Unlock greater funding opportunities and business scalability by converting your One Person Company (OPC) into a Private Limited Company.
Converting a One Person Company (OPC) into a Private Limited Company (PLC) unlocks new growth opportunities, including easier access to funding. An OPC can voluntarily convert without fulfilling the usual paid-up capital or turnover requirements. The process involves applying to the Central Government after amending the Memorandum of Association (MoA) and Articles of Association (AoA). Post-conversion, the company retains its legal existence along with all rights and liabilities. The newly converted Private Limited Company must have at least two shareholders and directors, enabling it to access additional funding options such as private placements, ESOPs, and more, thereby supporting business expansion.
Raising funds becomes simpler for a Private Limited Company, as it can issue shares and access diverse funding options, including private equity, ESOPs, and more.
The personal assets of the company’s owners remain protected, with their liability limited only to the unpaid portion of the capital they have subscribed.
One Person Companies (OPCs) are not separately classified under the Income Tax Act and are taxed like other companies. Private companies are subject to a 30% tax on their total income, making OPCs less tax-efficient due to this comparatively higher tax liability.
Upon registration, a Private Limited Company becomes a separate legal entity distinct from its owners and directors. It can operate independently—opening bank accounts, holding assets, entering into contracts, and initiating or facing legal proceedings in its own name.
Aadhar Card, Voter ID, Passport, or Driving License of all shareholders and directors.
Latest telephone bill, electricity bill, or bank statement of all shareholders and directors.
Latest passport-sized photographs of all shareholders and directors.
For NRIs or foreign nationals, the partner’s documents should be either notarized or apostilled.
Duly certified copy of the latest audited financial statements
Submit the Certificate of Incorporation along with the Memorandum of Association (MoA) and Articles of Association (AoA).
Call us at: 9414883452 or Email us : contact@submitreturn.com
*Subject to Government processing time
As per Rule 6 of the Companies (Incorporation) Second Amendment Rules, 2021, there are no longer any specific conditions to be fulfilled for conversion. However, prior to this amendment, the following conditions applied:
– The paid-up share capital of the OPC exceeded ₹50 lakh
– The annual turnover exceeded ₹2 crore for three consecutive years
Call us at: 9414883452 or Email us : contact@submitreturn.com
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Explore funding options to grow your business from OPC to Pvt. Ltd
