Formation and structuring of any business depends upon various factors like financial stability, control over business, management decisions etc. on basis of such factors businessperson decides to adopt model for his business that could be a sole proprietorship, partnership firm, company, HUF etc.
In India, setting up of business in form of a Company is highly favoured and accepted when compared with other forms of business. Although a Company itself can be incorporated into three categories, Private Limited Company or Public Limited Company or One Person Company, thereafter it can bifurcated as per the nature of business, capital, guarantee like non-profit organisation, Company limited by guarantee etc.
People were generally inclined towards formation of private company as it can be easily formed when compared to incorporation of a public limited company. However, with the enforceability of Companies Act, 2013, new concept in India, One Person Company has gained significant popularity due to its unique features like ownership and control is retained by single person similar to a sole proprietorship which makes the idea of incorporating a one person company lucrative to all sort of businessperson.
One Person Company is easily incorporated with sole member , one nominee and one director only. Any person can arrange for nominee and in almost every OPC sole member acts as director, thus there is no hassle in constituting board of director as required in case of private company. As OPC is a hybrid form of sole proprietorship and a private company it enjoys benefit of both including but not limited to full control over business, easy management, lesser compliance, separate legal entity etc.
In India, formation of Business in form of a Company, specifically private company, is most favoured form with respect to other alternatives as available for business like Proprietorship, Society, Firm, LLP etc. Although when considered from the prospective of legal entity and perpetual succession as a feature of form of business after Company, formation of LLP is considered to be apt.
Public company is one of the popular and well known forms of business structure. Besides Company various other business form is prevalent in India like proprietorship, HUF, Firm, LLP etc. Although when considered from the prospective of legal entity and perpetual succession as a feature of form of business after Company, formation of LLP is considered to be apt.
In the current scenario, some businessman already running their business through companies thinks it fit to convert its Company into LLP due to below given reasons:
Regulatory authorities are gradually becoming stricter by introducing new corporate governance practice for Companies as compared to private company due to increased stakeholder interest;
Increasing penalties and imprisonment for non-compliance of provisions;
To retain control over business by few people;
Easy management;
Reduction of extra compliance as applicable on Companies;
Legal Compliance Cost Saving.
Structuring of any business model can be done in various ways. Any person willing to set up a business may opt for any form of business depending upon his/ her need and requirement i.e. Sole Proprietorship, Partnership Firm, LLP, Society, Trust, Company etc.
It has been observed that people are generally inclined towards setting up of a Company because of the sense of reputation and features involved in this form of business besides the fact that running a company takes more effort than carrying any other form of business.
We already know that company can be categorised under various heads like one person company, private company, public company, section 8 companies etc. and companies act, 2013 has also specified the provisions for conversion from one category of company into another.
It often happens that a person carrying business in form of firm, LLP, society etc may want to convert its business into form of a Company. Say a partnership firm wants to convert itself into a company or a LLP thinks fit to run a company to carry its existing business instead of LLP. All these conversations are governed by the provisions of companies act 2013 (Act) which has specified the rules following which certain form of business can convert itself into company.
In India, formation of Business in form of a Company, specifically private company, is most favoured form with respect to other alternatives as available for business like Proprietorship, Society, Firm, LLP etc. Although when considered from the prospective of legal entity and perpetual succession as a feature of form of business after Company, formation of LLP is considered to be apt.
Public company is one of the popular and well known forms of business structure. Besides Company various other business form is prevalent in India like proprietorship, HUF, Firm, LLP etc. Although when considered from the prospective of legal entity and perpetual succession as a feature of form of business after Company, formation of LLP is considered to be apt.
In the current scenario, some businessman already running their business through companies thinks it fit to convert its Company into LLP due to below given reasons:
Regulatory authorities are gradually becoming stricter by introducing new corporate governance practice for Companies as compared to private company due to increased stakeholder interest;
Increasing penalties and imprisonment for non-compliance of provisions;
To retain control over business by few people;
Easy management;
Reduction of extra compliance as applicable on Companies;
Legal Compliance Cost Saving.
Structuring of any business model can be done in various ways. Any person willing to set up a business may opt for any form of business depending upon his/ her need and requirement i.e. Sole Proprietorship, Partnership Firm, LLP, Society, Trust, Company etc.
It has been observed that people are generally inclined towards setting up of a Company because of the sense of reputation and features involved in this form of business besides the fact that running a company takes more effort than carrying any other form of business.
