles of Association (AOA) of the OPC.
Application for transformation of OPC to Private Limited Company
When the above advances are finished, the company needs to record an application to the recorder alongside a duplicate of the goal within fifteen days of passing the goal. The recorder then, at that point affirms on the application subtleties filled to be right and expenses are being paid against the enlistment. Then, at that point the recorder settles on a choice by at long last considering the application and different archives completely and issues the endorsement of convert.
These days E-Forms are additionally accessible with the Registrar of Companies. There will be a punishment is this sort of transformation if any official contradicts the arrangements of these principles, and will be rebuffed with a fine adding up to Rs.10 thousand and a further fine of 1,000 rupees for consistently after the primary such negation being proceeded.
The presentation of One Person Company into overall set of laws appeared to urge the business visionaries to go into the corporate world. It won’t just empower the individual abilities to contribute monetary development yet will likewise produce work opportunity.
Why to choose OPC?
Separate Legal Entity:
This is the fundamental component of OPC. The director’s and the organization’s resources have considered extraordinary. The individual resources of the directors have not used to pay the obligations of the organization. It ensures the responsibility.
Greater validity:
As the organization has enlistment with the Ministry of Corporate Affairs it has greater believability with the partners. It helps in the development of the business.
It appreciates unending progression.
Regardless of whether the director leaves or there is a change the organization proceeds.
