Convert OPC to private company

When should an OPC be compulsorily converted to a private company?

Hey @Dia_malhotra

It is mandatory for an OPC to convert into a Private Limited Company within 6 months if it surpasses the below-given parameters:

  1. Paid up share capital of an OPC exceeds Rs.50 lakhs and
  2. Average annual turnover of immediately preceding three consecutive financial years exceeds 2 crores.

You can read the entire process of conversion of an OPC to Pvt Ltd Co. here:

Here are the key differences between a Private Limited Company and an OPC

Hope this helps!

Hey Hi
Greetings of the day,
What if I want to convert the OPC into PVT LTD but the time frame of 2 years has not been surpassed nor any other condition of Capital Clause or Turnover has not crossed but still it needs to be converted , is there any alternative or any rules where you can convert before time?

Hello @CSDEV999

Conversion of OPC to any other Company is only possible by way of:

  1. Voluntary Conversion: If two years have surpassed since incorporation, an OPC can voluntarily convert.
  2. Compulsory Conversion: If paid up share capital exceeds Rs. 50 lakhs or average turnover exceeds Rs. 2 crore.

Hence, in your case it is not possible to convert the OPC to a Pvt Ltd Co., since none of the above-mentioned conditions are satisfied.

Hope this helps!