{"id":998,"date":"2025-07-31T00:00:00","date_gmt":"2025-07-31T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/procedure-for-converting-a-private-limited-company-to-an-opc\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"procedure-for-converting-a-private-limited-company-to-an-opc","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/procedure-for-converting-a-private-limited-company-to-an-opc\/","title":{"rendered":"Procedure for Converting a Private Limited Company to an OPC"},"content":{"rendered":"<h2 id=\"\"><strong id=\"\">Private Limited Company<\/strong><\/h2>\n<p id=\"\">A <strong id=\"\">Private Limited Company<\/strong> is a widely preferred structure for startups and growing businesses in India. It requires:<\/p>\n<ul id=\"\">\n<li id=\"\"><a href=\"https:\/\/razorpay.com\/rize\/blogs\/director-in-private-limited-company\/\">A minimum of 2 directors<\/a> and 2 shareholders<\/li>\n<li id=\"\">Limited liability protection<\/li>\n<li id=\"\">Separate legal identity<\/li>\n<li id=\"\">Mandatory compliance with the Companies Act, 2013<\/li>\n<\/ul>\n<p id=\"\">This structure is ideal for businesses seeking external funding and operational scale. However, it can become administratively heavy for a solo founder or small team.<\/p>\n<p id=\"\"><strong id=\"\"><em id=\"\">Related Read: <\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/blogs\/characteristics-of-private-limited-company\/\"><strong><em>Characteristics of Private Limited Company<\/em><\/strong><\/a><\/p>\n<h2 id=\"\"><strong id=\"\">One Person Company (OPC)<\/strong><\/h2>\n<p id=\"\">An <strong id=\"\">OPC<\/strong> is a simplified structure designed for solo entrepreneurs who want the benefits of a corporate entity without the complexities of a Private Limited Company. Key features include:<\/p>\n<ul id=\"\">\n<li id=\"\">Only one shareholder and one nominee required<\/li>\n<li id=\"\">Limited liability protection<\/li>\n<li id=\"\">Separate legal identity<\/li>\n<li id=\"\">Lesser compliance burden<\/li>\n<\/ul>\n<p id=\"\">An OPC is ideal for solo founders, consultants, and professionals transitioning from informal to formal business setups.<\/p>\n<p><strong><em>Related Read: <\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/blogs\/advantages-of-one-person-company\/\"><strong><em>Advantages of One Person Company<\/em><\/strong><\/a><\/p>\n<h2 id=\"\"><strong id=\"\">Eligibility Criteria for Converting a Company into an OPC<\/strong><\/h2>\n<p id=\"\">As per Rule 7 of the Companies (Incorporation) Rules, 2014, a Private Limited Company can be converted into an OPC if:<\/p>\n<ul id=\"\">\n<li id=\"\">The company has <strong id=\"\">no more than one shareholder<\/strong> (at the time of conversion)<\/li>\n<li id=\"\">The shareholder is an <strong id=\"\">Indian citizen and resident in India<\/strong> (staying in India for at least 120 days during the financial year)<\/li>\n<li id=\"\">The company has <strong id=\"\">no outstanding liabilities or ongoing litigation<\/strong><\/li>\n<li id=\"\">The company\u2019s <strong id=\"\">paid-up capital is less than \u20b950 lakh<\/strong>, and its <strong id=\"\">annual turnover is under \u20b92 crore<\/strong> (as per past financials)<\/li>\n<\/ul>\n<p id=\"\"><em id=\"\">Note: These limits may be relaxed depending on MCA updates, so always check the latest provisions.