The conversion of a Private limited company into One Person Company is authorized under the Companies Act, 2013. A Private limited company can be converted into an LLP only if the company has a paid-up capital less than Rs.50 lakh and an annual turnover below Rs. 2 crores for the past three consecutive years.
Advantages of One Person Company
Limits Director’s Liability:
Every business needs some form of investment to keep the business alive, and mostly they go for procuring loans. Unlike other forms of company structure, the liability of OPC is limited to the extent of his shares in the company. Hence, only the amount invested in the business would be lost; all personal assets would be safe.
A sole proprietorship company cease to exist after the death of the business owner. But, in case of an OPC which operates as a separate legal entity would pass on the nominee director and continue to exist.
OPC is completely controlled and managed by a single owner with few compliances to be followed. So, annual filings are much reduced, as is work relating to share certificates and the statutory registers.
DOCUMENTS AND INFORMATION REQUIRED
1. Copy of the duly attested latest financial statement;
2. Affidavit confirming that all the members of the company have given their consent for conversion, the paid up capital of the company is Rupees 50 lakhs or less and turnover is less than Rupees 2 crores in the immediately preceding year( I WILL PROVIDE THIS DRAFTS)
3. List of Member and Creditors;
4. NOC from every creditors;
5. Details of person who will be sole member of the OPC subsequent upon conversion;( with id , residence proof, PAN, mobile no., email id, education qualification)
6. Details of nominee (with id ,residence proof, PAN, mobile no. email id, education qualification)
7. Consent of Nominee in FORM INC-3( I WILL PROVIDE THIS)
8. Copy of Board resolution and minutes of members meeting( I WILL PROVIDE THIS)
9. Altered MOA and AOA( I WILL PROVIDE THIS)