1. Learn

Converting an OPC

Conversion of an OPC into private limited company, public company, limited liability partnership is possible. But, conversion of OPC into sole proprietorship, partnership is not yet possible.

Many sole entrepreneurs are attracted to the new concept of One Person Company because of its advantages of sole ownership and low compliances. But with the growth of the business and revenue, more requirements are needed which will be achieved by the conversion of the company.

Advantages of conversion

  • No stamp duty is required to be paid on the transfer of all movable and immovable properties.
  • No capital gain tax will be charged on transfer of the property.
  • The goodwill of the name of the company is kept intact.
  • If any depreciation and loss is there in the company then such loss can be carry forward.

The following links make you understand better with the required steps for the possible conversion of One Person Company into other business entity:

 

As per the provisions of the Companies Act, 2013 and Companies Rules, an OPC can be converted only into private limited company or public company by way of mandatory conversion or voluntary conversion.

Related Articles