<\/em><\/p>\n<h2 id=\"\"><strong id=\"\">Benefits of Converting a Company to an OPC<\/strong><\/h2>\n<ul id=\"\">\n<li id=\"\"><strong id=\"\">Lower compliance requirements<\/strong> \u2013 Less paperwork, fewer meetings<\/li>\n<li id=\"\"><strong id=\"\">Sole ownership with control<\/strong> \u2013 Ideal for solo founders<\/li>\n<li id=\"\"><strong id=\"\">Limited liability<\/strong> \u2013 Personal assets remain protected<\/li>\n<li id=\"\"><strong id=\"\">Separate legal entity<\/strong> \u2013 Recognised as a company under law<\/li>\n<li id=\"\"><strong id=\"\">Brand credibility<\/strong> \u2013 Enjoys more trust than sole proprietorships<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Process for Converting a Private Limited Company to an OPC<\/strong><\/h2>\n<p id=\"\">Here&#8217;s a step-by-step breakdown:<\/p>\n<h3 id=\"\"><strong id=\"\">1. Board Meeting<\/strong><\/h3>\n<ul id=\"\">\n<li id=\"\">Pass a resolution to convert the Pvt Ltd company into an OPC<\/li>\n<li id=\"\">Approve a draft of the special resolution for shareholder approval<\/li>\n<\/ul>\n<h3 id=\"\"><strong id=\"\">2. Shareholder Approval<\/strong><\/h3>\n<ul id=\"\">\n<li id=\"\">Convene an Extraordinary General Meeting (EGM)<\/li>\n<li id=\"\">Pass a <strong id=\"\">special resolution<\/strong> authorising conversion into an OPC<\/li>\n<\/ul>\n<h3 id=\"\"><strong id=\"\">3. Filing with ROC (Registrar of Companies)<\/strong><\/h3>\n<ul id=\"\">\n<li id=\"\">File Form <strong id=\"\">MGT-14<\/strong> within 30 days of passing the special resolution<\/li>\n<li id=\"\">File Form <strong id=\"\">INC-6<\/strong> with the following attachments: \n<ul id=\"\">\n<li id=\"\">Board &amp; shareholder resolutions<\/li>\n<li id=\"\">Updated MOA &amp; AOA (altered for OPC structure)<\/li>\n<li id=\"\">Declaration by directors and shareholders<\/li>\n<li id=\"\">Latest audited financial statements<\/li>\n<li id=\"\">Affidavit stating the company is free of debts and litigation<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3 id=\"\"><strong id=\"\">4. Scrutiny by ROC<\/strong><\/h3>\n<ul id=\"\">\n<li id=\"\">The Registrar reviews all filings and may request clarifications<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Issue of Certificate<\/strong><\/h2>\n<p id=\"\">Upon successful verification, the ROC issues a <strong id=\"\">Certificate of Incorporation<\/strong> reflecting the conversion from Private Limited to OPC. This certificate carries the same company registration number (CIN), but the company name is updated to include \u201c(OPC) Private Limited.\u201d<\/p>\n<h2 id=\"\"><strong id=\"\">Post-Conversion Requirements by the OPC<\/strong><\/h2>\n<p id=\"\">After conversion, the newly formed OPC must:<\/p>\n<ul id=\"\">\n<li id=\"\">Update PAN, TAN, GST registrations, bank accounts, contracts, etc.<\/li>\n<li id=\"\">Use the new name with \u201c(OPC) Private Limited\u201d on all communications<\/li>\n<li id=\"\">Maintain books of accounts and comply with annual filing requirements (though fewer compared to a Pvt Ltd)<\/li>\n<li id=\"\">Inform all stakeholders, vendors, and customers about the structural change<\/li>\n<\/ul>\n<h2 id=\"\"><strong id=\"\">Final Thoughts<\/strong><\/h2>\n<p id=\"\">If you&#8217;re a solo founder managing a Private Limited Company and want to streamline operations while retaining limited liability, <strong id=\"\">converting to an OPC could be a strategic move<\/strong>. With reduced compliance and full control, you get the best of both worlds- formal recognition with solo flexibility.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Explore the step-by-step procedure to convert a private limited company into a One Person Company (OPC) in India. Know the eligibility, documents, and legal process.<\/p>\n","protected":false},"author":1,"featured_media":999,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=998"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/998\/revisions"}],"predecessor-version":[{"id":1309,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/998\/revisions\/1309"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/999"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}