Conversion of a One Person Company (OPC) into a Private Limited Company in Gwalior, Madhya Pradesh

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

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 Gwalior, Madhya Pradesh.

Conversion of a One Person Company (OPC) into a Private Limited Company in Gwalior, Madhya Pradesh

Located in central India, M.P. is popularly known as the ‘heart of India’. Due to its geographical location M.P. is a major beneficiary of various mega infrastructure projects, with both North-South corridor and East-West corridor passing through it. Excellent support of infrastructure is present in Madhya Pradesh for industrial growth. M.P. has a robust network of railways with 550 trains crisscrossing on daily bases. M.P. also has network of 5,000+ Kms of National Highways, 5 commercial airports that operate 100+ daily flights and 6 Inland container depots (ICDs). Indore, a major city of Madhya Pradesh stood 1st while the capital, Bhopal has been rated 2nd cleanest city in India in by Government of India in the Cleanliness Survey 2018.

Madhya Pradesh also has large mineral resources and produces 14% of India’s total cement production. M.P. has an oil refinery at Bina with capacity of 6 MMT annually. The state is power producer with installed power capacity of over 23,400 MW; out of which 35% is contributed by renewable energy. The state is the highest producer of wheat and also produces other varieties of horticulture crops due to which it offers a lucrative opportunity for food processing industry. Madhya Pradesh also offers opportunities in textile and automobile manufacturing, agriculture equipment and engineering manufacturing, and so many more. Madhya Pradesh is a leading producer of manganese, coal, limestone, dolomite, glass sand and copper.

Madhya Pradesh is the largest producer of various agricultural products such as soybean, garlic and pulses while it ranks 2nd in the production of floriculture. Asia’s thickest coal seam with the depth of 138 m is in coalfield in Singrauli.

Not only this, as per the latest report by World Bank, Madhya Pradesh ranked 4th 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 Gwalior, Madhya Pradesh, 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 Gwalior, Madhya Pradesh

Voluntary conversion of a One Person Company (OPC) into a Private Limited Company in Gwalior, Madhya Pradesh 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 Gwalior, Madhya Pradesh.

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

Compulsory Conversion of One Person Company (OPC) to Private Limited Company in Gwalior, Madhya Pradesh

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 Gwalior, Madhya Pradesh 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 Gwalior, Madhya Pradesh

Board Resolutions for conversion One Person Company OPC to Private Limited Company in Gwalior, Madhya Pradesh

• 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 Gwalior, Madhya Pradesh, 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 Gwalior, Madhya Pradesh remain the same.