Convert OPC to Private Limited Company

Explore funding options to grow your business from OPC to Pvt. Ltd

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    Know about conversion of OPC to a Private Limited Company

    Transforming a One Person Company (OPC) into a Private Limited Company (PLC) can unlock various advantages, including enhanced fundraising opportunities. An OPC can voluntarily convert into a PLC without needing to meet the typical requirements for paid-up share capital or average annual turnover. To initiate the conversion, an application must be submitted to the Central Government, accompanied by updates to the Memorandum of Association (MoA) and Articles of Association (AoA). The company’s legal status remains intact post-conversion, along with its rights and obligations. Following the conversion, the company must appoint at least two shareholders and directors to meet the statutory requirements. This transition facilitates growth prospects and expands funding options, such as private placements, ESOPs, and more.

    Benefits of Conversion of OPC to a Private Limited Company

    Easier to Raise Funds

    Raising capital as a private limited company is relatively straightforward, as it allows for the issuance of shares and offers various methods for funding, including private equity, employee stock ownership plans (ESOPs), and other financial strategies.

    Taxation Benefits

    A One Person Company is not distinct under the Income Tax Act and is thus treated like other companies for tax purposes. Private companies fall under a 30% tax rate on their total income. Consequently, from a taxation standpoint, the One Person Company structure may be less advantageous, as it incurs a substantial financial burden.

    Limited Liability of Owners

    The company's liabilities or debts do not encumber the owner's personal assets. The owner's responsibility is limited exclusively to the unpaid amount of their subscribed capital.

    Separate Legal Existence

    When a Private Limited Company is registered, it becomes a distinct legal entity in the eyes of the law, separate from its owners and managers. The company can conduct transactions under its own name, including opening a bank account, owning assets, and entering into contracts with other parties. Additionally, it has the legal authority to initiate lawsuits against third parties.

    Documents Required to convert OPC to Pvt Ltd company

    PAN Card

    PAN Card of all partners and the firm Foreign nationals may provide passport

    NOC from owner

    No Objection Certificate to be obtained from the owner of registered office

    ID Proof

    Aadhar Card/ Voter ID/ Passport/ Driving License of all partners

    Rent Agreement

    Rent Agreement of the registered office should be provided, if any

    Photograph

    Latest Passport size photograph of all partners

    RoF

    Certificate In case the partnership firm is registered, RoF certificate is compulsory

    Business Address Proof

    Electricity Bill/ Telephone Bill of the registered office address

    Need assistance? Don’t worry, experts are here to help!
    Call us at: 1800 313 4151 or Email us: support@taxpen.in

    Convert into Partnership in 3 Easy Steps

    1. Answer Quick Questions
    • It takes less than 10 minutes to fill in our questionnaire
    • Provide basic details & documents required for proprietorship to partnership conversion
    • Make payment through secured payment gateways
    2. Experts are Here to Help
    • Assigned Relationship Manager
    • Drafting of Partnership Deed
    • Payment of Stamp Duty on Deed
    • Notary of Partnership Deed
    • Application for PAN and TAN
    3. Your Business is Established
    • All it takes is 12 working days*

    Process to convert proprietorship to LLP

    Day 1-2

    • Consultancy and assistance for conversion
    • Collection of basic information & documents

    Day 3– 5

    • Application for Digital Signature Certificate (DSC)
    • Application for DIN allotment of Designated Partners

    Day 6– 7

    • Checking Name availability
    • Application for Name Reservation

    Day 8 – 12

    • Drafting the incorporation document
    • Filing form for converting sole proprietorship to LLP
    • Certificate of Incorporation

    Day 13– 18

    • Application for PAN and TAN of LLP
    • Drafting of LLP Agreement, with conversion clause

    Day 19– 21

    • Payment of Stamp Duty
    • Filing of LLP Agreement with MCA
    • Government processing time

    OPC to Private Limited Company