We already know that company can be categorised under various heads like one person company, private company, public company, section 8 companies etc. and companies act, 2013 has also specified the provisions for conversion from one category of company into another.
It often happens that a person carrying business in form of firm, LLP, society etc may want to convert its business into form of a Company. Say a partnership firm wants to convert itself into a company or a LLP thinks fit to run a company to carry its existing business instead of LLP. All these conversations are governed by the provisions of companies act 2013 (Act) which has specified the rules following which certain form of business can convert itself into company.
An entity can be incorporated under three classes in the form of Company i.e. as a one person company, Private limited Company or a Public Limited Company. Public limited companies can be further classified as listed or unlisted public company.
To commence business as a private limited company is beneficial at initial stage as administration and management of a private limited company is less cumbersome than public limited company. However, owners of private limited company may convert their company into a public limited company if they consider it fit for their business and further expansion.
This is about complete information about registration and incorporation of Companies Act. Easy understanding with keeping good thought in mind and you may not require more to search other sites.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION.
STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED .
“Two is better than one” basically this concept is foundation of a traditional partnership firm where two or more persons get together to carry on some lawful business and share profit and loss among themselves as agreed upon by them.
Partnership Firm as a form of business which has its own restriction and have limited reach among public, in order to enhance the business through partnership a hybrid form of business structure was introduced that has basic features of partnership merged with the features of a Company.
Nidhi Companies are body corporates that are incorporated with an object to provide benefits to its member by promoting saving and thrift habit among its members. These companies are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
Nidhi Companies must have the object of cultivating the habit of thrift and saving amongst its members and they cannot carry any other activity apart from this object. It receive deposits from, and lend to, its members only and all activities do be done for mutual benefit of members only.
Nidhi Companies are regulated by Ministry of Corporate Affairs and Reserve Bank of India. Since there is involvement of public money in such companies, regulators keep an eye on Nidhi company, still public interest has been adversely affected by Nidhi Companies which accept deposits from investors with malafide intention like 2004’s high-profile ponzi scam involving Chennai-based PNL Nidhi Limited that allegedly collected Rs68.50 crore from over 13,000 investors and defaulted in repayment.
Due to such scams RBI and Companies Act,2013 stringent the norms for Nidhi Companies and keep check on acceptance of deposit from Members and granting of Loan to members.
An entity can be incorporated under three classes in the form of Company i.e. as a one person company, Private limited Company or a Public Limited Company. Public limited companies can be further classified as listed or unlisted public company.
To commence business as a private limited company is beneficial at initial stage as administration and management of a private limited company is less cumbersome than public limited company. However, owners of private limited company may convert their company into a public limited company if they consider it fit for their business and further expansion.
This is about complete information about registration and incorporation of Companies Act. Easy understanding with keeping good thought in mind and you may not require more to search other sites.
VARIOUS FORMS OF INCOME TAX ,BASIC KNOWLEDGE OF GST PPT WHICH REQUIRED FOR A STUDENT TO UNDERSTAND DIRECT AND INDIRECT TAXATION.
STUDENTS STUDYING B.COM AND M.COM WILL BE BENEFITED .
“Two is better than one” basically this concept is foundation of a traditional partnership firm where two or more persons get together to carry on some lawful business and share profit and loss among themselves as agreed upon by them.
Partnership Firm as a form of business which has its own restriction and have limited reach among public, in order to enhance the business through partnership a hybrid form of business structure was introduced that has basic features of partnership merged with the features of a Company.
Nidhi Companies are body corporates that are incorporated with an object to provide benefits to its member by promoting saving and thrift habit among its members. These companies are also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
Nidhi Companies must have the object of cultivating the habit of thrift and saving amongst its members and they cannot carry any other activity apart from this object. It receive deposits from, and lend to, its members only and all activities do be done for mutual benefit of members only.
Nidhi Companies are regulated by Ministry of Corporate Affairs and Reserve Bank of India. Since there is involvement of public money in such companies, regulators keep an eye on Nidhi company, still public interest has been adversely affected by Nidhi Companies which accept deposits from investors with malafide intention like 2004’s high-profile ponzi scam involving Chennai-based PNL Nidhi Limited that allegedly collected Rs68.50 crore from over 13,000 investors and defaulted in repayment.
Due to such scams RBI and Companies Act,2013 stringent the norms for Nidhi Companies and keep check on acceptance of deposit from Members and granting of Loan to members.
