Registration Rocket
Conversion of Company
Conversion of Company by Registration Rocket: Seamlessly transition your business structure, whether from Private Limited to LLP, Proprietorship to Partnership, or other forms. We ensure a smooth, compliant, and hassle-free conversion process.
Conversion of Pvt. Ltd. / OPC etc.
Converting a company is like giving your business a makeover. It’s a process where you change the legal structure of your business to suit your current needs. People often do this for benefits like reducing taxes, improving compliance, or enhancing liability protection. This service helps businesses adapt by addressing tax obligations, legal requirements, and risk management.
There are several reasons why a business owner might want to convert their business entity. Some common reasons include:
Taxation: Different business entities are taxed differently in India. For example, Pvt. Ltd. companies are taxed at a flat rate of 25%, while OPCs are taxed at the same rate as the individual shareholder.
Compliance: Various business entities have different compliance requirements. For instance, Pvt. Ltd. companies must file an annual return with the Ministry of Corporate Affairs (MCA), whereas OPCs do not.
Liability Protection: Limited liability companies provide liability protection to their shareholders, meaning shareholders are not personally liable for the company’s debts and liabilities.
The process of converting a business entity from one form to another can be complex and time-consuming. Consulting with a qualified professional ensures the conversion is done correctly.
Step-by-Step Process for Converting a Pvt. Ltd. / OPC etc.:
- Board Approval: Obtain approval from the board of directors for the conversion.
- Application Submission: File a conversion application with the MCA, including documents like the special resolution, a copy of the company’s Memorandum of Association (MOA) and Articles of Association (AOA), and a declaration from the directors that the company is solvent.
- Professional Assistance: Engage legal and financial professionals for guidance.
- Pay Conversion Fees: Pay the applicable conversion fees.
- New Certificate: Once the conversion is approved by the MCA, the company will receive a new Certificate of Incorporation (COI) reflecting the new type of business entity.
Examples of Company Conversions:
Conversion of Private Limited into Public Limited Company: Transforming a Private Limited Company to a Public Limited Company involves shifting from a closely-held structure to one with publicly traded shares, offering increased capital and ownership opportunities.
Conversion of Private Limited into OPC: Changing a Private Limited Company to a One Person Company (OPC) simplifies the business for single ownership, streamlining the structure for more straightforward operations.
Conversion of OPC into Private Limited Company: Transitioning an OPC to a Private Limited Company accommodates multiple shareholders, offering more flexibility and growth opportunities.
Summary
To convert your company, secure board approval, submit a conversion application with necessary documents to the MCA, seek professional guidance, pay conversion fees, and upon MCA approval, receive a new Certificate of Incorporation (COI) reflecting the updated business entity.
Document Required
Company Conversion (OPC to Pvt Ltd and vice-versa)
COMPANY CONVERSION (OPC TO PVT LTD AND VICE-VERSA)
Frequently Asked Questions
Find answers to common questions about our services.
Why should I consider converting my business entity?
Converting your business entity can offer benefits such as reduced taxation, improved compliance with legal requirements, and enhanced liability protection for shareholders.
What is the first step in converting my company?
The first step is obtaining board approval for the conversion. This involves passing a special resolution by the board of directors.
What documents are required for the conversion application?
The application must include the special resolution, a copy of the company's Memorandum of Association (MOA) and Articles of Association (AOA), and a declaration from the directors that the company is solvent.
Do I need professional assistance for the conversion process?
Yes, it is advisable to engage legal and financial professionals to ensure the conversion process is handled correctly and complies with all regulations.
What are the applicable conversion fees?
The conversion fees vary depending on the type of conversion and the regulatory requirements. It is essential to consult with a professional to understand the specific fees involved.
How long does the conversion process take?
The duration of the conversion process can vary based on the complexity of the conversion and the efficiency of document processing by the Ministry of Corporate Affairs (MCA).
What happens after the conversion is approved by the MCA?
Once the conversion is approved, the company will be issued a new Certificate of Incorporation (COI) that reflects the new type of business entity.
What are some common types of company conversions?
Common types of conversions include transforming a Private Limited Company into a Public Limited Company, converting a Private Limited Company into a One Person Company (OPC), and transitioning an OPC into a Private Limited Company.
