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Ready to Convert Your Pvt Ltd to OPC?
Simplify your company structure with single-member OPC conversion. Expert CA/CS files Form INC-6 from ₹5,999. Completed in 15 to 30 working days.
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Fill the Form
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02
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End-to-end professional assistance with Pvt Ltd to OPC conversion under Section 18 of the Companies Act, 2013.
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Pvt Ltd to OPC Conversion Package 2026
From ₹5,999 one-time professional fee
Complete within 7 days
7-day turnaround 100% guaranteed
Eligibility Verification Under Rule 7(4)
Share Consolidation Assistance
Board and Special Resolution Drafting
Form MGT-14 Filing with RoC
MOA and AOA Alteration for OPC
Nominee Appointment (Form INC-3)
Form INC-6 Filing with CA/CS Certification
New Certificate of Incorporation
GST Amendment Guidance
Post-Conversion Compliance Setup
*Government fees are additional and vary based on company structure
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Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
Private Limited to OPC conversion is the legal process under Section 18 of the Companies Act, 2013, of transforming a multi-member Private Limited Company into a single-member One Person Company by filing Form INC-6 with the Registrar of Companies. It is governed by Rule 7(4) of the Companies (Incorporation) Rules, 2014. A One Person Company (OPC) is a company structure that allows a single natural person who is an Indian citizen and resident to hold 100% ownership with limited liability protection and a mandatory nominee.
Solo founders who started with a co-founder but now operate alone frequently choose this conversion. Common triggers include a co-founder exit, a decision to reduce compliance overhead, or a strategic shift toward single-member control. The conversion moves from a multi-member structure to a single-member structure while preserving the company's CIN, PAN, TAN, GST registration, bank accounts, contracts, and licences. Browse all business conversion services we offer, or learn about One Person Company registration for new incorporations. Already have a Private Limited Company registration and want to understand the differences before converting? Read on.
Eligibility Criteria for Pvt Ltd to OPC Conversion
Not every Private Limited Company qualifies for OPC conversion. Rule 7(4) of the Companies (Incorporation) Rules, 2014 sets strict thresholds. Your company must satisfy all the following conditions before filing Form INC-6.
Criterion
Requirement
Legal Reference
Paid-up Share Capital
Must not exceed ₹50 lakhs
Rule 7(4)
Average Annual Turnover
Must not exceed ₹2 crores (preceding 3 FYs)
Rule 7(4)
Sole Member
Must be a natural person (not body corporate)
Section 2(62)
Citizenship
Must be an Indian citizen
Rule 7(4)
Residency
Must have stayed in India for 120+ days in preceding FY
Rule 7(4)
Multiple OPC Restriction
Cannot be a member of another OPC
Section 2(62) Proviso
Secured Creditors
Must obtain NOC if secured debt exists
Rule 7(4)(ii)
Budget 2021 removed capital and turnover limits for new OPC registration. However, Rule 7(4) thresholds still apply for conversion from Pvt Ltd to OPC. The ₹50 lakhs capital and ₹2 crores turnover limits remain in force for this conversion route. Do not confuse the two provisions.
Our CA/CS team verifies your company's eligibility under Rule 7(4) before you spend a single rupee.
Benefits of Converting Pvt Ltd to OPC
Converting from a Private Limited to OPC structure delivers concrete operational savings and compliance relief. Here are 7 specific benefits, each backed by statutory provisions.
Single-Member Control
Full ownership and decision-making authority. No board meetings needed for shareholder approvals. Solo founder retains 100% control and can pass resolutions as written statements under Section 122.
Simplified Compliance
No AGM required. Only 2 board meetings per year (vs 4 for Pvt Ltd). OPCs with turnover below ₹2 crores are exempt from cash flow statement preparation. OPC annual compliance costs significantly less.
Reduced Operating Costs
Save ₹15,000 to ₹25,000 per year on compliance. Statutory audit costs are lower, and fewer filings reduce professional fees. Annual compliance runs ₹10,000 to ₹20,000 vs ₹25,000 to ₹40,000 for Pvt Ltd.
Limited Liability Protection
Personal assets remain protected from business debts. OPC is a separate legal entity with perpetual succession. Liability is limited to the member's share capital contribution only.