Nidhi Company - Registration & OperationsLegalDelight
In India, concept of Nidhi Companies has been set up way back in 20th Century where group of people came together with a purpose to resolve the monetary issues of people residing in a particular area or town so that they did not get prey on hands of moneylenders. It basically operates on principle of mutual benefits and also known as Permanent Fund, Benefit Funds, Mutual Benefit Funds and Mutual Benefit Company.
Since then, Nidhi Company has gained popularity as a form of business. Main object of Nidhi Company is accepting money and promoting the habit of saving and growing value of money but activities of a Nidhi company are restricted to their members only.
In India concept of Nidhi Company is mostly popular in southern part of India almost 80% of the Nidhi Companies are operational in South India. Since object of Nidhi Companies include accepting of deposits its functioning came under the ambit of Non-Banking Financial Companies it is also governed by Reserve Bank of India besides being regulated under Companies Act, 2013.
Producer Company Management & AdministrationLegalDelight
Producer company is corporate structure where group of farmers comes together to act as member of the company to carry agricultural business on self-help basis with an intention to earn profit and provide help to each member of its company through democratic management.
These are incorporated to promote cultivation, harvesting, pooling, handling marketing of primary produce and endeavor for export and import of agriculture produce.
Part IX A of the Companies Act, 1956 states provisions of Producers Companies which is subsisting as in Companies Act, 2013 till the time government does not enact special law for producer companies.
In this article we will discuss about management and administration of Producer Company.
India is an agrarian economy where 58% of the population depends on agriculture for its livelihood and it provides employment for 42 % of Indian Population. Instead of playing such a pivot role in the economy of India, Agriculture sector has not experienced that much growth as compared to other sector.
Considering the various obstacle that agriculture sector faces like limited capital and asset base, climate dependency, electricity water supply, transportation etc. lawmakers had resorted to provide a corporate structure to agricultural activities in India. Thus concept of producer company was introduced which basically takes all the features of a cooperative society and merged with the framework of a body corporate.
Under Producer Company, group of farmers comes together to act as member to carry agricultural business on self-help basis with an intention to earn profit and provide help to each member of its company through democratic management. Some of examples of producer companies in India are:
Dhari Krushak Vikash Producer Company Limited, Gujarat
Rangsutra in Kerala
Sahyadri Farmer Producer Company, Nasik
Nachalur Farmer Producer Company, Tamil Nadu etc
Auditors are appointed by the members at the general meeting of the Company, similarly power to remove auditor before his/her/its term is also entrusted with the members. Further in case of resignation of auditor the casual vacancy arise will be also be filled ultimately through members of the Company at the members meeting.
Section 139 of Companies Act, 2013 (“Act”) explains the situation of casual vacancy whereas Section 140 of the Act deals with removal, resignation of auditor and giving of special notice.
Strike off can be understood as removal of something from somewhere, when it comes to the term of business , it means removing the very existence of any company by removing its name from the records of respective Registrar of Companies.
Strike off in general term is known as to remove or erase someone from somewhere where the same used to exist. In business term strike off of Companies means cessation of existence of a Company and removing the name of the Company from the database of list of companies maintained with the Ministry of Corporate Affairs of India.
Strike off in general term is known as to remove or erase someone from somewhere from which it used to exist. In business term strike off of Companies means cessation of existence of a Company and removing the name of the Company from the database of list of companies maintained with the Ministry of Corporate Affairs of India.
Extensible Business Reporting Language (XBRL) is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It is a manner of submission of financial statement with the authorities.
All Companies incorporated in India are required to file their financial statements with the ROC or other authorities, these filings are done by submitting details and copy of balance sheet and profit and loss statement. Such filing can also be completed through XBRL mode whereby financial details of Company are submitted in more exhaustive form with the regulators.
Director Identification Number (DIN) is the unique number allotted to Director as their identity of being Director.
The Central Government has been entrusted with the power to allot DIN to applicants who are aspiring to become Directors. This power of Central Government is delegated to the Regional Director (Northern Region), Noida generally known as DIN Cell.
A person can be allotted DIN once and it will remain same through the life-time of the applicant and shall not be allotted to any other person.
However, it could happen that sometime need arises to cancel or deactivate the already allotted DIN. In such case the Central Government has power to deactivate/cancel/surrender DIN suo-motto, provisions of which is given under Companies Act 2013.
