Private Limited Company Registration with MyCAbuddy
A private limited company is a type of business structure defined under Section 2(68) of the Companies Act 2013. It’s a privately held company where shares are not publicly traded. The Article of Association (AoA) of a Private Company imposes restrictions on the transferability of shares.
Key Features of a Private Limited Company:
- Limited Liability: Each member’s liability is limited to their shares, protecting personal assets.
- Perpetual Existence: Private Companies enjoy perpetual existence, even in cases of member death, bankruptcy, or insolvency.
- Maximum Members: Limited to 200 members, ensuring a controlled environment for operations.
- Shares Transferability: Shareholders can sell their shares in the event of company losses.
- Compliance Requirements: Compliance requirements are less stringent compared to public companies.
Trusted by experts and businesses
Apply now with MyCAbuddy
One Person Company (OPC) Registration
An OPC is defined under Section 2(62) of the Companies Act 2013. It’s a company with only one person as its member.
Advantages of an OPC:
- Easy Decision-Making: Quick decision-making with a single person in charge.
- Reduced Compliance: Less stringent compliance requirements compared to private limited companies.
- Exemptions: Exemptions from Annual General Meetings (AGM) and other legal requirements.
- Ownership Limit: The shareholder should not hold any other OPC or be a member of any other OPC.
- Nominee Requirement: The sole member must nominate someone while registering the OPC.
Conversion of Private Limited Company into OPC
The conversion of a Private Company into an OPC is governed by Section 18 of the Companies Act, 2013 and Rule 7 of the Companies (Incorporation) Rules, 2014.
Conditions for Conversion:
- Paid-up Share Capital: Less than 50 lakh Rupees.
- Annual Turnover: Not exceeding 2 Crores Rupees in the preceding three financial years.
- Shareholder’s Nationality: Must be an Indian citizen.
- Shareholder’s Residential Status: Must be a resident of India.
- Ownership Limit: Should not hold any other OPC or be a member of any other OPC.
- Exclusion of Minors: A minor cannot be a part or member of an OPC.
Benefits with us
Work smarter, save money, and get expert guidance. We’re here to help you succeed.
- Streamlined Registration Process
- Compliance Assurance
- Cost Efficiency
- Employee Welfare
- Expert Guidance
Conversion Procedure:
- Hold Board Meeting: Approve the conversion and fix EGM details.
- Call an Extraordinary General Meeting (EGM): Notify directors, members, and auditors.
- NOC From Creditors: Obtain a No Objection Certificate (NOC) from existing creditors.
- Hold Extraordinary General Meetings (EGM): Pass a special resolution.
- Filing of Relevant Forms to RoC: File Form MGT-14 and Form INC-6 with the Registrar of Companies.
- Issue of Certificate: RoC issues a Share Certificate upon successful conversion.
Post-Conversion Requirements:
- Obtain a New PAN Card.
- Update Stationery.
- Update Bank Account Details.
- Notify Concerned Authorities.
- Print Altered MOA and AOA.
Frequently Asked Questions (FAQs):
Can a foreign national register a Private Limited Company in India?
Yes, a foreign national can register a Private Limited Company in India subject to certain conditions and regulations.
What is the minimum number of directors required for a Private Limited Company?
A minimum of two directors is required for a Private Limited Company in India.
Can an OPC be converted into a Private Limited Company?
Yes, an OPC can be converted into a Private Limited Company after fulfilling certain eligibility criteria and following the prescribed procedure.
Is it mandatory to hold an Annual General Meeting (AGM) for an OPC?
No, OPCs are exempted from holding an AGM as per the Companies Act, 2013
How long does it take to complete the conversion process from a Private Limited Company to an OPC?
The conversion process typically takes around 30-45 days, subject to the timely submission of required documents and approvals from regulatory authorities.