Become Govt. Certified GST Practitioner in just 58 hrs. Register Now!

Adding a business partner in opc (one person company)

13 September 2017

Hello,

I am the director of a OPC (One Person) Private Ltd company. Currently I am the sole owner.

Is it possible to induct a business partner to the company who will invest money in the company and get some stakes in the company?

I do not want to induct the person as director but as a stakeholder.

Is there any viable option?

Regards.

Reply
Follow
Share

5 Replies

Luvish Jain (Tax Consultant) (507 Points)
Replied 13 September 2017

nope opc can only have 1 member in itself...u can only appoint directors but no member or stakeholder...

Upgrade to CAclubindia Pro. Subscribe Now!

Luvish Jain (Tax Consultant) (507 Points)
Replied 13 September 2017

instead u can go for borrowings from him if he wants to invest and appoint him as director i think ur purpose shall be resolved.

Ekta Mohinani (5 Points)
Replied 13 September 2017

it is not possible to have partner in OPC but if other person who wants to invest also wants membership in the company then company can be converted into private limited company where you both can be owners.

Shrijay Sheth (Co-Founder) (2692 Points)
Replied 14 September 2017

As the name suggest, only one individual can be a member in the One Person Company. Where the owner is willing to add another person as stakeholder and owner of the company, the same is not allowed in any OPC as the main characteristic will devastated.

The way out here is to convert the OPC into Private Limited Company. The conversion procedure can fall either under Voluntary Conversion or Mandatory Conversion.

Here, the case will fall under Voluntary Conversion, which cannot be effected before passing of 2 years after incorporation of OPC. Only after completion of Two Years from incorporation application for conversion of OPC into Private Company can be made to MCA.

Experts at LegalWiz.in are here to help you for the conversion procedure at affordable prices in transparent and hassle-free manner. Consult experts at LegalWiz.in at 89806 85509 or drop an e-mail at support @ legalwiz.in, in case of any query or doubt for free consultation.

Mahendran Thangaraj (2 Points)
Replied 01 April 2019

We are running partnership company ( Two partner ), one of them willing to retired, so what is the procedure to change our firm to one person company...