Private Limited Company to One Person Company
A company that is privately owned is called a private limited company, or LTD. This means that the business owner's liability is limited to the value of their shares, and there can only be 50 shareholders. It also makes it hard for shareholders to sell their shares in public.
A one-person company is a business that has limited liability and is run by one person. One Person Company is a legal entity distinct from its members that protects those who own shares in it. In the MOA or AOA, every one-person company must name a member to fill the position of director in case the main director isn't there.
Advantages of a one-person business
OPC has limited liability, like a private limited company, but not like a sole proprietorship.
There are no formalities for the board meeting.
A one-person company doesn't have to hold board or general meetings.
More money from being a business owner
Because of the risks that come with a sole proprietorship, interested investors may not be interested in a sole proprietorship.
has a good name in the market
Since a one-person company is like a private limited company, it attracts good people who can help the company grow.
single director requirement
To set up a one-person company, you only need one director.
Ease in Management
Compared to a private limited company, a one-person company is easier to run.
offers its members limited liability.
Unlike a sole proprietorship, it protects its shareholders by keeping personal assets from being used to pay for business debts.
Shares can be easily moved.
In a one-person company, it's easy to transfer shares. Just fill out the share transfer form and give it to the person who wants to buy the shares.
Criteria for a Private Limited One-Person Company in India
You must meet the following requirements before forming a private limited company for a one-person business:
1. All of the board members must agree on the decision to convert.
2. Your net worth should be much lower than it is now so that you can justify this change (which is a downgrade, ).
3. You must choose someone to run your one-person business if you die or become unable to do so.
4. You can't do this conversion until you get permission from your creditors.
For your private limited company to become a one-person company, the directors have to sign an affidavit saying that they are willing to step down.
Documents Required in India to Convert a Private Limited Company to a Sole Proprietorship
E-Form MGMT 14
A copy of the Special Resolution must be filed with the Registrar of Companies with the following attachments:
1. Notice of an extra general meeting (EGM), held to get approval from directors to change the private limited company to a one-person company.
2. A real, certified copy of the Special Resolution
3. Changes to the Articles of Association
4. Changes to the Articles of Association
5. It is not necessary to have a true certified copy of the board resolution.
E-Form, Inc. has 6
application to change from a private limited company to a one-person company, along with the following documents:
1. A list of all members and creditors
2. Most recent financial report
3. A letter from the members and creditors saying they have no objections
4. Affidavit Letter of Consent from the Directors
Process for Changing a Private Limited Company to a One-Person Company in India
The following steps explain how to change a private limited company into a one-person company model:
Gather the board members for an EGM.
Invite your members, shareholders, directors, creditors, suppliers, and most of the other people who are always involved with your private limited company to an extraordinary general body meeting.
Get the permission letter from the board.
Get a letter of consent from the directors if you want to start this change.
Get a NOC from your creditors.
Get "no objection" from the people in your company and the people who owe money to your company.
Alter MOA and AOA
Both the Memorandum of Association and the Articles of Association need to be changed.
Get the letter of permission.
Fill out Form INC-6 online through the MCA's online portal. When you do, upload the letters of consent and any other documents you need.
Get the Certificate of Incorporation for a One-Person Company
If approved, your business will change from a private limited company to a one-person company, which is a one-person business.
We can help you change your private limited company to a one-person company in India.
Certpedia offers complete solutions for changing from a private limited company to a one-person company. Our services include:
1. arranging a meeting with you
2. Help with getting the creditors to give their NOC.
3.Putting in the application to change
4.Ensuring that your business entity is changed in the manner that you desire.
5. Going over the application and making any necessary changes.
Standard Solutions is a top legal consulting firm that offers a full range of services for converting a private limited company to an OPC.
So, take the first step toward this change by getting in touch with us.