Private Limited to One Person Company
A Private Limited Company can be converted into One Person Company, as per the Companies act, 2013.
A Private Company, other than a company registered under section 8 of the Act, having paid up share capital of Rs. 50 Lakhs or less or average annual turnover during the relevant period is two crore rupees or less may convert itself into one person company.
In other words a Private Company with paid up capital of more than 50 Lacs or average annual turnover of more than Rs.2 Crores, cannot convert itself into One person Company.
A Special Resolution in the General Meeting has to be passed to approve such conversion, before passing such resolution, the company shall obtain a No Objection in writing from existing members and creditors.
It is important to note that No objection in writing from existing members and creditors is required shall be collected before passing Special Resolution.
- The company shall not be listed on any recognized stock exchange.
- In case of a listed company, it will have to wait for atleast one year after its delisting.
- DIN (Director Identification Number) for all the Directors.
- DSC (Digital Signature Certificate) for one of the Directors.
Procedure of Conversion a Public Limited Company into a Private Limited Company
- Board Meeting
- Notice of General meeting
- Filing of Special Resolution with RoC
- Publish Newspaper Notice for conversion of the Company
- Application to the Central Government