Conversion of OPC into private or public company.
ashish (Student CS) (75 Points)
20 July 2017
what's criteria of conversation of OPC into Private or Public company ?
10 Replies
Pooja Mehta
(48 Points)
Replied 21 July 2017
When a One Person Company gets incorporated, it cannot convert itself to Private or Public company for a period of not less than two years from the date of incorporation.
Ø If the time period has elapsed and two years time period is over, a One Person Company can apply for converting itself to Private Limited Company or Public limited company.
Ø The Conversion process should be done as per the rules and regulations laid down by the Companies Act, 2013 under Section 18, and Rule 7(4) of the Companies (Incorporation) Rules, 2014.
Ø If the time period has elapsed and two years time period is over, a One Person Company can apply for converting itself to Private Limited Company or Public limited company.
Ø The Conversion process should be done as per the rules and regulations laid down by the Companies Act, 2013 under Section 18, and Rule 7(4) of the Companies (Incorporation) Rules, 2014.
Pooja Mehta
(48 Points)
Replied 21 July 2017
Accordingly the company will have to pass the board resolution and special resolution and file form INC 6 with the ROC within 30 days of passing the resolution
ashish
(Student CS)
(75 Points)
Replied 22 July 2017
But as I know there are some compulsorily conversion of OPC into public or private company in the following circumstances:
# Where the paid up capital exceeds Rs. 50 lakhs.
or
# Where the average annual turnover for the past 3 financial years exceeds Rs. 2 crores.
# Where the balance sheet total exceeds Rs. 1 crore.
within 30 days, the OPC shall give notice of its conversion to the ROC..
# Where the paid up capital exceeds Rs. 50 lakhs.
or
# Where the average annual turnover for the past 3 financial years exceeds Rs. 2 crores.
# Where the balance sheet total exceeds Rs. 1 crore.
within 30 days, the OPC shall give notice of its conversion to the ROC..
ashish
(Student CS)
(75 Points)
Replied 22 July 2017
But as I know there are some compulsorily conversion of OPC into public or private company in the following circumstances:
# Where the paid up capital exceeds Rs. 50 lakhs.
or
# Where the average annual turnover for the past 3 financial years exceeds Rs. 2 crores.
# Where the balance sheet total exceeds Rs. 1 crore.
within 30 days, the OPC shall give notice of its conversion to the ROC..
# Where the paid up capital exceeds Rs. 50 lakhs.
or
# Where the average annual turnover for the past 3 financial years exceeds Rs. 2 crores.
# Where the balance sheet total exceeds Rs. 1 crore.
within 30 days, the OPC shall give notice of its conversion to the ROC..
ashish
(Student CS)
(75 Points)
Replied 22 July 2017
Pooja, could you please give your comment on this ????
Pooja Mehta
(48 Points)
Replied 23 July 2017
There are 2 types of converSion
1.Compulsory conversion
2.voluntary conversion
I gave the procedure for voluntary conversion and you are talking about compulsory conversion.. we both are correct
1.Compulsory conversion
2.voluntary conversion
I gave the procedure for voluntary conversion and you are talking about compulsory conversion.. we both are correct
Pooja Mehta
(48 Points)
Replied 23 July 2017
When an OPC has paid up share capital that exceeds Rs.50 lakhs and the annual turnover is above Rs.2 crores, then it is obligatory for them to convert into a private limited company.
Company need to first initimate the same to the ROC under form InC 5 within 60 days of the occurrences
within 6 months company needs compulsorily convert the OPC into private company
During the conversion, the members have to just pass a special resolution in the general meeting.
Before the resolution is passed, a No objection Certificate has to be taken in writing from the creditors, and the other members.
Within fifteen days of the passing of the resolution, company needs to file an application to the registrar along with a copy of the resolution.
Application to be in made in form INC 6
Company need to first initimate the same to the ROC under form InC 5 within 60 days of the occurrences
within 6 months company needs compulsorily convert the OPC into private company
During the conversion, the members have to just pass a special resolution in the general meeting.
Before the resolution is passed, a No objection Certificate has to be taken in writing from the creditors, and the other members.
Within fifteen days of the passing of the resolution, company needs to file an application to the registrar along with a copy of the resolution.
Application to be in made in form INC 6
ashish
(Student CS)
(75 Points)
Replied 25 July 2017
An advertisement in the newspaper stating some shares are still available for sale.
is this called prospectus ???
is this called prospectus ???
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