Various Legal And Regulatory Requirements For Procedure For Conversion Of OPC Into Private Company
One of the most common ways to convert a Person Company (OPC) into a Private Limited Company (PLC) in India is through the process of conversion. The process of conversion involves several steps and requires compliance with various legal and regulatory requirements.
Below, we will explore the procedure for the conversion of OPC into a private company. We will also learn about the various legal and regulatory requirements that need to be fulfilled.
The first step in the conversion process is to obtain a Director Identification Number (DIN). Also, obtain Digital Signature Certificate (DSC) for all the proposed directors of the private limited company.
The DIN is a unique identification number that is issued by the Ministry of Corporate Affairs to directors of companies. The DSC is a digital signature certificate that is used to sign electronic documents.
Once the DIN and DSC have been obtained, a board meeting must be held. This is to approve the conversion of the OPC into a private limited company. At the meeting, the board of directors must pass a resolution to approve the conversion. They must authorize a director to file the necessary forms with the Registrar of Companies (ROC).
The next step is to file the necessary forms with the ROC to complete the conversion process. The following forms must be filed with the ROC:
• Form INC-6: This form is used to apply for the conversion of an OPC into a private limited company.
• Form MGT-14: This form is used to file the special resolution passed by the board of directors.
• Form DIR-12: This form is used to file the appointment of directors of the private limited company.
After the necessary forms have been filed with the ROC, the ROC has verified and approved the documents. The ROC will issue a Certificate of Incorporation (COI). The COI is a document that serves as proof of the registration of the private limited company with the ROC.
Once the COI has been obtained, the private limited company must update its bank account, PAN, and other registrations. This is done to reflect the change in its legal status. This includes updating the company's bank account, PAN card, GST registration, etc.
The final step in the conversion process is to transfer the assets and liabilities of the OPC. This is transferred to the newly formed private limited company. This includes transferring any existing contracts, licenses, permits, leases, and other agreements to the new company.
Converting an OPC into a private limited company is a complex process that requires compliance with various legal requirements. By following the above procedure, an OPC can be converted into a private limited company with relative ease.
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