Credence Corporate Solutions
×
Join Group For Compliance Updates
Conversion of Partnership to One Person Company

Conversion of Partnership to One Person Company

Get Special Discount

CONNECT TO AN EXPERT

Conversion of Partnership to One Person Company - Process, Procedure, Document Required, Fees, Eligibility, Duration

When the need arises, a Partnership firm might change to a One Person Company (OPC). Due to issues such as owner's liability, legal status, registration, and credibility, the Partnership might convert the business into an OPC. When a Partnership is changed to an OPC, the company's assets are protected because the owner's responsibility is limited to the value of their share. Partnerships that turn to an OPC also gain legal status because an OPC is a legal framework.

A One Person Company (OPC) is formed by a single individual. The Companies Act of 2013 governs and regulates OPCs. A partnership, on the other hand, is formed by a formal agreement between two or more parties to jointly manage and operate a business. A Partnership is a business arrangement in which two or more persons share earnings and losses. The Indian Partnership Act of 1932 governs and regulates Partnership firms.

Partnership vs. One Person Company

Legal entity: An OPC is a separate legal entity where the owner and the business are two distinct entities. In a Partnership, on the other hand, there is no concept of a separate legal entity. The Partnership and all of its participants are recognized as a single entity.

Liability: In a Partnership, the partners are personally accountable for any losses incurred by the firm. Partners have the drawback of unlimited liability, which means that the liability may extend to the partners' assets. An OPC, on the other hand, is a separate legal entity with limited liability. The sole owner has limited liability up to the amount of the share capital or the value of the company's shares in OPC.

Owner: In an OPC, the owner and the business are two distinct entities, whereas, in a Partnership, the owner and the business are the same.

Registration: A Partnership firm does not need to be registered. A One Person Company, on the other hand, must be registered under the MCA and Companies Act, 2013.

Conversion of Partnership to One Person Company - Get Expert Advice

Conversion of Partnership to One Person Company - Get Expert Advice

+91-9910606389, 18001236389
Connect with Expert WhatsApp

Conversion of Partnership to One Person Company Frequently Asked Questions

A Partnership that changes to an OPC gains various advantages. They are as follows: • According to the rules of the Companies Act of 2013, registration of an OPC with the MCA (Ministry of Corporate Affairs) is mandatory. A Partnership firm may or may not be registered; it is entirely voluntary to register a Partnership. This offers the OPC an advantage over the Partnership because it establishes the OPC's trustworthiness. • OPCs are private companies that are government-registered. As a result, receiving finance from financial institutions is easier for OPCs than for Partnerships. • In comparison to a Partnership, the OPC provides a more robust corporate structure because they are a legal entity with proper registration. • In a One Person Company, the owner and the business are two distinct entities which mean that it is different from its member. As a result, the members' assets are not accountable for any losses incurred by the firm. So, there are few liabilities in the case of OPCs.
• Every director in an OPC is required to have Director Identification Number. • To file the e-forms online with the MCA, the owner must receive a digital signature certificate and provide the Registrar of Companies with the same. • The person must come up with a name for his business. • After the name has been approved, the director must provide the required papers, which include the Aadhar card, PAN card, the Memorandum of Association, the Articles of Association, the proof of the registered office, etc. • Forms must be filed with the MCA. The papers will be reviewed by the Registrar of Companies. • The director will receive a Certificate of Incorporation after satisfactory verification by the Registrar.

Ask Questions about Conversion of Partnership to One Person Company

+91-9910606389, 18001236389
Ask Questions WhatsApp

Conversion of Partnership to One Person Company Related Sevices, You may be interested

Get Free Consultation on Conversion of Partnership to One Person Company

Get Free Consultation on Conversion of Partnership to One Person Company

+91-9910606389, 18001236389
Consult Now WhatsApp

Why to Choose
Credence Corporate Solutions
for Conversion of Partnership to One Person Company ?

30+

Offices in India

15+

Years Experience

SAVE

Your Time

CASH

Back Guarantee

Credence Corporate Solutions Pvt Ltd is one of the leading Online Business Solution Company in India, where any Large, Medium or Small business houses as also Entrepreneurs get Start-up services and Taxation solutions. One stop business set-up and corporate services company. We are a team of Professionals and Associates like Chartered Accountants, Company Secretary and Consultants with vast knowledge and experience, committed to provide consistent, customized and workable solutions in the fields of ROC, Taxation, Accounting, Labour Laws, Audits, etc...

Read More

Latest Updates

Get the latest company news, corporate information, and more on Credence Corporate Solutions. View this section for the recent information on Company Registration, Licenses, GST, Income Tax, Trademark, Product Mark and other topics. Get to chat with our business experts, read business articles, and stay up-to-date on the newest business news.

How is management structured in an LLP? Sep 27, 2023
Limited Liability Partnership (LLP)

How Is Management Structured In An LLP?

Management in an LLP: A Flexible and Collaborative Approach 1. Partnership Agreement: The partnership agreement is a key document in an LLP, outlining the management s...

Read More
What are the liability protections in an LLP? Sep 26, 2023
Limited Liability Partnership (LLP)

What Are The Liability Protections In An LLP?

Understanding Liability Protections in Limited Liability Partnerships (LLPs) 1. Limited Personal Liability: In LLPs, partners' personal assets are protected from b...

Read More

© 2020 CREDENCE CORPORATE SOLUTIONS PVT. LTD. | Website by Wits Digtal Pvt. Ltd.