Converting a Private Limited Company to a One Person Company (OPC) offers several benefits, including simplified compliance and administration, as the OPC structure has fewer regulatory requirements. It also provides full control to the sole owner while retaining the advantages of limited liability. This conversion reduces operational costs and allows for easier decision-making processes, making it ideal for small businesses or solo entrepreneurs. Additionally, OPCs have lower audit requirements and can still enjoy the credibility and legal protection of a corporate entity.

Converting a Private Limited Company to a One Person Company (OPC) involves several steps

• Eligibility Check : Ensure the company meets the criteria for conversion, such as having a paid-up capital of less than ₹50 lakhs and an annual turnover below ₹2 crores.
• Board Meeting Resolution : Hold a board meeting to pass a resolution approving the conversion. The board should also authorise a director to take necessary actions for the conversion.
• Shareholder Approval : Obtain approval from shareholders through a special resolution in an Extraordinary General Meeting (EGM). The resolution must be filed with the Registrar of Companies (ROC) using Form MGT-14 within 30 days.
• Filing Conversion Application: : Submit the application for conversion to the ROC using Form INC-6, along with the required documents, including the board resolution, shareholder resolution, latest financial statements, and a declaration by the director.
• Issuance of New Certificate of Incorporation : Upon verification and approval, the ROC will issue a new Certificate of Incorporation, confirming the conversion to an OPC.
• Update Legal and Financial Records : Update all legal, financial, and operational records to reflect the new OPC structure, including altering the company's Memorandum of Association (MOA) and Articles of Association (AOA) to meet OPC requirements.

This process helps streamline business operations, especially for solo entrepreneurs, by consolidating ownership and simplifying compliance.

Support from SS Auditors and Tax professionals is crucial during the conversion of a Private Limited Company to a One Person Company (OPC). Their assistance includes

• Financial Statement Preparation: SS Auditors can prepare and audit the company's financial statements, ensuring they are accurate and up to date, which is necessary for the conversion process.
• Compliance Verification: Tax professionals can verify that the company meets all regulatory compliance requirements, including turnover and capital criteria, before applying for conversion.
• Document Preparation and Filing: We assist in drafting and filing essential documents, such as board resolutions, the updated Memorandum of Association (MOA) and Articles of Association (AOA), and the application form (INC-6) with the Registrar of Companies (ROC).
• Tax Filings and Clearances : Tax experts from SS AUDITORS ensure that all outstanding tax returns are filed and necessary clearances are obtained from the tax authorities, which is a critical step before conversion.
• Legal Compliance: SS Auditors and tax professionals ensure that the conversion process adheres to the Companies Act, 2013, and other relevant laws, preventing legal complications.
• Advisory Support: We provide strategic advice on the financial and tax implications of the conversion, helping to minimise liabilities and maximise benefits.

By leveraging the expertise of SS Auditors and Tax professionals, the conversion process becomes smoother, more efficient, and legally sound.