The Companies Act, 2013 allows a business to convert itself from a private limited company to OPC. Section 18 of the Act, explicitly provides for the conversion of an already registered private limited company with effect from 1-4-2014.Rule 7 of the Companies (Incorporation) Rules, 2014 deals with the conversion procedure.
1) Its paid up share capital is not more than Rs. 50 Lakh, or
2) During the relevant period, its average annual turnover was Rs. 2 Crore or less, and
3) It is not a section 8 company, that is, a company which has charitable objects.
1) Faster decision making.
2) Lesser compliance burden.
3) Freedom of operation.
4) Tax benefits.
5) No need for a board of directors.
6) One person can hold all the shares.
1) Conduct Board Meeting
2) Extra ordinary general meeting
3) File MGT 14
4) File Conversion
1) Fee for Converting Private Limited Company to OPC
The government fee for filing starts from as low as Rs. 200 and the professional fee starts from Rs.5000.
2) Timeline for Converting Private Limited Company to OPC
Usually, the entire process of conversion takes anywhere between 25-35 days.