Legal Continuity
Company retains its CIN, PAN, TAN, bank accounts, GST registration, contracts, and licences. No disruption to ongoing business, vendor relationships, or government registrations.
Faster Decision-Making
No need for shareholder meetings or multi-director consensus. Single member can pass resolutions as written statements under Section 122, saving time on corporate governance procedures.
Reversible Conversion
Can convert back to Pvt Ltd later via Form INC-6 if business grows beyond OPC thresholds (₹50 lakhs capital or ₹2 crores turnover). The reverse process follows the same Section 18 framework.
Private Limited vs OPC: Key Differences
Understanding how OPC differs from Private Limited Company helps you decide whether conversion suits your business. Here is a side-by-side comparison across 12 parameters.
Parameter
Private Limited Company
One Person Company (OPC)
Minimum Members
2
1
Maximum Members
200
1
Minimum Directors
2
1 (+ nominee)
Nominee Requirement
Not required
Mandatory (Form INC-3)
AGM Requirement
Mandatory
Exempt
Board Meetings
Minimum 4 per year
Minimum 2 per year
Cash Flow Statement
Mandatory
Exempt (if turnover below ₹2 crores)
External Equity
Can raise from investors
Cannot raise equity from outside
NBFC Activities
Permitted
Not permitted
Paid-up Capital Limit
No cap
₹50 lakhs (for conversion eligibility)
Turnover Limit
No cap
₹2 crores average (for conversion eligibility)
Annual Compliance Cost
₹25,000 to ₹40,000
₹10,000 to ₹20,000
When NOT to convert: If you plan to raise equity investment, add co-founders, or expect turnover to cross ₹2 crores within 2 years, stay with Pvt Ltd. Mandatory reverse conversion from OPC back to Pvt Ltd is triggered when these thresholds are breached, and the back-and-forth costs time and money.
Documents Required for Pvt Ltd to OPC Conversion
Prepare these documents before initiating the conversion process. All uploads must be colour PDF scans. Missing documents are the second most common reason for Form INC-6 rejection.
For the Sole Member
PAN CardSelf-attested colour scan of the sole member
Aadhaar CardFor identity verification and OTP authentication
Passport-Size PhotographRecent colour photo of the sole member
Nominee Consent (Form INC-3)Written consent with PAN, Aadhaar, address proof, and photograph
Company Documents
Board ResolutionResolution approving the conversion proposal
Special Resolution (75% Majority)Authorizing conversion under Section 18
Audited Financial Statements (3 Years)Proving turnover and capital eligibility under Rule 7(4)
Existing and Altered MOA/AOADraft amended MOA and AOA reflecting OPC structure
Share Transfer Deeds or Buyback ResolutionTo consolidate shares to a single member
NOC from Secured CreditorsRequired if the company has any secured debt
CA/CS CertificateVerifying eligibility under Rule 7(4)
Pro Tip: Speed Up Your Filing
Get the DSC issued in advance (takes 1 to 2 days, costs ₹1,500 to ₹2,000). Having audited financial statements ready for 3 years speeds up CA/CS certification. Digital copies of all documents should be ready before you initiate the conversion process.
Step-by-Step Pvt Ltd to OPC Conversion Process
The complete Pvt Ltd to OPC conversion involves 8 steps, takes 15 to 30 working days from Form INC-6 filing, and costs ₹8,000 to ₹15,000 (IncorpX professional fee ₹5,999 + government fees ₹2,500 to ₹6,000). All filings are processed through the MCA V3 portal.
Step 1: Verify Eligibility Under Rule 7(4)
Confirm the company has paid-up capital up to ₹50 lakhs and average annual turnover up to ₹2 crores for the preceding 3 financial years. The sole intended member must be an Indian citizen and resident in India for at least 120 days in the preceding financial year. A practicing CA or CS reviews the company's financials and confirms eligibility.
Time: 1 to 2 days
Step 2: Consolidate Shares to Single Member
Buy out or transfer shares from all other shareholders so that only one natural person holds 100% shareholding. This involves executing share transfer filing deeds (stamp duty 0.25% of share value) or a share buyback process. Capital gains tax applies to exiting shareholders on their share transfers.