In India, various business models exist like proprietorship, company, limited liability partnership (LLP), HUF etc. among these Partnership Firm is one of the popular and widely accepted form of business where two or more person are intending to carry on any business activities. As when more than one or two person are willing to start business, sole proprietorship may not be appropriate form whereas formation of Company requires sufficient amount of fund and calls for various compliances, thus in such scenario forming a Partnership Firm turns out to best alternative.
Since partnership as a form of business has its own limitation like no separate legal entity, no limited liability, capital funding crunches etc., partners are now inclining towards conversion of their partnership firm into a Limited Liability Partnership having features similar to a corporate.
William Shakespeare once said “What's in a name?” seldom he knew that after centuries, it is “the Name” only that will matters be it for individual or for corporates.
Name is an identity for any Company by which it makes its presence in the corporate world. But corporates too recourse to change in name of their Companies and continue their presence with a new name
Process for Declaration & Payment of DividendLegalDelight
“Dividend” means a distribution of any sums to Members by the Company out of profits and wherever permitted out of free reserves available with the Company.
Dividend is basically a return on investment made by an investor in any Company. Generally when business of any company is thriving, Company either resorts to reinvest the profits into the business or distribute a part of their earning among the shareholders as dividend on shares.
Based on the profit or retained earnings, management of the Company may decide for quantum of the dividend to be paid.
Do you want to become an businessman and have an idea of running an app or software and looking for software developer to help you to build the brick of your dreams then trust us in today’s time, engaging a software developer is seems like a cakewalk, if only, considered in broader concept, however the reality is far different where the cakewalk may turn into walking alongside dinosaurs as in a Jurassic park, where any time situations overturn leading into a grave uncertainty.
well-executed contract is the need of an hour to get the complete control and ownership over the software, else, might be possible you will find yourself in a situation where you have spent lots of money on development of software and got nothing in return.
Tough, there can’t be “One Size Fits All” kind of contract for software/ app development, but in this Article, we would emphasize our focus area to make Businessman understand the clauses and negotiation points to be discussed while taking services of software developer.
Every draftsman while drafting any contract must have acquired and develop certain skills so that he/ she can suitably do the justice with any contract and the draftsman should have the knowledge of exact intention and the purpose of entering into contract so that the draftsman can successfully give legal written shape to the intention of the parties without any ambiguity, violating and breaching any applicable law which might be applicable upon the parties to the contract.
Advanced mobile phone, PC combined with web entrance has expanded ecommerce based business exchange as of late at an excellent speed. In this way every business person needs to have web presence currently like the physical presence which was significant in earlier times. Presently both presence (physical and online) is by all accounts need of current days particularly for youthful business visionary.
In this time of modernisation, where the life of city, with accessibility of easy facilities and opportunities, appears to attract the youth of the society. The reason behind attractions is to achieve their dreams and to be independent. Numerous individuals go out and move to another city just to win an occupation, since they are out of their home town they have to stay in Hostels, PG's or leased house.
It can be said without any iota of doubt that parties to any agreement consider themselves more secured as it provide transparency in the work. At the time of execution of any agreement one must keep in mind that an agreement should be balanced one and it should be as per The Indian Contract Act, 1872 and law of the land, this will enable the parties to enforce any clause during distress or seek suitable remedy from court of law.
Non Disclosure Agreement while approaching ConsultantLegalDelight
Every person wants his business to grow leaps and bound but everyone not possess all skills or knowledge of every aspect of business, It may not be possible for an individual to carry out all sort of activities on his own. Sometimes, the work needs to be performed by some expert having expertise in particular domain. For Ex. Services of CA, CS, Lawyer, Website Developer, PR Marketing, Engineer etc.
So, hiring of consultant to seek expert advice becomes need of the hour. However, in the recent time, it is being witnessed that hiring a consultant to work on certain project involves element of risk, if project has been assigned without having an enforceable confidentiality agreement.
In absence of confidentiality agreement, consultant may use the information & documents shared by the client during the project for their own purpose without permission of client.
It is very important to protect such information from being leaked out. Hence, client needs to enter into a Non Disclosure Agreement with the consultant/professional to safeguard all such business information shared with them during the validity of Non-Disclosure Agreement (NDA).
Non disclosure agreement (NDA) is entered into between the Employer (the owner of the Confidential Information) and the Employee (the receiver of the Confidential Information) with respect to the protection of confidential information/ documents, received by employee during the tenure of his/ her employment with the Company, from sharing without prior permission of Employer.
