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Private Limited to One Person Company

Converting a Private Limited Company to a One Person Company (OPC) is possible under the provisions of the Companies Act, 2013. The process involves certain compliance requirements and the filing of relevant forms with the Registrar of Companies (ROC).

Here is an overview of the process:

  1. Eligibility: Only a Private Limited Company with a paid-up capital of less than Rs. 50 lakhs and an annual turnover of less than Rs. 2 crores can be converted to an OPC.
  2. Board Meeting: The Board of Directors of the company must pass a resolution for the conversion and approve a draft memorandum of association and articles of association of the OPC.
  3. Directorship: The sole member of the OPC must also be the sole director of the company, and a nominee director must be appointed in case of death or incapacity of the member.
  4. Consent: The sole member and nominee director must give their written consent for their appointment as such, and the nominee director must also give his consent for his appointment.
  5. Share Transfer: The shares of the Private Limited Company held by the sole member must be transferred to the OPC, and a copy of the share transfer agreement must be filed with the ROC.
  6. Application: An application in Form INC-6 must be filed with the ROC for the conversion, along with the draft memorandum of association and articles of association, and other necessary documents.
  7. Approval: The ROC will examine the application and, if satisfied, will issue a certificate of incorporation for the OPC.

Fee for conversion from Private Limited to OPC varies depending on the authorized capital of the company and ROC filing fees.

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