Conversion of Private To One Person Companies is a service offered by the first auditor in Chennai, Tamil Nadu. We are the top consultants for turning a private company into a one-person operation in Chennai, Tamil Nadu. In the following cities: Coimbatore, Madurai, Tirupur, Trichy, Thanjavur, Dindigul, Erode, Salem, Namakkal, Karur, hosur, tuticorin, krishnagiri, Cuddalore, Kanyakumari, Pondicherry. We provide low-cost conversion from Private To One Person Companies. In comparison to our rivals, we provide the service at a low cost and efficiently.
Overview of the Private to One Person Company
According to the Companies Act of 2013, which creates a mechanism to convert one class of company into another, the conversion of a PLC (Private Limited Company) into an OPC (One Person Company) is permitted. Beginning on April 1, 2014, Section 18 of the Act expressly permits the conversion of a private limited company that is already registered.
The responsibilities and contractual obligations of the business before to conversion would not be affected by the conversion of PLC to OPC; these claims, liabilities, and obligations would continue to be legally enforceable, and the resulting OPC would be responsible for them.
Advantages of switching from PLC to OPC
Limits the Liability of Directors
Borrowing is a common necessity for businesses. In sole proprietorships, the owners are fully responsible for all debt. Therefore, the owner would have to sell his or her car, house, or jewellery to pay it back if the company could not. In an OPC, all personal property would be safe and just the money used to launch the firm would be forfeited.
Permanent Existence
In contrast to an OPC, if a promoter operated as a single proprietorship, the firm would stop with his or her passing. An OPC will transfer to the nominee director and continue to exist since it has a distinct legal identity.
Limited compliance
Share certificates and statutory registers are the only annual filings allowed because an OPC can only have one director and one shareholder.
Documents needed to change a private limited company to a sole proprietorship
- To the board of directors: Notice
- A copy of the board resolution authorising notice distribution.
- Copy of the amended Articles of Association
- A copy of the amended articles of incorporation
- Statement from the directors
- The Members list
- A copy of the secured creditors' NOC
- A copy of the shareholders' NOC
- Certified financial statements
FAQ
Can a Private Limited Company become an OPC?
After meeting the two main requirements, a private limited company may become an OPC. First, the paid-up capital and annual revenue both cannot exceed Rs 50 lakhs and Rs 2 crores, respectively.
Can there be two or more directors for a one-person company?
No, a one-person company is not allowed to have more than one shareholder or director. Shareholders and directors can both be the same person.
What advantages come with changing a Private Limited Company to an OPC?
No need for an annual general meeting, ease in filing annual returns, and ease in making decisions are the three main advantages of conversion.
Can an OPC become a non-profit organisation (NPO)?
No, an OPC cannot be transformed into a nonprofit organisation or a charitable organisation. Additionally, it is unable to carry out banking, investment, or other financial transactions.
What processes are required in converting a private limited company to an OPC?
Convene Board Meeting, Hold Board Meeting, Convene EGM, NOC from Creditors, Hold EGM, File Forms MGT-14 and INC-6, and Issue Certificate are the stages involved.
Is it possible for a foreign national to join a one-person company?
No, the only individual who can become a shareholder of the proposed OPC is a Natural Person with Indian Citizenship.
Can a one-person business make investments in other businesses?
A one-person corporation can own stock in another business, yes.
Can an OPC hire employees?
Yes, an OPC is permitted to hire staff members because there is no employment cap under the 2013 Companies Act's regulations.
Is FDI permitted in a one-person business?
A one-person business is not permitted to take FDI (Foreign Direct Investment).