Time: 5 to 10 days
Step 3: Pass Board and Special Resolutions
Hold a board meeting to approve the conversion proposal. Then pass a special resolution (75% majority) at a general meeting authorizing conversion from Pvt Ltd to OPC under Section 18 of the Companies Act, 2013. Both resolutions must be properly documented and signed.
Time: 1 to 3 days
Step 4: File Form MGT-14 with RoC
File Form MGT-14 with the Registrar of Companies within 30 days of passing the special resolution. Attach the certified copy of the resolution. Government fee ranges from ₹200 to ₹600 based on authorized capital.
Portal: mca.gov.in | Fee: ₹200 to ₹600 | Time: 1 to 2 days
Step 5: Alter MOA and AOA
Amend the Memorandum of Association and Articles of Association to reflect the OPC structure. Replace references to multiple members/shareholders with single-member provisions. Include nominee clauses and OPC governance rules. Stamp duty for alteration varies by state (₹100 to ₹5,000).
Time: 2 to 3 days
Step 6: Appoint Nominee Director via Form INC-3
Every OPC must appoint a nominee who becomes the member in case of death or incapacity of the sole member. File Form INC-3 (Nominee Consent) with the nominee's PAN, Aadhaar, address proof, photograph, and written consent. The nominee has no active role in daily operations.
Time: 1 day
Step 7: File Form INC-6 with RoC
File Form INC-6 (Application for Conversion) with the Registrar of Companies. Attach altered MOA/AOA, special resolution, CA/CS certificate verifying Rule 7(4) eligibility, NOC from creditors (if applicable), and financial statements for 3 years. A practicing CA or CS must certify Form INC-6. Government fee ranges from ₹2,000 to ₹5,000 based on authorized capital.
Portal: mca.gov.in | Fee: ₹2,000 to ₹5,000 | Time: 1 to 2 days
Step 8: Obtain New Certificate of Incorporation
The RoC reviews the application and issues a new Certificate of Incorporation reflecting the OPC status. The company retains its existing CIN with the suffix updated to indicate One Person Company. PAN and TAN remain unchanged. Update the company name on letterheads, invoices, bank accounts, and all government registrations.
Time: 15 to 30 working days from filing
Common Mistake: Filing Form INC-6 before consolidating all shares to a single member is the most common rejection reason. Complete the share transfer or buyback and file Form MGT-14 first. RoC will return the application if shareholding is not 100% with one person at the time of filing.
100+ conversions completed. Expert CA/CS team. 15 to 30 day turnaround.
Pvt Ltd to OPC Conversion Cost in 2026
Every cost component is listed below, split between government fees (paid to MCA and state authorities) and professional fees (paid to IncorpX). Total conversion cost ranges from ₹8,000 to ₹15,000 depending on your company's authorized capital, state of registration, and share transfer method.
Component
Amount (₹)
Notes
IncorpX Professional Fee
5,999 (starting)
Includes document prep, filing, CA/CS certification
Form INC-6 Government Fee
2,000 to 5,000
Based on authorized capital
Form MGT-14 Government Fee
200 to 600
Based on authorized capital
MOA/AOA Alteration Stamp Duty
100 to 5,000
State-dependent (see table below)
DSC (if new required)
1,500 to 2,000
Per person, Class 3
Share Transfer Stamp Duty
0.25% of share value
Only if share transfer route used
Total Estimated
₹8,000 to ₹15,000
Depending on capital, state, share transfer
State-Wise Stamp Duty for MOA/AOA Alteration
Stamp duty for altering MOA and AOA varies by state. Below are the rates for 5 major states.
State
Stamp Duty (₹)
Maharashtra
1,000 to 5,000
Delhi
500 to 2,000
Karnataka
500 to 3,000
Tamil Nadu
300 to 2,000
Telangana
500 to 3,000
IncorpX charges ₹5,999 flat professional fee. Government fees are billed at actuals. No hidden charges. Stamp duty varies by state and is disclosed in your state-specific quote before payment. Compare: Ebizfiling charges ₹14,999 for similar services.
Free state-specific cost estimate. ₹5,999 flat professional fee. Government fees at actuals.
Tax Implications of Pvt Ltd to OPC Conversion
The conversion itself does not create a tax event for the company, since the legal entity continues with the same PAN. However, the share consolidation process creates taxable events for exiting shareholders. Understanding these tax implications upfront helps you choose the right share exit route.
