06 September 2014
Dear experts, I am having a doubt regarding provision on conversion of pvt to opc. Law says if a pvt company has paid capital its equal less than 50 laks (or) avg turnover is less than two crores than it can convert.
Suppose if a Pvt ltd company has paid up capital less than fifty lakhs but its avg turnover is more than 2 crores.Can this Pvt ltd be converted into OPC.
08 September 2014
According to my view, in your case it will not possible. As per rule 6 of Companies (Incorporation) Rules, 2014, Where the paid up share capital of an One Person Company exceeds fifty lakh rupees or its average annual turnover during the relevant period exceeds two crore rupees, it shall cease to be entitled to continue as a One Person Company.
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