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Process of Conversion of OPC Into Private or Public Company

As proposed in Budget Speech in respect of amendment in the provision of One Person Company. MCA has introduced “Companies (Incorporation), Second Amendment Rules, 2021 on 1st February 2021.

Most Important: Amendment in Process of Conversion of One Person Company to Private/ Public Company

Date of Effectiveness of these rules:

These new processes/rules came into effect on 1 April 2021.

Process of Conversion of OPC to Other Company:

STEP – 1: Holding of Board Meeting

OPC Shall hold a Meeting of the Board of Directors in case there is more than 1 director. In case OPC having only one director then the date of noting of resolution in the minute book shall be considered as the date of Board Meeting. Following resolutions shall be passed in BM:

  • Conversion of OPC into another type of Company
  • Alteration in MOA & AOA

STEP – 2: Alteration on MOA & AOA

OPC Shall alter its Moa & AOA by passing a shareholder resolution to give effect to the conversion.

Que: How to pass shareholder resolution in OPC?

As per Section 122(3), instead of holding of EGM or AGM, it shall be sufficient if, in the case of One Person Company, the resolution is communicated by the member to the company and entered in the minutes-book required to be maintained under and signed and dated by the member and such date shall be deemed to be the date of the meeting for all the purposes under this Act.

Steps of the passing of Resolution:

  • Noting in Minutes Book
  • Sign and date the Minutes
  • Extract of Minutes as CTC

STEP – 3: Increase in Number of Member & Directors:

OPC Shall increase the number of members and directors as per the requirements of the Act for such class of Company.

Increase in No. of Director: OPC shall pass board as well as general meeting resolution for the appointment of Director. After passing of resolution OPC shall file DIR-12 with ROC.

Increase in No. of Members: OPC shall increase the number of members by allotment of new shares or transfer of existing shares.

STEP – 4: Filing of INC-6:

OPC shall file e-form INC-6 along with the following documents;

  • Altered AOA and MOA
  • Copy of Resolution
  • List of proposed members and its director along with consent
  • List of Creditors; and
  • The latest audited balance sheet and profit and loss account.

STEP – 5: Issue of Certificate by ROC:

Once ROC satisfied that the requirement of this rule has been complied with, the ROC shall approve the form and issue the certificate.


Disclaimer: The entire contents of this document have been prepared based on relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness, and reliability of the information provided, I assume no responsibility, therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a piece of professional advice and is subject to change without notice. I assume no responsibility for the consequences of the use of such information.

IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF, OR IN CONNECTION WITH THE USE OF THE INFORMATION

DG TaxClue
CS Divesh Goyalhttp://csdiveshgoyal.in
CS Divesh Goyal is a Fellow member of ICSI, Practicing Company Secretary, and Steering Voice in the Corporate World. He is a Prop. at Goyal Divesh & Associates, Company Secretaries. He is a competent professional having enrich 6 years post qualification experience as Company Secretary with expertise in Corporate Law, FEMA, IBC, SEBI, RBI. He has written more than 600 editorials on Companies Act, 2013 to keep at pace with the latest changes and critically analyse the implications of various provisions of the Companies Act, 2013, Insolvency & Bankruptcy Code, 2016, FEMA, RBI, SEBI etc. He is a vibrant, sought after, and spellbinding speaker and has delivered more than 200 sessions on various aspects of Company Law at ICSI, ICAI, and online platforms. Apart from his passion for his work he also believes in elevating his profession and for that dream

1 COMMENT

  1. Sir Very Good Articles,
    Can we get the drafted documents for the conversion of Private Limited Company into One Person Company.

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