{"id":66,"date":"2016-04-13T07:53:14","date_gmt":"2016-04-13T07:53:14","guid":{"rendered":"http:\/\/corpstore.in\/blog\/?p=66"},"modified":"2016-04-13T07:55:20","modified_gmt":"2016-04-13T07:55:20","slug":"convert-one-person-company-private-public-company","status":"publish","type":"post","link":"https:\/\/www.corpstore.in\/blog\/convert-one-person-company-private-public-company\/","title":{"rendered":"Convert one person company into a private or public company"},"content":{"rendered":"

As provided in rule 6 of the companies (incorporation) rules 2014. Where the paid up capital of the one person company (OPC<\/strong>) exceeds fifty lakes<\/span>. The average turnover during the relevant period exceeds Rs. 2 crores<\/span>. It shall cease to be a<\/span> one person company.<\/strong> It may please be noted that the above rule 6 has been amended by the companies (incorporation) rules 2015. <\/a>It may effect from 01.05.2015. Prior to the above amendment. The above thresholds were mutually exclusive in that an one person company<\/strong> (OPC<\/strong>) would cease to function as one. If either its paid up share capital exceeded Rs. 50 lakhs. It’s average turnover during the relevant period exceeds Rs. 2 crores.<\/p>\n

If the above thresholds are not exceeded. The one person company (OPC<\/strong>) can opt to convert itself into a public limited company or private limited company<\/strong> on its own violation. The relevant period means the period <\/span>instantly <\/a>preceding three consecutive financial years.<\/p>\n

\"One<\/p>\n

Convert one person company into a private or public company<\/h2>\n

The following steps are to be compiled with if you want to convert your one person company (OPC<\/strong>) into a private limited company or public limited company<\/strong> follow these registration steps.<\/p>\n

1.The conversion becomes automatically necessary due to the thresholds above being breached as stated. Under the rule 6 of the companies (Registration<\/strong>) rules 2014. You will have to convert yourself into. <\/a>Either a private limited company or a<\/span> public limited company<\/strong>. It converts within<\/span> six months from the date on which the prescribed thresholds are exceeded.<\/p>\n

2.If you wish to convert yourself into a private limited company.<\/strong> Ensure that you have at least two members. You will have to appoint at least two directors.<\/p>\n

3.For the above conversion, you will have to amend your memorandum of association (MoA). The articles of association (AoA).<\/p>\n

4. <\/span>If you wish to convert yourself into a public limited company<\/strong>. There should be at least<\/span> seven members in a company<\/strong>. There should be at least<\/span> three directors. The MoA and articles will also have to be amended. <\/span><\/a>The amendment shall need a special resolution<\/span> of the OPC<\/strong> is passed. Either at the general meeting or AGM. The date on which special resolution for this purpose has been communicated by the member of the company<\/strong>. It shall be deemed to be the date of the general meeting<\/span>.<\/p>\n

5. <\/span>Once the MoA and articles have been amended. After the procedure laid down in section 122 (<\/span>3). Please give notice to the ROC in form no. INC-5 within 60 days from the date on. Which the thresholds laid down in rule 6 (1) of the company (Registration) rules 2014<\/strong>. It will be indicated that the status of the company<\/strong> as an OPC has ceased. The form also includes an assertion that as the company’s paid up capital<\/a> has exceeded Rs. 2 crores<\/span>. The company<\/strong> is required to convert itself. Either a private limited company or a<\/span> public limited company<\/strong> depending upon the manner in which the MoA and AoA of the OPC have been amended.<\/p>\n

The following documents will have to be filed with Form<\/p>\n

(a) Copy of board resolution authorizing issue of notice.<\/p>\n

(b) Copy of special resolution for amending the MoA and AoA.<\/p>\n

(c) Copy of duly attested latest financial statement.<\/p>\n

(d) Certificate from a CA to<\/span> practice certifying that average annual turnover has exceeded Rs. 2 <\/a>crores.<\/span> during the relevant period of their registration<\/strong> <\/span>.The paid up capital of the company<\/strong> exceed Rs. Fifty<\/span> lakhs<\/span>.<\/p>\n

6. If there is any failure on the part of the one person company (OPC).<\/strong> Any officer of the one person<\/strong> company<\/strong> in complying with Rule 6 of the company (Registration)<\/strong> rules 2014. The OPC<\/strong> or any office has paid<\/span> a fine of Rs. 10,000. The fine which may extend to rupees one thousand.<\/p>\n

7. If the thresholds stated above are not exceeded. You my convert the one person company<\/strong> voluntarily into. Either a private limited company or public limited company<\/strong> for their registration<\/strong>. You may increase the minimum number of members to either two or seven. Depending on whether you wish to change into <\/a>a private limited company or public limited company<\/strong>.<\/strong> In a company<\/em> the <\/span>number of directors will also have to increase two or three. You will also have to increase<\/span> the paid up capital to Rs. 50 losses<\/span>. Which is the minimum amount necessary for conversion in the company<\/strong><\/span> (Registration) rules 2014..<\/strong><\/p>\n

You will also make appropriate alterations. The MoA and AoA by following the required procedure <\/a>for such registration<\/strong>. If you are doing your business in Coimbatore<\/em>. The registration of your new company<\/strong> registration may take<\/span> place in Coimbatore<\/strong> registered office. It may be your private limited company or public limited company<\/strong>. The both company registration is registered in<\/span> Coimbatore office.<\/strong> The section 18 of the act complies<\/span> with the requirements.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

As provided in rule 6 of the companies (incorporation) rules 2014. Where the paid up capital of the one person company (OPC) exceeds fifty lakes. The average turnover during the relevant period exceeds Rs. 2 crores. It shall cease to be a one person company. It may please be noted that the above rule 6 … <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[19],"tags":[],"class_list":["post-66","post","type-post","status-publish","format-standard","hentry","category-opc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/posts\/66","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/comments?post=66"}],"version-history":[{"count":3,"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/posts\/66\/revisions"}],"predecessor-version":[{"id":70,"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/posts\/66\/revisions\/70"}],"wp:attachment":[{"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/media?parent=66"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/categories?post=66"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.corpstore.in\/blog\/wp-json\/wp\/v2\/tags?post=66"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}