Share Transfer Route
When exiting shareholders transfer their shares to the continuing member, they face capital gains tax. Short-term capital gains (shares held for less than 24 months) are taxed at the shareholder's income slab rate, which ranges from 5% to 30%. Long-term capital gains (shares held for 24 months or more) attract 20% tax with the benefit of indexation under the Income Tax Act. Stamp duty on share transfer is 0.25% of the share consideration under the Indian Stamp Act and applies uniformly across India.
Share Buyback Route
If the company buys back shares from the exiting shareholders instead of a direct transfer, the company pays 20% buyback tax under Section 115QA of the Income Tax Act. The shareholders receive their proceeds tax-free. This route transfers the tax burden from individuals to the company. Factor this amount into your conversion cost planning.
Share buyback tax under Section 115QA is payable by the company, not the shareholders. If the buyback amount is ₹5 lakhs, the company pays ₹1 lakh as buyback tax (20%). Factor this into your total conversion cost calculation.
Post-Conversion Tax Position
After conversion, GST registration, TDS obligations, advance tax schedules, and all Income Tax filings continue unchanged. The company files ITR-6 as before. The corporate tax rate (22% under Section 115BAA or 25% default) remains the same for OPC as for Pvt Ltd. File Form GST REG-14 within 15 days of receiving the new Certificate of Incorporation to update the company type on the GST portal.
Tax Planning Tip: Consult a tax advisor to choose between share transfer and buyback based on the exiting shareholders' tax bracket. If the exiting shareholder is in the 30% slab and has short-term gains, buyback (20% company tax) is often more tax-efficient.
Restrictions After Converting to OPC
OPC brings compliance simplicity, but it also carries specific restrictions that do not apply to a Private Limited Company. Understand these limitations before you convert.
No NBFC or Investment Activities: An OPC cannot carry on Non-Banking Financial Institution or investment company activities under the Companies Act.
Single Member Limit: A person cannot be a member of more than 1 OPC simultaneously. If you already own an OPC, you cannot convert another Pvt Ltd to OPC.
No Body Corporate as Member: Only a natural person (individual) can be the sole member. Corporate entities, LLPs, or trusts cannot hold OPC membership.
No External Equity: OPC cannot raise equity from external investors, issue shares to the public, or admit new members without first converting back to Pvt Ltd.
No Section 8 Conversion: An OPC cannot convert to a Section 8 (non-profit) company.
Mandatory Reverse Conversion: If paid-up capital exceeds ₹50 lakhs or turnover exceeds ₹2 crores in any financial year, you must convert OPC back to Private Limited within 6 months.
If your OPC's turnover crosses ₹2 crores or capital crosses ₹50 lakhs in any financial year, you must convert back to Pvt Ltd within 6 months. Non-compliance attracts penalty under Section 450 (₹10,000). IncorpX offers the OPC to Pvt Ltd conversion service from ₹5,999.
Post-Conversion Compliance: OPC vs Pvt Ltd
After conversion, your compliance obligations change. OPC enjoys specific exemptions that translate to lower costs and fewer filings. Here is a side-by-side comparison. For detailed requirements, read about OPC annual compliance requirements and Pvt Ltd compliance requirements.
Compliance
OPC
Pvt Ltd
Savings
AGM
Exempt
Mandatory (within 6 months of FY end)
Yes
Board Meetings
2 per year (1 per half-year)
4 per year (1 per quarter)
Yes
Cash Flow Statement
Exempt (turnover below ₹2 crores)
Mandatory
Yes
Statutory Audit
Mandatory
Mandatory
No
AOC-4 Filing
Within 180 days of FY end
Within 30 days of AGM
Extended deadline
Annual Return
MGT-7A (simplified)
MGT-7 (detailed)
Yes
Income Tax Return
ITR-6 (mandatory)
ITR-6 (mandatory)
No
DIR-3 KYC
Annually by 30 September
Annually by 30 September
No
Bottom line: OPC saves ₹15,000 to ₹25,000 per year in compliance costs due to fewer meetings, simplified returns, and reduced professional fees.
