How to Convert a Private Limited Company to a One Person Company?

According to the Companies Act, 2013, there may be a mechanism to transform a non-public restrained enterprise into an OPC (One Person Company), which affords for the conversion of 1 enterprise elegance into another. Starting from 1 April 2014, phase 18 of the Act explicitly permits a non-public restrained enterprise already registered to transform to an OPC (One Person Company).

Despite the reality that the enterprise's obligations and contractual responsibilities are unchanged through the Conversion of Private Company into OPC, such claims, liabilities, responsibilities of the enterprise earlier than the conversion will continue to be intact, and they may be enforced through the law, and the consequent OPC can be liable for them according with the la

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PLC to OPC Conversion Checklist

For a non-public restrained enterprise to be transformed right into a one-character commercial enterprise, the subsequent necessities should be met:

There have to were right training of the enterprise's debts and stability sheets.

The enterprise has filed all ROC (Registration of Companies) returns.

The enterprise's percentage certificate are established with the stamp responsibility fee and the stamp responsibility fee is matched up well with the proportion certificate.

All TDS (Tax Deducted at Source) has been deducted from the enterprise's income and returns were filed.

Taxes were paid and returns filed earlier than converting, consisting of value-delivered tax, or VAT.

As some distance because the enterprise's registered workplace and personnel are concerned, it complies with all tax responsibilities required through the nation wherein it has its registered workplace.

As lengthy because the enterprise lists month-to-month returns and will pay dues according with PF and ESIC, the enterprise is registered with PF and ESIC.

The following provisions permit a non-public restrained enterprise to emerge as a one-character enterprise

We offer much less than 50 lakhs as capital for the enterprise.

A enterprise have to have a turnover much less than 2 crores of rupees all through the closing 3 monetary years. If a enterprise is new, and hasn't finished 3 years, its turnover can be calculated from the day the enterprise became incorporated.

Extrude a Non-public Restrained Commercial Enterprise to a One-Character Enterprise

Hold a Assembly of the Board

In order to agenda an wonderful trendy assembly (EGM) of the shareholders of the enterprise, the administrators of the enterprise should meet and determine on a date with a view to be used for the assembly.

A member of the board should draft a note to shareholders together with a draft decision, which should be surpassed through the shareholders within side the shape of a unique decision concerning the conversion of the non-public groups to public groups.

Egm Note to Be Issued

In order to be eligible to vote on the EGM, it's miles predicted that each one members, administrators, and auditors of the employer acquire note 21 days earlier than the assembly.

Additionally, an informative announcement have to be protected with the attention and schedule as a unique decision.

All Lenders Have Now No Longer Objected

It is essential to acquire the No Objection Certificate (NOC) from all lenders of the enterprise earlier than the date of the EGM.

In order to convene the EGM, lenders should publish a replica in their approvals.

Organizing the EGM

On the day, time, and location said within side the note, the EGM should be held. The EGM may also approve altered MOAs (Memorandums of Agreements) and AOAs (Articles of Association).

The Roc Gets the Decision and Documents It

ROCs should acquire Form No MGT-14 together with directed attachments inside 30 days of the imminent date for all resolutions declared as unique resolutions beneath Neath the Companies Act, 2013.

A decision is recorded at the ROC's document as quickly as it's miles recommended through the MGT-14.

Certificates of Conversion Are Issued

An utility for conversion to a one-character enterprise is accredited through the Registrar of Companies having jurisdiction upon reputation of the utility.