New companies act 2013 introduced the concept of One Person Company that can be formed by a single person. In India, OPC can be formed by a natural person who must be an Indian citizen and resident.<\/p>\n\n\n\n
In an OPC, the promoter can be a director as\nwell as the shareholder<\/a>. the promoter is required to appoint the nominee i.e.\nthe memorandum of the OPC shall indicate the name of the other person as the\nnominee, with his written consent who shall in the event of the death of the\npromoter or his incapacity to perform become the member of the company and the\nsame shall be filled to the roc at the time of incorporation of the company\nalong with its memorandum and articles.<\/p>\n\n\n\n OPC shall cease to continue its business as OPC when the paid-up share capital exceeds fifty lakhs rupees its average turnover of during the relevant period exceeds two crores. OPC shall be required to convert itself into a private company or public company by virtue of its paid-up share capital or average annual turnover.<\/p>\n\n\n\n Then OPC shall<\/strong><\/p>\n\n\n\n Within 6 months of above situation\/event, such\nOPC shall be required to convert itself into-<\/p>\n\n\n\n a)-a private company with a minimum of 2\nmembers and 2 directors, or<\/p>\n\n\n\n b)-a Public Limited\nCompany<\/strong><\/a> with a minimum of\n7 members and 3 directors.<\/p>\n\n\n\n it shall give notice to ROC within 60 days in\nform no. in-5 it has ceased to be an OPC and is required to convert itself into\nthe private or public company.<\/p>\n\n\n\n Under the mandatory conversion, if the OPC (One\nPerson Company) crosses the threshold limits mentioned above, it should\nmandatorily convert itself within a period of two months.<\/p>\n\n\n\n Section 18 of the Companies Act, 2013[1]<\/a><\/sup><\/strong> provides the procedure for the conversion of the already registered companies. It states the following points –<\/p>\n\n\n\n Also,the said company is required to be follow is\nthe Companies (Incorporation) Rules, 2014.<\/p>\n\n\n\n It is possible only after the expiry of 2\nyears from the date of incorporation of OPC.<\/p>\n\n\n\n In case of conversion of OPC into public limited company voluntarily, the procedure shall be the same but the requirement for filing forming-5 shall not be applicable.<\/p>\n\n\n\n On compliance with the above requirement, roc shall close the former registration as One Person Company Registration<\/strong><\/a> documents submitted as issue a fresh certificate of incorporation, in the same manner as fresh registration<\/p>\n\n\n\n *conversion shall not affect existing\ndebts, liabilities, and obligation of the company<\/strong><\/p>\n\n\n\nMandatory Conversion<\/strong><\/h2>\n\n\n\n
Key Considerations of a Mandatory Conversion<\/strong><\/h2>\n\n\n\n
Section 18, Companies Act 2013<\/strong><\/h3>\n\n\n\n
Voluntary Conversion<\/strong><\/h2>\n\n\n\n
Key Consideration of a Voluntary Conversion<\/strong><\/h2>\n\n\n\n
What is the Procedure for Conversion of OPC into the Public Company?<\/h2>\n\n\n\n
Where one person company has only one director<\/h3>\n\n\n\n
Where One Person Company has more than one Director?<\/h3>\n\n\n\n