OPC must file Form AOC-4 within 180 days from the close of the financial year (vs 30 days from AGM for Pvt Ltd). Missing this extended deadline still attracts ₹100 per day penalty under Section 137(3) of the Companies Act, with no maximum cap.
Nominee Appointment for OPC
Appointing a nominee is mandatory for every OPC under the Companies Act, 2013. The nominee serves as a safety net: this person automatically becomes the sole member if the original member dies or becomes incapacitated. The nominee has no active role in daily company operations.
Aspect
Details
Who Can Be Nominee
Any Indian citizen who is a resident of India
Filing Requirement
Form INC-3 (Nominee Consent) with PAN, Aadhaar, address proof
Role in Operations
No active role unless sole member dies or is incapacitated
Change of Nominee
File Form INC-4 with RoC (no government fee)
Multiple OPC Restriction
Cannot be nominee in more than 1 OPC
Liability
No liability unless nominee becomes the member/director
Practical Advice: Choose a trusted family member as nominee. The nominee need not be a shareholder or director, and has zero involvement in day-to-day operations. They step in only if the sole member can no longer serve. Keep the nominee informed about the company's basic affairs for a smooth transition if needed.
Advantages of Pvt Ltd to OPC Conversion
₹15,000 to ₹25,000 Annual Savings
Reduced compliance, fewer board meetings, simplified annual return (MGT-7A instead of MGT-7), and lower professional fees.
Full Operational Control
Single member makes all decisions without shareholder meetings. Resolutions can be passed as written statements under Section 122.
Legal Continuity
Company retains its CIN, PAN, TAN, bank accounts, GST registration, contracts, and licences. No business disruption.
Limited Liability Preserved
Personal assets remain protected. OPC is a separate legal entity with perpetual succession.
AGM Exemption
No need to hold Annual General Meetings. Only 2 board meetings per year (one per half-year).
Reversible
Can convert back to Pvt Ltd under Section 18 if business grows beyond OPC thresholds. The conversion framework works both ways.
Disadvantages of Converting to OPC
No External Investment
OPC cannot raise equity from VCs, angel investors, or new shareholders. Growth funding is limited to debt instruments only.
Mandatory Reverse Conversion
If turnover crosses ₹2 crores or capital crosses ₹50 lakhs, mandatory conversion back to Pvt Ltd within 6 months. Non-compliance attracts ₹10,000 penalty.
NBFC Restriction
OPC cannot carry on NBFC or investment company activities. Financial services businesses should retain Pvt Ltd structure.
Single Point of Failure
Business depends on one member. While the nominee provides succession cover, the transition period can disrupt operations.
Conversion Cost
Total cost of ₹8,000 to ₹15,000 including professional and government fees. Add capital gains tax on share transfers for exiting shareholders.
Common Mistakes to Avoid During Pvt Ltd to OPC Conversion
Based on our experience handling 100+ Pvt Ltd to OPC conversions, these are the 5 most frequent mistakes that cause rejections, delays, or unexpected costs. Each mistake listed below has been observed in real client filings handled by our CA/CS team.
Mistake #1: Filing Form INC-6 before share consolidation
The RoC rejects Form INC-6 if shareholding is not 100% with a single member at the time of filing. Complete all share transfers or buybacks and file Form MGT-14 before submitting Form INC-6. This mistake caused 35% of rejections in our client base.
Mistake #2: Confusing new OPC registration limits with conversion limits
Budget 2021 removed capital and turnover limits for fresh OPC registration. However, Rule 7(4) thresholds (₹50 lakhs capital, ₹2 crores turnover) still apply for Pvt Ltd to OPC conversion. 1 in 5 clients approach us after misunderstanding this distinction.
Mistake #3: Not appointing a nominee before filing
OPC requires a mandatory nominee under Form INC-3. Filing Form INC-6 without attaching nominee consent results in automatic rejection. Ensure the nominee's PAN, Aadhaar, and written consent are ready before you file.
Mistake #4: Missing the Form MGT-14 filing deadline
The special resolution authorising conversion must be filed via Form MGT-14 within 30 days of passing. Late filing attracts ₹200 per day additional fee under Section 403 of the Companies Act, 2013. Do not delay this step.
