Voluntary Conversion of One Person Company in Coimbatore
Voluntary Conversion of OPC to Private Limited Company
The introduction of the Companies Act, 2013 saw the dawn of many new topics in India. One such change was the introduction of the One Person Company (OPC). It gave individual entrepreneurs the opportunity to create and maintain a limited liability company. There are many benefits to starting OPC and some limitations. Also, One Person company registration in Coimbatore states that there are certain eligibility criteria, requirements and compliance to take care of. In this article, we will explore an individual organization and talk about the eligibility criteria, requirements and compliance & powers that surround OPC. What is your exact need?. Here we discuss about Voluntary Conversion of One Person Company in Coimbatore in this article.
Section 2 (62) of the Companies Act, 2013 defines a One Person Company (OPC) as a “One member company”.
Member is a shareholder or subscriber to its Memorandum of Association
Therefore, OPC is a shareholder, of which he is also a member
People can only register OPC as a private company
Furthermore, Section 3 (1) (c) OPC owners are required to indicate the word ‘One Person Company‘ behind the company name.
One Person Company compliances and privileges
One Person company registration in Bangalore states below the compliances and privileges.
Unlike other organizations, the OPC is not required to hold formal meetings. Instead, the member can communicate the resolution in the company’s minute book. One Person company registration in Cochin states that according to Section 118, if the member updates and signs the book, then the date of renewal is considered as the date of the meeting. OPC complies with Section 173 if at least one board meeting is held within six months. Also, these meetings require more than 90 days of vacancy. If the OPC has a single director, the quorum meeting of the board of directors does not apply. The OPC is not required to hold an Annual General Meeting (AGM).
The OPC is exempt from filing a cash flow statement from the list of mandatory financial statements that a company must file at the end of each year. The Board may approve other financial statements. Also, One Person company registration in Trichy states that only one director must sign them before submitting to the auditor. In addition, a copy of the OPC financial statements along with other documents must be filed with the Registrar of Companies within 180 days from the end of the fiscal year. A company secretary and a director must sign the annual return of the OPC. If the company secretary is not present, only the director can sign.
Appointment of Auditor
The OPC is required to appoint an auditor within 30 days of joining. The auditor should be a practiced chartered accountant. One Person company registration in Salem states that the OPC Director must appoint an auditor to audit the OPC’s financial statements.
Some other powers:
The rules given to independent directors do not apply to OPCs
An OPC provides additional reasons for the leave of office of the Director in its articles.
Conversion of one person company into a private limited company
One Person company registration in Erode states that transforming a one person company into a private limited company may open the door to additional benefits, such as fundraising. An individual company enters a private limited company in two ways:
One Person company registration in Hyderabad states that OPC will not voluntarily convert to a private limited company unless two years have elapsed since the date of the OPC merger. An application will be made to the Central Government after changing the MOA and AOA of the OPC for conversion.The legal existence, rights and obligations of the Company remain the same after the conversion. A private limited company must employ at least 2 shareholders and 2 directors to meet the minimum requirement. OPC must notify ROC of voluntary exchange on E-Form INC-5 within 60 days.
Process of Conversion
One Person company registration in Madurai states that the exchange takes place by adopting a special resolution at the general meeting. It will be checked in writing for No Objection Certificate from the creditors and other members before the resolution is passed.
Approving the special resolution
OPC’s shareholders must hold a general meeting (if necessary) to approve a resolution to increase payment capital, no. Appointment of directors to cater to the needs of shareholders, and private limited company. To convert OPC into a private limited company, there must be at least 2 shareholders and 2 directors.
Informing the ROC
One Person company registration in Tirupur states that the relevant ROC must first be notified by the prescribed method required by the OPC to be converted into a private limited company.
Application to convert OPC into a Private Limited Company
Company Form No. within 6 months of mandatory conversion to ROC. An application must be filed in INC 6.
Benefits of One Person Company in Coimbatore
- May have more than 1 director, but the shareholder should not be more than 1.
- Not affected by the death or change of ownership of the member.
- Relatively effortless to set up and maintain.
- Limits the responsibilities of its members
- Minimum paperwork required.
- Can work as a stock broker or sub-broker
- Not multiple consent
- No interference appears from any third party
- No person is allowed to add more than 1 one person company.
Overview of One Person Company
One Person company registration in Karur is a separate legal entity having a single shareholder. Section 2 (62) of the Companies Act, 2013 defines an OPC as a sole proprietorship. The Companies Act classifies the OPC as a private entity by subscribing his / her name in the Section 3 Memorandum of 2013 and it must comply with the requirements of this Act with respect to the merger. OPC is not allowed to conduct non-banking financial activities such as investing in securities of other companies. It cannot even be included as a non-profit organization (NPO).OPC is a combination of a private company and a sole proprietor. It has both advantages and disadvantages but it is definitely beneficial for small entrepreneurs. It helps small entrepreneurs get loans and other benefits under SSI