What is One Person Company (OPC)?

Section 2(62) of Companies Act defines a one-person company as a company that has only one person as to its member. Furthermore, members of a company are nothing but subscribers to its memorandum of association, or its shareholders. So, an OPC is effectively a company that has only one shareholder as its member.

What is Private Limited?

Section 2(68) of Companies Act, 2013 defines private companies. According to that, private companies are those companies whose articles of association restrict the transferability of shares and prevent the public at large from subscribing to them. This is the basic criterion that differentiates private companies from public companies.

What is Public Limited?

A public company is a corporation whose ownership is distributed amongst general public shareholders via the free trade of shares of stock on exchanges or over-the-counter markets. Although a small percentage of shares are initially floated to the public, daily trading in the market determines the value of the entire company.

Procedure for Conversion of OPC to Public Limited & Private Limited

Prepare notice of board meeting along with draft resolution(s) to be passed in the board meeting.

File e-Form DIR-12 along with its attachment with the Registrar of Companies within 30 days of appointment of new directors.

File an application to the Registrar of Companies in e-Form INC-5, within a period of 60 days from the last date of applicability, along with attachments informing about it has cessation as a one person company which is now required to convert itself into a private limited company or a public limited company.

File an application for conversion of one Person Company into public limited company or private limited company in e-Form INC-6 with the Registrar of Companies along with the attachments within 30 days from the date of passing of resolution of such conversion.

In case of voluntary conversion, file e-Form MGT-14 along with attachments with the Registrar of Companies within 30 days of passing of resolution.

The Registrar of Companies will issue fresh Certificate of Incorporation in Form INC-25 with new name.

Arrange new Permanent Account Number card with new name of the company and Update company’s bank account and Intimate all the concerned authorities like tax, state government, etc. about the status change