Mistake #5: Ignoring post-conversion name updates
After receiving the new Certificate of Incorporation, you must update the company name (e.g., "ABC (OPC) Private Limited") on all letterheads, invoices, bank accounts, GST portal, and PAN records within 30 days. Delayed updates cause compliance notices.
IncorpX Prevention: Our 8-step checklist catches each of these mistakes before filing. Every Form INC-6 application goes through dual review by a CA and CS before submission, which is why our first-attempt approval rate stands at 98%.
Regulatory Updates for Pvt Ltd to OPC Conversion (2026)
The regulatory framework for Pvt Ltd to OPC conversion has undergone several changes since the Companies Act, 2013 was enacted. Here are the latest amendments affecting this conversion route, current as of May 2026.
Update
Effective Date
Impact on Conversion
Budget 2021: OPC Limits Relaxed for New Registration
1 April 2021
Capital and turnover limits removed for new OPC registration, but Rule 7(4) limits (₹50 lakhs / ₹2 crores) remain for Pvt Ltd to OPC conversion.
MCA V3 Portal Launch
2023
All Form INC-6, MGT-14, and INC-3 filings now processed through the V3 portal. Older V2 portal forms are no longer accepted.
Residency Requirement Reduced to 120 Days
1 April 2021
OPC sole member residency requirement reduced from 182 days to 120 days in the preceding financial year, making more Indian citizens eligible.
Companies (Incorporation) Third Amendment Rules, 2023
2023
Updated Form INC-6 with additional disclosure requirements. CA/CS certification format revised. All pending applications transitioned to new format.
IncorpX monitors MCA notifications weekly. All conversion packages use the latest form versions and comply with the most recent amendments. Check MCA Acts & Rules for official notifications.
Annual compliance management for Private Limited Companies: AGM, AOC-4, MGT-7, DIR-3 KYC, and statutory audit.
Frequently Asked Questions About Pvt Ltd to OPC Conversion
Below are 38 questions sourced from real search queries, MCA guidelines, and our experience completing 100+ Pvt Ltd to OPC conversions. Each answer includes specific data points, relevant Act sections, and ₹ amounts.
Private Limited to OPC conversion is the legal process of changing a multi-member Private Limited Company into a single-member One Person Company under Section 18 of the Companies Act, 2013. The company retains its CIN and legal continuity. It requires filing Form INC-6 with the Registrar of Companies after consolidating shares to one member.
Section 18 governs the conversion of companies already registered under the Act from one class to another. For Pvt Ltd to OPC conversion, it requires an application to the Registrar of Companies with altered MOA/AOA and prescribed documents. The conversion takes effect upon issuance of a new Certificate of Incorporation by the RoC.
Form INC-6 is the MCA-prescribed application form for converting a Private Limited or Limited Company into a One Person Company. It must be filed with the Registrar of Companies along with altered MOA/AOA, special resolution, CA/CS certificate, and creditor NOC. The government filing fee ranges from ₹2,000 to ₹5,000.
A nominee in an OPC is a person designated under Form INC-3 who automatically becomes the sole member if the original member dies or becomes incapacitated. Appointing a nominee is mandatory for every OPC under the Companies Act, 2013. The nominee can be changed later by filing Form INC-4 with the RoC.
Rule 7(4) of the Companies (Incorporation) Rules, 2014 prescribes eligibility thresholds for converting a Pvt Ltd to OPC. The company must have paid-up capital up to ₹50 lakhs and average annual turnover up to ₹2 crores for the preceding 3 financial years. Only an Indian citizen resident qualifies as the sole member.
No. Under the Companies Act, 2013, a natural person cannot be a member in more than one OPC at any given time. Similarly, a person cannot be a nominee in more than one OPC. If you already hold membership in an existing OPC, you must relinquish it before converting another Pvt Ltd to OPC.
The company's PAN and TAN remain unchanged after conversion from Pvt Ltd to OPC. The company retains its legal identity and CIN (with updated suffix). However, you must update the company type with the Income Tax Department, banks, and GST registration to reflect the OPC status.
Yes, statutory audit remains mandatory for OPC. However, OPCs with turnover below ₹2 crores and paid-up capital below ₹50 lakhs are exempt from preparing a cash flow statement. The auditor appointment and annual audit cycle continue as with any company. Filing Form AOC-4 with audited financials is still required.
