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Proprietorship to OPC conversion

A one-person company is a more advanced and superior version of a sole proprietorship. For medium-sized firms, one-person companies are an excellent company form. Converting a sole proprietorship to a One Person Company is a solid business move because it is an improved and better form of proprietorship concern. This corporate form allows the company's sole promoter complete control while also minimizing his responsibilities to protect his personal assets of director. This company's owner is a shareholder. Like a Private Company, OPC may select a separate individual as a director to oversee its management.

The Procedure for Converting a Proprietorship to a One-Person Corporation.

Step 1.

Digital Signature Certificates (DSC) Application- The first step is to apply for and obtain Digital Signature Certificates for all directors.

Step 2.

Registration of a Name - The next step is to confirm the availability of the name and reserve it under RUN.

Step 3.

MOA and AOA Drafting — The next step is to prepare all of the documents by drafting the MOA and AOA and other papers and having them notarized.

Step 4.

OPC Registration Application - After gathering all necessary documents, we must apply for company registration.

Step 5.

DIN, PAN, and TAN applications — Following the incorporation of the OPC, applications for the allotment of the OPC's DIN, PAN, and TAN must be filed.

Documents Required 

• A copy of the partnership deed .

• A certified copy of the financial statement.

• A copy of the firm's ITR

• Passport Size Photograph.

• PAN Card.

• ID Proof (anyone).

• Aadhar Card/Voter ID /Driving License /Passport.

• Address Proof .

• Bank Statement/Electricity Bill /Telephone Bill / Mobile Bill.

Documents for Registered Office Address

• If Property Owned by Directors /Shareholder

• Sale Deed of Property

• NOC from the Owner (format given by our company)

If you've rented a property, you'll need a letter of authorization from the owner (format given by our company)

• Rent Agreement

• NOC from the Owner (format given by our company)

• Companies (ROC)

OPC Advantages over a Sole Proprietorship

Separate Legal Entity hence limited liability

The protection of the personal assets of director ensures that the owner's liability is restricted to their part of the company.

It opens up new business opportunities

Large corporations prefer to work with OPC over sole proprietorships. OPC is registered as a private company, and OPC are the most trusted type of business, making it easier for them to obtain capital from banks. It creates trust in the company among suppliers and customers.

A structure that is simple to manage

OPC has a manageable structure because there is only one member. An annual or additional ordinary general meeting is not required—no need to seek permission from anyone because only one person has the authority to make decisions.

Well-organized structure

The system of a sole proprietorship is not well-organized as compare to OPC. So, the decision related to conversion of Proprietorship concern into OPC is recommended.

FAQ's

A nominee is a person who will take his place in the event of the subscriber of the One Person Company's death or disability. The name of the person must be specified in the Memorandum of Association of a One-Person Company.

Only a natural person who is an Indian citizen and resides in India can serve on an OPC as a member and nominee.

A person can only be a member of one OPC.

The following are the primary drawbacks of operating as a sole proprietorship: Liability is limitless: Because a small business is a sole proprietorship, you are individually liable for all of the company's debts and acts. Your business structure, unlike a corporation is not a separate legal entity.