Conversion of One person Company into Private Limited Company

Here, we are going to see the conversion of One Person Company into Private Limited Company based on some criteria. They are as follows:

One Person Company to Private Limited Company:

There are two ways to convert OPC into Pvt Ltd company. One is voluntary conversion and other one is compulsory conversion.

Voluntary conversion:

When OPC got incorporated, it cannot convert itself into any other form of company for two years from the date of incorporation. If the time period got elapsed, it can convert as per the companies act.

Compulsory Conversion:


  • If the paid up capital of a one person company exceeds fifty lakh rupees or the average annual turnover exceeds the two crore rupees during the relevant period would cease to continue as an OPC.
  • Such a kind of one person company need to convert it within the six months from the date on which paid up share capital got increased above fifty lakh rupees or in the last day of the relevant period, the average annual turnover exceeds the amount of two crore rupees. If it is a case, then it needs to convert either as a private company with a minimum of 2 directors and 2 members or a public company with 7 members and three directors in accordance with the companies act.

Conversion methods:

  • By passing a resolution, one person company can alter its articles and memorandum in accordance with the section 122 of the act and can find the effect to conversion and the changes which is necessary to made.

Conversion              Conversion       Conversion

  • Within a period of sixty days from the date of commencement, OPC need to give the notice to the registrar in the Form.No.INC.5 which is to inform about the formation of OPC and now it required to convert private or public company since the paid up share capital and the annual turnover exceeds the threshold limit.
  • Relevant period is the one in which immediately preceding the three consecutive years.
  • If the one person company or the members in the OPC contravenes the company rule, they will be punishable with a fine amount of ten thousand rupees. If the contravenes continues, then thousand rupees will be fined for every day.
  • One person company can get converted itself into a private company by increasing the members and directors as per the act for such a class of company. To make the due compliance of section 18 of the act for such conversion.

We “Solubilis Corporate Services”, the corporate service providers who guides and motivates the clients in an effective way. One Person Company registration can be done with the proper guidance throughout the whole process. We also provide the best possible solution to the clients for all their business related issues. We do offer services at various locations. They are as follows:

Chennai, Madurai, Salem, Trichy, Tirupur, Karur, Hyderabad, Bangalore, Erode, and Coimbatore.


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