No. Only a natural person who is an Indian citizen AND resident in India (minimum 120 days in the preceding financial year) can be the sole member of an OPC. NRIs and foreign nationals cannot hold OPC membership. If you are an NRI, consider retaining the Private Limited structure instead.
Employees remain unaffected by the conversion. All existing employment contracts, provident fund registrations, ESI accounts, and payroll obligations continue without interruption. The company retains its legal identity and all employment relationships transfer automatically. No separate notice or consent from employees is required under the Companies Act.
Yes. An OPC retains limited liability protection identical to a Private Limited Company. The sole member's personal assets remain protected from business debts. The OPC is a separate legal entity with perpetual succession, meaning liability is limited to the member's share capital contribution only.
Yes, the GST registration remains valid after Pvt Ltd to OPC conversion since the PAN does not change. However, you must file an amendment application on the GST portal to update the company type from Private Limited to OPC. File Form GST REG-14 within 15 days of receiving the new Certificate of Incorporation.
An OPC cannot carry on Non-Banking Financial Institution (NBFC) or investment activities under the Companies Act. It cannot have a body corporate as a member. A person cannot be a member in more than 1 OPC. OPC also cannot raise equity from external investors or issue shares to the public.
The conversion involves 8 steps: verify eligibility under Rule 7(4), consolidate shares to a single member, pass board and special resolutions, file Form MGT-14, alter the MOA/AOA, appoint a nominee via Form INC-3, file Form INC-6 with the RoC, and obtain a new Certificate of Incorporation. Total time: 15 to 30 working days.
Key documents include: board resolution approving conversion, special resolution (75% majority), altered MOA and AOA, share transfer deeds or buyback documents, nominee consent (Form INC-3), audited financial statements for 3 years, NOC from creditors, practicing CA/CS certificate, and DSC of the sole member.
The complete conversion takes 15 to 30 working days from the date of filing Form INC-6 with the RoC. Share consolidation and resolution passing require an additional 7 to 15 days of preparation. Total end-to-end timeline including preparation and filing is typically 25 to 45 days.
Yes. A special resolution requiring at least 75% shareholder approval is mandatory for conversion. The resolution authorises conversion under Section 18 and alteration of MOA/AOA. This resolution must be filed with the RoC via Form MGT-14 within 30 days of passing.
Three primary MCA forms are filed: Form MGT-14 (filing special resolution with RoC, fee ₹200 to ₹600), Form INC-3 (nominee consent for OPC), and Form INC-6 (application for conversion, fee ₹2,000 to ₹5,000). A practicing CA or CS must certify Form INC-6.
Yes, but the company must first reduce to a single member-shareholder. The second director can continue as an additional director (OPC can have up to 15 directors) but cannot hold any shares. All shares must be consolidated to one Indian citizen resident before filing Form INC-6.
If the company has secured creditors, a No Objection Certificate (NOC) from those creditors is required and must be attached to Form INC-6. For unsecured creditors, individual NOCs are not mandated, but the company must declare all outstanding debts in the conversion application.
Yes. Upon approval of Form INC-6, the Registrar of Companies issues a new Certificate of Incorporation reflecting the OPC status. The company retains its existing CIN with the suffix changed to indicate One Person Company. The original Pvt Ltd certificate stands cancelled from the date of the new certificate.
Yes. Altering the Memorandum of Association (MOA) and Articles of Association (AOA) is mandatory. The MOA must reflect single-member ownership and OPC-specific provisions. The AOA must include nominee clauses and OPC governance rules. Stamp duty for alteration varies from ₹100 to ₹5,000 depending on the state.
Total conversion cost ranges from ₹8,000 to ₹15,000 including government fees and professional charges. IncorpX's professional fee starts at ₹5,999. Government fees include Form INC-6 (₹2,000 to ₹5,000), Form MGT-14 (₹200 to ₹600), and state-wise stamp duty (₹100 to ₹5,000) for MOA/AOA alteration.
The government fee for Form INC-6 ranges from ₹2,000 to ₹5,000 depending on the company's authorized capital. Companies with authorized capital up to ₹1 lakh pay ₹2,000, while higher capital brackets pay proportionally more. Late filing attracts additional fees per MCA's penalty schedule.
