One Person Company is an entirely new concept of business recognized by the Companies Act, 2013. A One Person company can be easily managed with minimal compliances and limited liability, conversion of the Sole Proprietorship/ Partnership or Private Limited Company to One Person Company has proved to be beneficial to most people.

A Private Limited Company having a paid-up share capital of less than Rs. 50 lacs or an annual turnover of Rs. 2 crores or less during its relevant period may convert itself into a One Person Company. For the conversion into an OPC, an application needs to be filed with the Registrar along with the requisite documents and the fees.

The Procedure for Conversion of Private Company into One Person Company (OPC) is regulated by Rule 7 of Companies (Incorporation) Rules, 2014.

PREREQUISITE CONDITIONS

• The private limited company shall obtain principal approval from all the members of a company.
• A special resolution in the general meeting has to be passed to approve the conversion of the private limited company into One Person Company.
• Before passing a special resolution, the company shall obtain principal approval from all the creditors of the company.

 Why should you convert a Private limited company into a One Person Company?

1. Minimal Compliances and Management
In a One Person Company, there is less compliance requirement as compared to a Private/Public limited company.

2. Tax relaxation
Tax Payment is far less in a One Person Company as compared to a private limited company.
 
3. Limited Liability
Liability of the person in a One Person Company (OPC) is limited to the extent of the value of the investment or share.

4. Easy to start
The startup cost of a One Person Company is less as compared to a private limited company. One Person Company is easy to start because there are very fewer compliances as compared to a private limited company.

5. Number of Members
Only a single person is required at the time of incorporation of One Person Company, whereas in a private limited company, minimum 2 persons are required at the time of incorporation of a company.

6. Complete Control
The sole owner of the company makes all the decisions, controls and manages the business without following any elongated processes and methodologies as adopted by other companies. The sense of belonging inspires to grow the business further.

Documents required for Conversion of Private Limited Company into One Person Company

For the Registered Office

1. Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/ Electricity/ Gas Bill
2. Scanned copy of Notarised Rental Agreement in English
3. Scanned copy of No-objection Certificate from property owner
4. Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
    

Minimum Requirements for One Person Company Registration

1. Minimum one Director ( Resident of India)
2. Minimum one Shareholder
3. Minimum one Nominee
4. Minimum Share Capital to be Rs. 1 lac
5. Director Identification Number (DIN) for all directors
6. Digital Signature Certificate (DSC) for 1 promoters and 1 witness

 
What is included in our package?

1. Name Approval
2. MOA/AOA
3. Company PAN Card
4. ROC Registration fees

You May Also Want To Know

1. When can a Private Limited Company convert into One Person Company (OPC)?
    Ans. A Private Limited Company can convert itself into one person company (OPC) if it has a paid-up capital of less than Rs.50 Lacs and an annual turnover of less than of Rs.2 Crore.

2. How many persons are required at the time of conversion of the private limited company into One Person Company?
    Ans. Only one person is required to start an OPC who acts as a director as well as a shareholder of the company.

3. Can any minor become member or nominee of One Person Company (OPC)?
    Ans. No, Minor shall become a member or a nominee of One Person Company or can hold a beneficial interest in One Person Company.
 
4. What are the compliance exemptions under One Person Company (OPC)?
    Ans. An OPC is exempted from doing the following compliances:-

• Sign on Annual returns
• Sign on Financial statements
• Power of Tribunal to call meetings of the members
• Notice of meeting
• Quorum for meetings
• Chairman of meetings
• Proxies
• Calling of extraordinary general meetings
• Voting through electronic means
• Restriction on voting  rights
• Voting by show of hands.
• Demand for Poll.
• Postal Ballot.
• Statement to be annexed to notice.

 
5. Who can become a member of a One Person Company?
    Ans. Only a Natural Person, who is an Indian Citizen shall be eligible to act as a member and a nominee of One Person Company.
 
6. A person can be a member of how many OPC?
    Ans. A person can be a member of only one OPC.
 
7. What is the provision of a nominee under One Person Company?
    Ans. At the time of incorporation of a One Person Company, the sole member of one person company needs to appoint another individual as his nominee, that name of the nominee shall have to mention in the Memorandum of Association (MOA).