The main reason for converting a Private limited company to an One Person Company (OPC) is to simplify the process of doing business and make it easier for a single promoter to own and manage the company with fewer legal compliances.
An OPC must have only one shareholder who is an individual and a resident of India.
The paid-up capital of the company should not exceed INR 50 lakhs or its average annual turnover should not exceed INR 2 crores in the immediately preceding financial year.
The shareholder should not already be a promoter or a director of another OPC.
The company must have only one director, who should be the same person as the sole shareholder.
The company must be in compliance with all the applicable laws and regulations, including those related to taxes and labor laws.
