Convert Sole Proprietorship to OPC


One person company is an improved and better form of a sole proprietorship firm. One person companies are a great business organization structure for medium-sized businesses. One person company is an improved and better form of a sole proprietorship firm and thus conversion of sole proprietorship into One Person Company is a good business decision. This business structure gives the single promoter a full control over the company and at the same time limiting his liabilities to safeguard his personal assets. The owner of this company is a shareholder. Similar to Private Company, OPC may also appoint a distinct individual as director for its management. Appointment of a nominee is mandatory in case of OPC.


Benefits of Proprietorship to Partnership Conversion


Separate Legal Entity hence limited liability

Protection of the company’s personal assets assures that the owner has limited liability to the extent of his/her own share.

Opens better business avenue's

Large organizations prefer to deal with OPC instead of proprietorship firms. OPC is registered just like a private company and private companies are the trusted form of business which makes it easy for them to get funding from the financial institutions. It gives suppliers and customers a sense of confidence in the business.

An easy to manage structure

The structure of OPC is manageable as there is only one member. There is no requirement to hold an annual or added ordinary general meeting. There is no requirement to wait for anyone’s approval as there is only one person who is the single authority to make decisions.

Organized Structure

The OPC gives the company a structure similar to a private limited company and hence make it organized with the benefit of limited liability. A sole proprietorship does not provide an organized structure.

Documents Required for Proprietorship to OPC Conversion India


Identity Proof

Scanned copy of PAN Card of all directors, nominee and Aadhar card/ Voter ID/ Passport/ Driving License.

Address Proof

Latest Bank statement/ Utility bill in the name of director and nominee which should not be older than two months

Registered Office Proof

No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property)/ Registry Proof or House Tax Receipt (in case of owned property)

Consent of nominee

Written consent of nominee is required to be filed with the Registrar of Companies (RoC)

Passport size photograph

Latest Passport sized photograph of the directors and nominee.

How to Convert Proprietorship to OPC Online with CCA?

1. Fill the form given on the right

2. Select your package

3. Fill the company details

4. Pay the amount & done

Once you done, our expert will contact you.



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    Frequently Asked Questions

    1 What is the minimum capital requirement to start OPC?
    The capital requirement of OPC and a private limited company are the same. It needs an authorized capital of ₹1 lakh, to begin with. But, none of this actually needs to be paid-up. This means that you don’t really need to invest any money into the business. The capital should not be more than ₹50 lakh during incorporation.
    2For how long is the Company incorporation valid for?
    Once a Company is incorporated, it will be active and in-existence as long as the annual compliance is met regularly. In case, annual compliance is not complied with, the Company will become a Dormant Company and may be struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.
    3What are the compliance requirements for OPC?
    - An OPC limited by shares must comply with the following requirements: o Must have a minimum authorized share capital of ₹ 1 Lac. o Transfer of shares to anyone else is not allowed. o An OPC is prohibited from giving any invitations to the public to - subscribe to the securities of the company. - When the OPC limited by shares or by guarantee, enters into a contract with the sole member of the company who is also the director of the company; the terms of contract or offer must be recorded in writing. Also, the same must be contained in a memorandum or recorded in the minutes of the Board meeting held next after entering into the contact. - An OPC must inform the Registrar about every contract entered into by the company with the sole member of the company within a period of fifteen days from the date of approval.
    4Can an individual apply for more than one OPC at a time?
    No, an individual can form only one OPC at a time. The rule is the same for the nominee director too.
    5What are the pre-requisites for One Person Company (OPC) Registration in India?
    To register One Person Company (OPC) in India, acquiring the DSC (Digital Signature Certificate) and DIN (Director Identification Number) by all the directors and Subscriber to MOA (owner) along with the Nominee is mandatory. The Registered Office shall also be in existence for online Private Limited Company Registration.
    6What should be taken care of to ensure quick incorporation of One Person Company online?
    The promoter of the company should make sure that the proposed name of the OPC for online registration is very unique. Further, all the documents with respect to the Subscriber, Nominee and Directors as well as Registered Office shall be as per the requirement. To know more about choosing the name for the company, please visit here Mark Business Identity Wisely – Choosing the name of Company
    7Can I convert One Person Company into a Private Limited Company even after registration of One Person Company (OPC)?
    An OPC can be converted into a Private or Public Company only after 2 years from the date of Incorporation.
    8Who is the nominee in One Person Company?
    The requirement to appoint a nominee is prescribed in order to retain the character of Perpetual Existence i.e. Uninterrupted Existence of the One Person Company. A nominee shall be an individual and is to be appointed at the time of incorporation of OPC. In the event of death or incapacity to enter into any contract by existing member, the nominee will become the member of one person company.
    9How to Inform ROC about the change in membership of OPC?
    The company shall file form INC-4 in case of cessation of member of OPC on account of death, incapacity to contract or change in ownership. In the same form, user needs to provide details of the OPC’s new member.

    More Questions?

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    More Questions?

    Contact us for additional assistance