Wednesday 24 September 2014

CONVERSION OF PRIVATE COMPANY INTO ONE PERSON COMPANY

A private company other than a company registered under section 8 of the Act having paid up share capital of fifty lakhs rupees or less or average annual turnover during the relevant period is two crore rupees or less may convert itself into one person company by passing a special resolution in the general meeting. [Rule 7(1)]
Before passing such resolution, the company shall obtain No objection in writing from members and creditors. [Rule 7(2)]
The one person company shall file copy of the special resolution with the Registrar of Companies within thirty days from the date of passing such resolution in Form MGT – 14. [Rule 7(3)]
The company shall file an application in Form INC – 6 for its conversion into One Person Company along with fees as provided in the Companies (Registration offices and fees) Rules, 2014, by attaching the following documents, namely:-
(i) The directors of the company shall give a declaration by way of affidavit duly sworn in confirming that all members and creditors of the company have given their consent for conversion, the paid up share capital company is fifty lakhs rupees or less or average annual turnover is less than two crores rupees, as the case may be;
(ii) the list of members and list of creditors;
(iii) the latest Audited Balance Sheet and the Profit and Loss Account; and
(iv) the copy of No Objection letter of secured creditors. [Rule 7(4)]
On being satisfied and complied with requirements stated herein the Registrar shall issue the Certificate.

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