Conversion of a One Person Company (OPC) into a Private Limited Company in Bilaspur, Chhattisgarh

A One Person Company (OPC) can be converted in to a Private Limited Company in Bilaspur, Chhattisgarh as per Section 18 of the Companies Act, 2013. There are two ways through which a One Person Company (OPC) in Bilaspur, Chhattisgarh can be converted into a Private Limited Company i.e. voluntarily conversion or mandatorily conversion. In any of these conversions, the Memorandum of Association and Article of Association of the One Person Company (OPC) needs to be changed as per the section 18 and section 122 of the Companies Act, 2013 in Bilaspur, Chhattisgarh.

As per Section 18 Companies Act, 2013 following conditions need to me made:

• • Get written consent from all the creditors
  • Pass the resolution of conversion

• Minimum paid-up capital requirement of Rs 1,00,000 to be met
• Minimum number of 2 directors and 2 members need to be met

Form INC-6 is to be filed to the Ministry of Corporate Affairs for conversion of One Person Company (OPC) into a Private Limited Company in Bilaspur, Chhattisgarh.

Conversion of a One Person Company (OPC) into a Private Limited Company in Bilaspur, Chhattisgarh

Chhattisgarh is the state situated in the center of India sharing its border with 7 other states and as such has market access to about 52 crore people across these states. Its capital city, Naya Raipur, is India’s first greenfield smart city. The state is well connected through its extensive network of rail, road and air. With potential of becoming logistics hub, it is one of the highest contributor to railway freight.

The main Industries in the state of Chhattisgarh includes Iron & Steel, Cement, Agriculture and thermal power with its state-of-the-art facilities in the industrial areas. Chhattisgarh accounts for about 15% of the total steel production in India.

Chhattisgarh is also known as the ‘Rice Bowl of India’, with rice being the major crop covering 66% of the total cropped area. Chhattisgarh is major producer of cereals, maize, pulses and horticulture produce like guava, turmeric, tomato, ginger, cabbage and peas. Chhattisgarh is the greenest state of India with 44% of its area under forest cover. The state is rich in variety of species of medicinal plants with active promotion of usage of ethnomedicine, that is practised by aboriginal tribes since ages. Chhattisgarh has a major contribution of about 43% of the total lac production in India.

Not only this, as per the latest report by World Bank, Chhattisgarh ranked 6th out of 36 states in terms of ease of doing business.

Two Types of Conversion

For converting a One Person Company (OPC) into a Private Limited Company in Bilaspur, Chhattisgarh, both voluntarily conversion and mandatory conversion, the provisions of Sec 18 of the Indian Companies Act of 2013, and the Rule 7(4) of the Companies (Incorporation) Rules of 2014 needs to be followed.

Voluntary Conversion of One Person Company (OPC) to Private Limited Company in Bilaspur, Chhattisgarh

Voluntary conversion of a One Person Company (OPC) into a Private Limited Company in Bilaspur, Chhattisgarh is only allowed after two years from the date of incorporation have been completed. However, if the paid-up share capital of the One Person Company (OPC) is more than Rs. 50 lakhs or if the average turnover is more than Rs. 2 crores then within two months of the phenomenon occur, the One Person Company (OPC) can be converted into a Private Limited Company in Bilaspur, Chhattisgarh.

One Person Company (OPC) has to file form INC 5 for informing the registrar of companies about voluntary conversion in Bilaspur, Chhattisgarh within sixty days.

Compulsory Conversion of One Person Company (OPC) to Private Limited Company in Bilaspur, Chhattisgarh

The Companies Act, 2013 laid down certain conditions if a One Person Company (OPC) meets, the OPC needs to be compulsorily converted into a Private Limited Company in Bilaspur, Chhattisgarh within 6 months of meeting the following conditions:

• The paid capital of the One Person Company (OPC) exceeds Rs. 50 lakhs and
• The annual turnover of is more than Rs 2 Cr in three immediate previous consecutive financial years

The conversion is made by just passing a special resolution in the general meeting. It is checked for a No objection certificate in written from the creditors, and the other members before the resolution are passed.

Process to convert One Person Company OPC to Private Limited Company in Bilaspur, Chhattisgarh

Board Resolutions for conversion One Person Company OPC to Private Limited Company in Bilaspur, Chhattisgarh

• Shareholders of the One Person Company (OPC) hold a general meeting and pass the resolution to increase the number of directors and shareholders.
• To convert a One Person Company (OPC) to a Private Limited Company in Bilaspur, Chhattisgarh, there should be at minimum 2 shareholders and 2 directors.
• Shareholders pass a resolution to alter the Memorandum of Association and Articles of Association of the One Person Company (OPC).
• File the e-form INC-5 with registrar of companies within 60 days of crossing the threshold limits of the paid-up capital or the turnover, informing that it has ceased to be a One Person Company (OPC).
• Further file e-Form INC-6 on the website of MCA within 6 months from the date of conversion
• The introduction of One Person Company (OPC) into legal system came into existence to encourage the entrepreneurs to enter into the corporate world. It will not only enable the individual capabilities to contribute economic growth but will also generate employment opportunity.

Provisions of Companies (Incorporation) Rules of 2014 followed by the newly formed Private Limited Company. The existing debts, liabilities, obligations or contracts of the One Person Company (OPC) in Bilaspur, Chhattisgarh remain the same.