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    Conversion of OPC to Private Limited Company

    Posted By : Sachin / Published on : 28-May-2021 10:53 AM / View : 123 / Comment : 0
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    Dear Members,

    We are in the process of converting an OPC to a Private Limited company. The company has presently 3 directors and 1 member.

    Rule 6(2) of Companies (Incorporation) Rules,2014 states that " A One Person company may be converted into a Private or Public Company, other than a company registered under section 8 of the Act, after increasing the minimum number of members and directors to two or seven members and two or three directors, as the case may be, and maintaining the minimum paid-up capital as per the requirements of the Act for such class of company and by making due compliance of section 18 of the Act for conversion. "

    My doubts are:
    since the company has only one member, do we need to appoint one more member first (either by allotment of shares by filing Form PAS 3 OR by transfer of shares) and then proceed for conversion?
    Further, it is stated in the rule regarding the minimum paid-up capital to be maintained by the company as "maintaining the minimum paid-up capital as per the requirements of the Act for such class of company". The requirement of having minimum paid-up capital for private and public companies was removed in the year 2015. Kindly let me know what should be minimum paid-up capital for conversion.
    Please advise.
    Read more on : company limited private conversion



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