{"id":7149,"date":"2018-02-13T18:00:32","date_gmt":"2018-02-13T12:30:32","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=7149"},"modified":"2020-02-10T17:39:14","modified_gmt":"2020-02-10T12:09:14","slug":"converting-opc-to-private-limited-company","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/converting-opc-to-private-limited-company\/","title":{"rendered":"Converting an OPC into a Private Limited Company"},"content":{"rendered":"<p class=\"has-drop-cap\">One person company (OPC) has been defined under Section 2(62) of the Companies Act 2013. <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/enterslice.com\/one-person-company\" target=\"_blank\">One Person Company<\/a> can be defined as a company that has only one person as to its member.<\/p>\n\n\n\n<p>The concept of <strong>OPC<\/strong> was introduced to support single-person enterprises that are having small businesses with a sales turnover of fewer than 200 lakhs. It was introduced to enable a lone Entrepreneur to start and manage a limited liability entity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is a Private Limited Company<\/strong><\/h2>\n\n\n\n<p>Private Limited Company can be termed as a Company which is having private ownership. Private companies may issue shares and have shareholders but their shares do not trade on public exchanges.<\/p>\n\n\n\n<p>Private Company is held by few individuals privately having a separate legal entity. A Private Company should have a minimum number of 2 shareholders and a maximum of up to 200 shareholders.<\/p>\n\n\n\n<p>It should have a minimum number of 2 directors and it can have a maximum number of 15 directors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conversion of OPC into a Private Company:<\/strong><\/h2>\n\n\n\n<p>As per the Act, an OPC can be converted into a Private Limited Company in following of the two ways i.e.:<\/p>\n\n\n\n<ul><li>Voluntary Conversion.<\/li><li>Compulsory Conversion.<\/li><\/ul>\n\n\n\n<p>If an OPC fulfills any of the situations, then it must convert itself into a <strong> Private Company<\/strong>:<\/p>\n\n\n\n<ol><li>If at any time the paid-up capital of the OPC exceeds Rs. 50 Lacs.<\/li><li>If the average turnover in any of the three consecutive financial years is more than Rs. 2 crores.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Compulsory Conversion of OPC <\/strong><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/enterslice.com\/company-registration\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Company Registration (opens in a new tab)\">Company Registration<\/a> shall be compulsorily converted itself into an OPC if its paid-up share capital exceeds &#8377; 50 Lakhs and the annual turnover exceeds &#8377; 2 crores, then it is obligatory for them i.e. Company convert itself into a private limited company.<\/p>\n\n\n\n<p>At the time of conversion, the members of the company shall pass a special resolution in the general meeting regarding the conversion of the company.<\/p>\n\n\n\n<div class=\"read\"><p><b>Also, Read:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/conversion-opc-public-limited-company\/\" target=\"_blank\" rel=\"noopener noreferrer\">Conversion of OPC into Public Limited Company<\/a><\/mark>.<\/p><\/div>\n\n\n\n<p>Before passing a resolution for the conversion of the company a No Objection Certificate shall be required to be taken in writing from the Creditors and the members of the company.<\/p>\n\n\n\n<p>Within fifteen days an application shall be filed to the Registrar along with the copy of the resolution regarding the conversion of the company into a Private company.<\/p>\n\n\n\n<p>After the &nbsp;<strong>Annual filling of LLP<\/strong> of the application and when the fees for the same has been paid the registrar shall verify the documents and shall issue the certificate of conversion to the company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Voluntary Conversion of OPC To private limited <\/strong><\/h2>\n\n\n\n<p>A <strong>One Person Company<\/strong> cannot be converted into a Private Company if two years have not been passed after its incorporation. Section 18 of the Companies Act, 2013 states the procedure of converting an OPC into a private company.<\/p>\n\n\n\n<p>For converting an OPC into a Private Company it is necessary to modify the Memorandum of Association and Article of Association of the Company in accordance with the prescribed provisions.<\/p>\n\n\n\n<p>An application shall be made to the Registrar of Companies along with the relevant documents which are required for the conversion of the company.<\/p>\n\n\n\n<p>If the Registrar is of the view that all the documents are proper then he will issue a certificate of conversion.<\/p>\n\n\n\n<p>After the conversion, the liabilities, debts or obligation of the company shall not be affected in any way.&nbsp; Hence, the company shall be liable for all its previous obligations.<\/p>\n\n\n\n<p>After the OPC is converted into a Private Limited Company it is obligatory for the company to increase its paid-up share capital to &#8377; 50 Lakhs and the annual turnover to 2 Crores or more, if the company fails in complying these provisions it shall covert back itself to an OPC by passing a special resolution.<\/p>\n\n\n\n<div class=\"read\"><p><b>Read More:<\/b> <mark><a href=\"https:\/\/enterslice.com\/learning\/conversion-of-dormant-company-into-active-company\/\" target=\"_blank\" rel=\"noopener noreferrer\">Conversion of Dormant Company into Active Company<\/a><\/mark>.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>One person company (OPC) has been defined under Section 2(62) of the Companies Act 2013. One Person Company can be defined as a company that has only one person as to its member. The concept of OPC was introduced to support single-person enterprises that are having small businesses with a sales turnover of fewer than [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":7151,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1392],"tags":[51,804,1622,218],"acf":{"service_id":"1"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Converting an OPC into a Private Limited Company Online<\/title>\n<meta name=\"description\" content=\"One person company or OPC has been defined under Section 2(62) of the Companies Act 2013 which has only one person as it member.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/converting-opc-to-private-limited-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Converting an OPC into a Private Limited Company Online\" \/>\n<meta property=\"og:description\" content=\"One person company or OPC has been defined under Section 2(62) of the Companies Act 2013 which has only one person as it member.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/converting-opc-to-private-limited-company\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-13T12:30:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-10T12:09:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/02\/OPC.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"934\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":637,"readingTime":3,"nextPost":{"id":1159,"slug":"nbfc-takeover-procedure"},"prevPost":{"id":7143,"slug":"analysis-tax-exempt-income"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/02\/OPC.jpeg","postTerms":"Company Conversion","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7149"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=7149"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/7149\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/7151"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=7149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=7149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=7149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}