To avail the advantages of One Person Company, many of the Corporates are willing to convert their small Private companies into One Person Company (OPC). The conversion will reduce the compliance manifold, this is one of the key reasons of such a conversion.
Which Private Company can convert into OPC:
Any private company other than a Company registered under section 8 of the Companies Act, 2013 (or section 25 of the Companies Act, 1956) having a paid-up capital of less than Rs. 50 Lac and an average turnover of less than Rs. 2 Crore, in the specified period, can convert itself into OPC.
Laws governing conversion of Private Company Into OPC:
- Section 18 of Companies Act, 2013
- Rule 7(4) of the Companies (Incorporation) Rules, 2014