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Conversion of Private Company to OPC

CA Sapna Ghelani (Chartered Accountant) (7550 Points)

20 February 2021

Can a Private Company convert to OPC as per the new amendment

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (5138 Points)
Replied 20 February 2021

yes. It can be done. To being the process of converting a private limited company into a OPC, a Board Meeting must be conducted to get in-principal approval of the Directors and fix date, time and place for conducting Extra-Ordinary General Meeting (EGM) to obtain the approval of the shareholders of the private limited company by means of a special resolution.

Hence, at the Board Meeting, a support notice of EGM along with Agenda and Explanatory Statement should be annexed to the notice of General Meeting according to the Companies Act, 2013. Further, a Director or Company Secretary should issue Notice of the Extra-ordinary General meeting (EGM) as permitted by the Board. The Notice of the Extra-ordinary General Meeting (EGM) should be issued to all Members, Directors and the Auditors of the company.

After passing the special resolution, the company must file the special resolution passed by shareholders for conversion of private limited company into One Person Company (OPC) with the associated Registrar of Companies. Hence, file form MGT-14 within a period of 30 days of passing of special resolution with the relevant Registrar of Companies, with approved fees and along with subsequent attachments: