Convert a Private Limited Company to an OPC
A Private Limited Company can be converted into an OPC if it only has a paid-up capital of less than INR50 lakhs and an annual turnover of less than INR2 crores.
It is possible for an OPC to convert incorporate forms of businesses and vice versa with less compliances and formalities.
If a Private Limited Company has a paid-up capital of less than INR 50 lakhs and an annual turnover of less than INR 2 crores, it can convert itself into an OPC. Similarly, if an OPC crosses an average three year turnover of INR 2 crores, or has a paid-up capital of over INR 50 lakhs, it should be converted into a Private or Public Limited Company within six months.
The personal property of the director is always safe in a one-person company.
In the event of death of the owner, the property doesn’t cease to exist but would pass on to the nominee director, continuing its existence.
Since one-person companies have to audit annually, it has greater credibility among vendors.