Private Limited to One Person Company
The conversion of Private limited company into One Person Company (OPC) is authorized under the Companies Act, 2013. A Private limited company can be converted into an LLP only if the company has a paid-up capital less than Rs.50 lakh and an annual turnover below Rs. 2 crores for the past three consecutive years.
Advantages of One Person Company
Limits Director’s Liability
Every business needs some form of investment to keep the business alive, and mostly they go for procuring loans.
A sole proprietorship company cease to exist after the death of the business owner. But, in case of an OPC which operates as a separate legal entity would pass on the nominee director and continue to exist.
OPC is completely controlled and managed by a single owner with few compliances to be followed. So, annual filings are much reduced, as is work relating to share certificates and the statutory registers.