OPC shall cease to continue its business as OPC when the paid-up share capital exceeds fifty lakhs rupees its average turnover of during the relevant period exceeds two crores. OPC shall be required to convert itself into a private company or public company by virtue of its paid-up share capital or average annual turnover.

Then OPC shall

Within 6 months of above situation/event, such OPC shall be required to convert itself into-

a)-a private company with a minimum of 2 members and 2 directors, or

b)-a Public Limited Company with a minimum of 7 members and 3 directors.

it shall give notice to ROC within 60 days in form no. in-5 it has ceased to be an OPC and is required to convert itself into the private or public company.

Key Considerations of a Mandatory Conversion

Under the mandatory conversion, if the OPC (One Person Company) crosses the threshold limits mentioned above, it should mandatorily convert itself within a period of two months.

Voluntary Conversion

It is possible only after the expiry of 2 years from the date of incorporation of OPC.

In case of conversion of OPC into public limited company voluntarily, the procedure shall be the same but the requirement for filing forming-5 shall not be applicable.

On compliance with the above requirement, roc shall close the former registration as One Person Company Registration documents submitted as issue a fresh certificate of incorporation, in the same manner as fresh registration