Conversion of a One Person Company (OPC) into a Private Limited Company in Cuttack, Odisha

A One Person Company (OPC) can be converted in to a Private Limited Company in Cuttack, Odisha as per Section 18 of the Companies Act, 2013. There are two ways through which a One Person Company (OPC) in Cuttack, Odisha 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 Cuttack, Odisha.

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 Cuttack, Odisha.

Conversion of a One Person Company (OPC) into a Private Limited Company in Cuttack, Odisha

The state of Odisha is hub for mineral (value more than 50,000 crore) in India with largest capacity to produce aluminum, steel and stainless steel. The aluminum produced in Odisha is almost 50% of the overall produce across India. Odisha is situated at eastern coast of India with coastline of 480 Kms and three ports Paradip, Dhamra and Gopalpur. Paradip is among the largest port of India with capacity of 127MMT. The state is well connected within and outside state with more than 250,000 Kms of road network and 15 National Highways. One of the major cities of Bhubaneswar, the state’s capital, was ranked first in the ‘Smart City Challenge’ of Government of India. Odisha started an initiative of Single Window system with the name “Government of Odisha – Single Window for Investor Facilitation and Tracking” (GO SWIFT) to cover the comprehensive life-cycle of any and every industrial projects meant for ime bound approval and hassle free investment in Odisha.

Not only this, as per the latest report by World Bank, Odisha ranked 34th 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 Cuttack, Odisha, 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 Cuttack, Odisha

Voluntary conversion of a One Person Company (OPC) into a Private Limited Company in Cuttack, Odisha 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 Cuttack, Odisha.

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

Compulsory Conversion of One Person Company (OPC) to Private Limited Company in Cuttack, Odisha

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 Cuttack, Odisha 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 Cuttack, Odisha

Board Resolutions for conversion One Person Company OPC to Private Limited Company in Cuttack, Odisha

• 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 Cuttack, Odisha, 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 Cuttack, Odisha remain the same.