Can A One Person Company Convert Into Another Business Structure?

Conversion Options for One-Person Companies (OPC) in India

1. Conversion into a Private Limited Company: An OPC can transform into a private limited company by meeting specific criteria, including a two-year operational period, substantial capital or turnover, creditor consent, and a timely resolution submitted to the ROC.

2. Voluntary Conversion into a Private Limited Company: An OPC, not meeting mandatory conversion conditions, can opt for voluntary conversion into a private limited company by passing a special resolution and submitting the required forms to the ROC.

3. Conversion into a Limited Liability Partnership (LLP): An OPC can also transform into an LLP if it fulfills certain conditions and receives approval from the ROC, which includes a two-year operational period, specific capital or turnover limits, creditor consent, and timely resolution submission to the ROC.

4. Conversion into a Sole Proprietorship or Partnership: If the owner of the OPC wishes to discontinue the company structure, they can choose to operate as a sole proprietorship or partnership, depending on their business needs.