Overview
A One Person Company (OPC) is a great choice for solo entrepreneurs who want to start a business with limited liability and fewer compliance requirements. However, as the business grows, an OPC can face limitations such as restrictions on the number of shareholders, difficulties in raising equity funding, and reduced scalability. On the other hand, a Private Limited Company offers a corporate structure that allows multiple shareholders, easier access to funding, and greater credibility with investors, clients, and banks. That is why many growing OPCs convert into private limited companies to support their expansion plans.
The conversion is governed by the Companies Act, 2013 and must be approved by the Ministry of Corporate Affairs (MCA). It can be done voluntarily any time after two years of incorporation or compulsorily if the OPC crosses the threshold of paid-up capital of ?50 lakh or average annual turnover of ?2 crore. After conversion, the company becomes a separate legal entity with more than one shareholder and director. All assets, liabilities, and rights of the OPC get transferred to the new private limited company without affecting business operations.
At BizGlobal, we provide complete support to convert your OPC into a private limited company quickly and smoothly. Our team takes care of preparing documents, drafting resolutions, obtaining approvals, and filing all forms with the Registrar of Companies (RoC). We ensure a legally compliant and hassle-free conversion so that you can focus on scaling your business without worrying about legal complexities.
