 |
| convert pvt into one person company |
A private limited company can be changed into a one person company under the given circumstances:
The capital of the company is less than Rs. 50 lakhs.
The annual turnover of the company is less than Rs. 2 Cr. for the past three progressive financial years.
Advantages
of converting private limited company into one person company:
The
conversion from private limited to opc has numerous advantages. It makes the
business proceedings less complex and leads to lesser compliance. The reasons
to convert pvt ltd
company into opc in india are:
- The OPC holds a separate legal status and it can have
any number of directors and only one shareholder.
- It has a limited liability for the shareholder
depending upon the number of unpaid shares.
- This is a very organized form of business.
- It has least amount of compliance than any other form
of business. It does not need convening annual general meeting.
- In OPC all the decisive power is in the hand of only
one person which leads to fast decisions.
- There are tax deductions in Income tax and other tax
benefits with OPC.
- It allows direct access to markets without and discussion
or involvement of middlemen.
Hence,
conversion of private limited company to one person company is advisable for
companies falling in the mentioned criteria. It will assist in the business
growth and increased profits.
