Convert Proprietorship to OPC

An One Person Company (OPC) is an enhanced version of a sole proprietorship firm, and it is an ideal business structure for medium-sized companies. Converting a sole proprietorship into an OPC is a wise business decision as it provides the single promoter with complete control over the company while also protecting their personal assets by limiting their liabilities. The owner of an OPC is also a shareholder, and like a Private Company, an OPC can appoint a separate individual as director to manage the business. However, it is mandatory for an OPC to appoint a nominee in case of any eventuality.

Benefits of OPC over sole proprietorship

Separate Legal Entity hence limited liability

Protection of the company’s personal assets assures that the owner has limited liability to the extent of his/her own share.

Opens better business avenue's

When compared to proprietorship firms, large organizations prefer dealing with OPCs. OPCs are registered similarly to private companies, which are a trusted form of business, making it easier for them to obtain financing from financial institutions. This gives suppliers and customers a sense of confidence in the business.

An easy to manage structure

The structure of an OPC is easily manageable since it only has one member. It is not necessary to hold annual or additional general meetings, and decisions can be made quickly without waiting for anyone's approval, as the single member is the sole authority.

Organized Structure

An OPC provides a structure similar to that of a private limited company, resulting in a more organized business with the added benefit of limited liability. On the other hand, a sole proprietorship lacks an organized structure.

Documents Requirement

Identity Proof

Scanned copy of PAN Card of all directors, nominee and Aadhar card/ Voter ID/ Passport/ Driving License.

Address Proof

Latest Bank statement/ Utility bill in the name of director and nominee which should not be older than two months

NOC from the owner

No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property)/ Registry Proof or House Tax Receipt (in case of owned property)

Consent of nominee

Written consent of nominee is required to be filed with the Registrar of Companies (RoC)

Passport size photograph

Latest Passport sized photograph of the directors and nominee.

Convert into OPC in 3 easy Steps

1. Answer Quick Questions

It takes less than 10 minutes to fill in our Questionnaire
Provide basic details & documents required for registration
Make payment through secured payment gateways

2. Experts are Here to Help

Assigned Relationship Manager
Procurement of Digital Signatures (DSC)
Application for Name Reservation
Documents drafting including MOA and AOA
Certificate of Incorporation

3.Your Company is Registered

All it takes is 12 – 15 working days*

_{*Subject to Government processing time}

Process of converting Proprietorship to OPC

Day 1

Application for Digital Signature Certificate
132

Day 2 - 4

Checking Name availability
Application for Name Reservation under “RUN“
Reservation of Name

Day 5 - 8

Drafting of MoA, AoA & other documents
Payment of Stamp Duty
Notarization of required documents

Day 9 - 10

Filing application for company registration
Application for DIN Allotment
Application for PAN and TAN of company

Day 11 - 15

Government processing time

Explore conversion of proprietorship to one person company registration in India

Frequently Asked Questions

The capital requirement of OPC and a private limited company are the same. It needs an authorized capital of ₹1 lakh, to begin with. But, none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business. The capital should not be more than ₹50 lakh during incorporation.

Once a Company is incorporated, it will be active and in-existence as long as the annual compliance is met regularly. In case, annual compliance is not complied with, the Company will become a Dormant Company and may be struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.

An OPC limited by shares must comply with the following requirements: o Must have a minimum authorized share capital of ₹ 1 Lac. o Transfer of shares to anyone else is not allowed. o An OPC is prohibited from giving any invitations to the public to subscribe to the securities of the company. When the OPC limited by shares or by guarantee, enters into a contract with the sole member of the company who is also the director of the company; the terms of contract or offer must be recorded in writing. Also, the same must be contained in a memorandum or recorded in the minutes of the Board meeting held next after entering into the contact. An OPC must inform the Registrar about every contract entered into by the company with the sole member of the company within a period of fifteen days from the date of approval.

No, an individual can form only one OPC at a time. The rule is the same for the nominee director too.

To register One Person Company (OPC) in India, acquiring the DSC (Digital Signature Certificate) and DIN (Director Identification Number) by all the directors and Subscriber to MOA (owner) along with the Nominee is mandatory. The Registered Office shall also be in existence for online Private Limited Company Registration.

The promoter of the company should make sure that the proposed name of the OPC for online registration is very unique. Further, all the documents with respect to the Subscriber, Nominee and Directors as well as Registered Office shall be as per the requirement. To know more about choosing the name for the company, please visit here Mark Business Identity Wisely – Choosing the name of Company

An OPC can be converted into a Private or Public Company only after 2 years from the date of Incorporation.

The requirement to appoint a nominee is prescribed in order to retain the character of Perpetual Existence i.e. Uninterrupted Existence of the One Person Company. A nominee shall be an individual and is to be appointed at the time of incorporation of OPC. In the event of death or incapacity to enter into any contract by existing member, the nominee will become the member of one person company.

The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the OPC’s new member.