Stamp duty for MOA/AOA alteration varies by state: Maharashtra ₹1,000 to ₹5,000, Delhi ₹500 to ₹2,000, Karnataka ₹500 to ₹3,000, Tamil Nadu ₹300 to ₹2,000, and Telangana ₹500 to ₹3,000. Additionally, share transfer (if applicable) attracts 0.25% stamp duty on the share value.
Exiting shareholders face capital gains tax on share transfers. Short-term gains (shares held under 24 months) are taxed at the member's income slab rate. Long-term gains attract 20% tax with indexation. If shares are bought back instead of transferred, the company pays 20% buyback tax under Section 115QA.
IncorpX's conversion package starts at ₹5,999 and includes document preparation, Form INC-6 filing, Form MGT-14 filing, MOA/AOA alteration drafting, nominee appointment (Form INC-3), CA/CS certification, and obtaining the new Certificate of Incorporation. Government fees and stamp duty are charged separately at actuals.
Yes, conversion is typically more cost-effective. Company closure (strike-off) costs ₹5,000 to ₹8,000 in professional fees plus ₹5,000 government fee, and takes 3 to 6 months. Conversion costs ₹8,000 to ₹15,000 total but preserves your company's legal identity, PAN, bank accounts, and contracts.
Under Section 450 of the Companies Act, the default penalty for non-filing or delayed filing is ₹10,000. Under Section 448, furnishing false statements in conversion forms attracts imprisonment up to 6 months and fine. Late filing of Form INC-6 attracts additional fees per MCA schedule.
Yes. The nominee can be changed at any time by filing Form INC-4 (Change of Nominee) with the RoC. The new nominee must provide written consent via Form INC-3 along with PAN, Aadhaar, and address proof. No government fee applies for nominee change, but professional charges of ₹1,000 to ₹2,000 are typical.
A Private Limited Company requires minimum 2 members and 2 directors, while an OPC needs only 1 member and 1 director (plus a nominee). OPC is exempt from AGM requirements and needs only 2 board meetings per year (vs 4 for Pvt Ltd). OPC cannot raise external equity; Pvt Ltd can have up to 200 members.
Yes. An OPC can be converted back to Pvt Ltd by filing Form INC-6 with the RoC under Section 18. This reverse conversion is mandatory if OPC's paid-up capital exceeds ₹50 lakhs or turnover exceeds ₹2 crores. IncorpX offers this OPC to Pvt Ltd conversion service starting at ₹5,999.
Convert if you plan to continue operations as a solo founder. Conversion preserves your CIN, PAN, bank accounts, contracts, and GST registration. Close (strike-off) only if you want to permanently cease business. Closure takes 3 to 6 months and dissolves the entity. Conversion costs ₹8,000 to ₹15,000 and takes 15 to 30 days.
OPC offers limited liability protection and separate legal entity status that a sole proprietorship lacks. In a sole proprietorship, the owner's personal assets are at risk for business debts. OPC also provides better credibility with banks, vendors, and government tenders. However, OPC has higher compliance costs (₹10,000 to ₹15,000 per year).
Yes. OPC is exempt from holding Annual General Meetings. OPC needs only 2 board meetings per year (one per half-year) vs 4 for Pvt Ltd. OPC with turnover below ₹2 crores is exempt from cash flow statement preparation. Annual ROC filing (AOC-4, MGT-7A) and audit remain mandatory for both.
Yes. The name suffix changes after conversion. For example, "ABC Private Limited" becomes "ABC (OPC) Private Limited." The RoC issues a new Certificate of Incorporation reflecting this change. You must update the new name on letterheads, invoices, bank accounts, and all government registrations within 30 days.
File Form INC-6 electronically through the MCA V3 portal at mca.gov.in. All filings are processed online by the jurisdictional Registrar of Companies. No physical visit to the RoC office is required. You need a valid Class 3 DSC and active MCA portal account for filing.
Step-by-step timeline: eligibility verification (1 to 2 days), share consolidation (5 to 10 days), board and special resolutions (1 to 3 days), Form MGT-14 filing (1 to 2 days), MOA/AOA alteration (2 to 3 days), nominee appointment (1 day), Form INC-6 filing (1 to 2 days), and RoC processing for new CoI (15 to 30 working days).
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