If a private limited company has a paid-up capital of less than Rs. 50 lakhs and an annual turnover of less than Rs. 2 crores, it can be converted into an OPC.An OPC will require a nominee. The whole process is time-taking because you will not be able to use the INC-29 procedure. It needs to be completed within 25 working days.Our services will include everything like the filing of the forms for conversion,the modification of your Memorandum of Association and Articles of Association.
On growing businesses need to lend money frequently. Proprietor has the personal liability for all this debt in the Sole Proprietorship. So, in case of non-payment of debt by the business, the Proprietor made to pay this debt by selling his personal assets. In an OPC, personal assets of the proprietor are safe and only the amount invested in starting the business will be lost under any circumstances.
In a Sole Proprietorship,the business would come to an end after the death of his promoter. Whereas, an OPC has a separate legal identity andit will be passed on to the nominee director and hence, its existence will be continued.
Annual filings are reduced to a great extent because an OPC can have only one director and a shareholder. Work related to share certificates and the statutory registers is also reduced.