Conversion of a One Person Company (OPC) into a Private Limited Company in Vijayawada, Andhra Pradesh

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

Conversion of a One Person Company (OPC) into a Private Limited Company in Vijayawada, Andhra Pradesh

Andhra Pradesh has one of the most prominent connecting points with major world markets. The state is on the eastern coast of India and with the coastline of 974 kms (Second longest in India) it has established itself a as logistics marvel. It has 6 ports, 6 airports, over 1,23,000 kms of road network and 2,600 kms of rail network. Andhra Pradesh has an installed power capacity of over 24,000 MW and offers round the clock power supply. with the help of various industries such as information technology (IT), biotechnology, leather and textile, automotive and auto ancillary and a robust agriculture sectors Andhra Pradesh achieved an estimated growth rate of 11.02% in 2018-19, much higher than national average. Sri City inaugurated in 2015, is a Special Economic Zone (SEZ) that houses 150 companies from 27 countries, is an example of well-planned infrastructure for the development and growth of industries.

Andhra Pradesh has largest offshore gas field at KG basin in India. Andhra Pradesh is also the largest producer of palm oil and fruits in India.

Not only this, as per the latest report by World Bank, Andhra Pradesh ranked 1st 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 Vijayawada, Andhra 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 Vijayawada, Andhra Pradesh

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

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

Compulsory Conversion of One Person Company (OPC) to Private Limited Company in Vijayawada, Andhra 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 Vijayawada, Andhra 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 Vijayawada, Andhra Pradesh

Board Resolutions for conversion One Person Company OPC to Private Limited Company in Vijayawada, Andhra 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 Vijayawada, Andhra 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 Vijayawada, Andhra Pradesh remain the same.