NDA is a legal contract between two parties that outline the Confidential Information shared by the Parties but restrict the access to the other third party. For a business to grow, it is utmost important to keep certain information intact within its organisation. Therefore, employer needs to ensure that the confidential information is not passed on to any person without his permission, which may otherwise create hindrance in the growth and success of its business.
Textile Chemical Brochure - Tradeasia (1).pdfjeffmilton96
Explore Tradeasia’s brochure for eco-friendly textile chemicals. Enhance your textile production with high-quality, sustainable solutions for superior fabric quality.
Salma Karina Hayat is Conscious Digital Transformation Leader at Kudos | Empowering SMEs via CRM & Digital Automation | Award-Winning Entrepreneur & Philanthropist | Education & Homelessness Advocate
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
Also Intelisync, our cutting-edge service designed to streamline and optimize your marketing efforts, leveraging data-driven insights and innovative strategies to drive growth and visibility for your project.
With a data-driven approach, transparent communication, and a commitment to excellence, InteliSync is your trusted partner for driving meaningful impact in the fast-paced world of Web3. Contact us today to learn more and embark on a journey to crypto marketing mastery!
Ready to elevate your Web3 project to new heights? Contact InteliSync now and unleash the full potential of your crypto venture!
When listening about building new Ventures, Marketplaces ideas are something very frequent. On this session we will discuss reasons why you should stay away from it :P , by sharing real stories and misconceptions around them. If you still insist to go for it however, you will at least get an idea of the important and critical strategies to optimize for success like Product, Business Development & Marketing, Operations :)
Reflect Festival Limassol May 2024.
Michael Economou is an Entrepreneur, with Business & Technology foundations and a passion for Innovation. He is working with his team to launch a new venture – Exyde, an AI powered booking platform for Activities & Experiences, aspiring to revolutionize the way we travel and experience the world. Michael has extensive entrepreneurial experience as the co-founder of Ideas2life, AtYourService as well as Foody, an online delivery platform and one of the most prominent ventures in Cyprus’ digital landscape, acquired by Delivery Hero group in 2019. This journey & experience marks a vast expertise in building and scaling marketplaces, enhancing everyday life through technology and making meaningful impact on local communities, which is what Michael and his team are pursuing doing once more with Exyde www.goExyde.com
Explore Sarasota Collection's exquisite and long-lasting dining table sets and chairs in Sarasota. Elevate your dining experience with our high-quality collection!
How to Build a Diversified Investment Portfolio.pdfTrims Creators
Building a diversified investment portfolio is a fundamental strategy to manage risk and optimize returns. For both novice and experienced investors, diversification offers a pathway to a more stable and resilient financial future. Here’s an in-depth guide on how to create and maintain a well-diversified investment portfolio.
What You're Going to Learn
- How These 4 Leaks Force You To Work Longer And Harder in order to grow your income… improve just one of these and the impact could be life changing.
- How to SHUT DOWN the revolving door of Income Stagnation… you know, where new sales come into your magazine while at the same time existing sponsors exit.
- How to transform your magazine business by fixing the 4 “DON’Ts”...
#1 LEADS Don’t Book
#2 PROSPECTS Don’t Show
#3 PROSPECTS Don’t Buy
#4 CLIENTS Don’t Stay
- How to identify which leak to fix first so you get the biggest bang for your income.
- Get actionable strategies you can use right away to improve your bookings, sales and retention.
2. INTRODUCTION
⬥ Formation and structuring of any business depends upon various factors like financial stability, control over business,
management decisions etc. on basis of such factors businessperson decides to adopt model for his business that could be a sole
proprietorship, partnership firm, company, HUF etc.
⬥ In India, setting up of business in form of a Company is highly favoured and accepted when compared with other forms of
business. Although a Company itself can be incorporated into three categories, Private Limited Company or Public Limited
Company or One Person Company, thereafter it can bifurcated as per the nature of business, capital, guarantee like non-profit
organisation, Company limited by guarantee etc.
⬥ People were generally inclined towards formation of private company as it can be easily formed when compared to
incorporation of a public limited company. However, with the enforceability of Companies Act, 2013, new concept in India, One
Person Company has gained significant popularity due to its unique features like ownership and control is retained by single
person similar to a sole proprietorship which makes the idea of incorporating a one person company lucrative to all sort of
businessperson.
⬥ One Person Company is easily incorporated with sole member , one nominee and one director only. Any person can arrange for
nominee and in almost every OPC sole member acts as director, thus there is no hassle in constituting board of director as
required in case of private company. As OPC is a hybrid form of sole proprietorship and a private company it enjoys benefit of
both including but not limited to full control over business, easy management, lesser compliance, separate legal entity etc.
2
3. REASON’S TO CONVERT
⬥ Regulatory authorities are gradually becoming stricter by introducing new corporate governance practice for Companies.
⬥ Increasing penalties and imprisonment for non-compliance of provisions.
⬥ To retain control where sole person handles business.
⬥ Easy management.
⬥ Reduction of extra compliance as applicable on Companies.
⬥ More emphasis and focus on growth of business.
3
4. COMPARATIVE TABLE - PVT & OPC
4
Particular Private Limited Company One Person Company
Definition
Section 2(68) of Companies Act, 2013
"Private company" means a company which by its articles,
(i) restricts the right to transfer its shares;
(ii) except in case of One Person Company, limits the number of its members to two
hundred:
Provided that where two or more persons hold one or more shares in a company jointly,
they shall, for the purposes of this clause, be treated as a single member:
Provided further that—
(A) persons who are in the employment of the company; and
(B) persons who, having been formerly in the employment of the company, were
members of the company while in that employment and have continued to be members
after the employment ceased,
shall not be included in the number of members; and
(iii) prohibits any invitation to the public to subscribe for any securities of the company;
Section 2(62) of Companies Act, 2013
One Person Company means a
company which has only one person as
a member.
5. COMPARATIVE TABLE - PVT & OPC
5
Particular Private Limited Company One Person Company
Minimum Number of Members Two One
Maximum Number of Member Two Hundred with exclusion given in definition Only one person can be member
Nominee No concept of Nominee One Nominee
Minimum number of Directors Two One
Transfer of Shares Restricted Sale of share results into transfer of whole business since the
owner is the sole member of OPC
Control Control with all shareholders Full control as sole member of OPC
Quantum of Penalty High Less
Activities No restriction Cannot carry business of Non-Banking Finance Company
6. PROCESS FOR CONVERSION
⬥ Any director or person authorised by the Board will dispatch a notice to call for Board Meeting. Notice shall be given as per
section 173 of Act read with SS 1 on Board Meetings.
⬥ Conduct Board Meeting and consider the proposal for conversion of Company into OPC.
⬥ Post approval , dispatch notices for calling an EGM/ AGM to all the members in accordance with provisions section 101 of Act
read with SS 2 on General Meetings.
⬥ Accord approval of Members through Special Resolution at EGM/ AGM for conversion.
⬥ Ensure Before passing such resolution, the company shall obtain No objection in writing from members and creditors
⬥ File E form MGT-14 to submit special resolution with the ROC and after approval of MGT-14 file E form INC-6, application to
conversion within 6 months of passing resolution
⬥ Attach requisite documents with INC-6 like affidavits, list of members, creditors etc. and on being satisfied and complied with
requirements, the Registrar shall issue the Certificate.
6
7. KEY TAKEAWAYS
⬥ Company should decide before conversion regarding the sole shareholder and nominee.
⬥ Company should confirm that it does not carry NBFC activity as OPC are not allowed to carry NBFC activity.
⬥ Company should ensure all compliance with respect to returns and forms to be filed with the MCA.
⬥ As per rule 7 of The Companies (Incorporation) Rule, 2014, a section 8 company i.e. non profit making companies are not
allowed to convert into a one person company
⬥ Registration of a company under this section shall not affect any debts, liabilities, obligations or contracts incurred or entered
into, by or on behalf of the company before conversion and such debts, liabilities, obligations and contracts may be enforced
in the manner as if such registration had not been done
7
8. COMPLIANCE AFTER CONVERSION
⬥ Print of New Memorandum of Association and Article of Association to reflect conversion.
⬥ Change in Sign Board, Letter head, stationary and other items where old name used to be displayed.
⬥ Make application to update name in PAN.
⬥ Send intimation and application to other authorities where Company is registered i.e. GST, EPF, ESI etc.
⬥ Send intimation to various suppliers and parties with whom Company has business.
⬥ Send intimation to banks where Company is maintaining bank accounts.
It is pertinent to note that the above stated regulatory framework are as per Companies Act, 2013 only, If any Company is
registered with other any regulatory bodies like RBI, MSME, IRDA , Companies have to follow additional compliance as prescribed
by different regulators under which Company is registered.
8