Proprietorship to OPC

Let’s Start The Conversation.

Overview
Required Documents
Benefits
Process
FAQs

Overview

A Proprietorship is the simplest business structure, owned and controlled by a single person. It is easy to start and run but does not provide separate legal identity or limited liability protection. As a business expands, the proprietor may face challenges like raising funds, managing risks, and gaining market credibility. To overcome these limitations, converting the proprietorship into a One Person Company (OPC) becomes a smart option.

An OPC is a company structure introduced under the Companies Act, 2013 that allows a single person to form a company with limited liability and separate legal status. It combines the benefits of a company with the simplicity of a sole proprietorship. The owner becomes the sole shareholder and director, and a nominee is appointed to take over in case of death or incapacity. This structure builds trust with customers, suppliers, and banks, making it easier to grow the business while maintaining complete control.

At BizGlobal, we make the entire conversion process simple and seamless. Our experts help you obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN), reserve the company name, draft the Memorandum of Association (MOA) and Articles of Association (AOA), and file incorporation forms with the Ministry of Corporate Affairs (MCA). We also help with transferring assets, licenses, and registrations from your proprietorship to the new OPC, ensuring a smooth and legally compliant transition.

Required Documents

REQUIRED DOCUMENT

PAN and Aadhar of proprietor
Identity and address proof of proprietor and nominee
Passport-size photographs of proprietor and nominee
Proof of business premises (rent agreement/ownership proof)
Latest utility bill of business premises
Proposed name of the OPC
Consent and identity proof of nominee
Bank statement of proprietor
Existing GST registration certificate (if any)
No Objection Certificate (NOC) from the property owner

Advantage

Limited Liability Protection

In a proprietorship, the owner is personally liable for all debts. An OPC offers limited liability, meaning the owner’s personal assets are protected, and their risk is limited to the amount they in... View More

Separate Legal Identity

An OPC is a distinct legal entity from its owner. It can own property, enter contracts, and sue or be sued in its own name. This improves the company’s credibility and makes it easier to do business... View More

Better Funding Opportunities

Banks and financial institutions are more comfortable lending to registered companies than to proprietorships. An OPC has better access to credit, which helps expand operations and scale the business ... View More

Full Control with Structured Governance

In an OPC, the sole owner enjoys complete control over decision-making while also getting the benefit of a formal corporate structure. This allows for quick decisions along with compliance and discipl... View More

Perpetual Succession

Unlike a proprietorship, which ends on the death of the owner, an OPC continues to exist. The nominee takes over the company if the owner dies or becomes incapable, ensuring business continuity and st... View More

CONVERSION PROCESS

Process to Convert a Proprietorship to One Person Company

Obtain DSC and DIN

Apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proprietor who will become the sole director of the OPC.

Submit RUN & Draft MOA & AOA

Submit name reservation through the Spice + Part A form on the Ministry of Corporate Affairs portal. Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) stating the objectives and internal rules of the OPC.