Suppose if an existing company has a bank loan then after converting in OPC it should be closed or will it continue?

The liability of the company and its directors continue to exist as before even after conversion.

Conversion of Pvt Ltd to OPC

The Companies Act of 2013, which establishes a method to convert one class of business into another, allows for the conversion of a PLC (Private Limited Company) into an OPC (One Person Company). Starting on April 1, 2014, Section 18 of the Act expressly permits the conversion of an existing registered private limited company.

Overview

A necessity for changing a private limited company into a one-person business may emerge as a result of a co-founder or promoter quitting a private limited company (PLC).

The conversion of a PLC to an OPC has no bearing on the company's duties or contractual commitments before conversion; such claims, liabilities, and obligations will be enforceable by law, and the resultant OPC will be accountable.

Requirements for converting a private corporation into an OPC.

The Company's paid-up share capital must be less than Rs. 50 lakh.
The company's yearly turnover should not have been more than 2 crores rupees over the previous three years.
The new OPC's shareholders should be Indian citizens.
A resident of India should be a shareholder in the new OPC. If a person stays in India for 180 days in a calendar year, he or she is considered a resident.
There should be no other OPCs held by the Shareholder, and he or she should not be a member of any other OPC.

Benefits
Checklist/Requirements
How to Register/Process
Key Deliverables

Benefits of Conversion of Pvt Ltd to OPC

Due to the fact that an OPC can only have one director and one shareholder, an annual general meeting is not possible to be held.
As the director and shareholder of the company is single owner, then he/she can take decisions independently
The shareholder of OPC does not have to share the net profit with anyone else. As he/she is the sole owner he/she can enjoy 100% profit.
Cash Flow Statement is not required to be prepared as a part of their Financial Statement.
Resolution, either Special Resolution or Ordinary Resolution, can be passed simply by member by communicating resolution to company and by entering it into minute book, which shall be signed and dated by sole member.
Financial statement of OPC is required to be signed by one Director only if there is one Director on the Board.

Checklist/Requirements

Board resolution copy
Copy of altered MOA and AOA
Declaration from directors
NOC from creditors
Copy of NOC from shareholders
Audited Financial statements

Process of Conversion of Pvt Ltd to OPC

Step 1: Conduct Board Meeting

Step 2: Conduct an Extra-Ordinary General Meeting

Step 3: File MGT-14

Step 4: File for Conversion

Step 5: Conversion to Private Limited Company

Step 6: Issue of Share Certificate

Key Deliverables

Incorporation certificate
Updated MOA and AOA
Share Certificates

Why Choose Us

Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.

Excise & Customs