One Person Company into Private Company
A one Person Company can be converted lawfully into a Private Limited company voluntarily or mandatorily.
• Voluntarily an OPC cannot be converted into a private ltd company, within 2 years of its Incorporation.
• The existing OPC must have the total paid up capital less than or equal to Rs 50 lacs, and its Average annual turnover during the past three immediately preceding and consecutive financial years, should be less than or equal to Rs 2 crores, at the time of conversion.
• Compulsory conversion is required if OPC’s total paid up capital equals to or gets more than Rs 50 lacs or its average annual turnover during immediately preceding three consecutive financial years equal to or exceeds Rs 2 crores.
• Within 60 days of occurrence of these two conditions, the existing OPC is compulsorily required To give a notice of the specified occurrence to concerned ROC in form INC-5
Process of conversion
The conversion process involves making necessary alterations in MOA and AOA of the OPC, Obtaining no objection in written form from the concerned member and creditor, passing a Resolution in support of conversion and satisfying the requirements minimum number of required members and directors.