Convert Sole Proprietorship into OPC

Exporters of products or services must provide a Letter of Undertaking (LUT) in the GST system.

*Subject To Change On Market Conditions

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A solo proprietorship is run and owned by one individual. Small investors like sole proprietorships because they are extremely simple to establish. Additionally, the proprietor is entitled to all profits made by the sole proprietorship, but he or she is also directly liable for any losses, obligations, or legal infractions arising from the operation. For instance, since the owner is viewed as one and the same, the business cannot continue if the owner passes away or becomes disabled because any debts owed by the company will be paid from the owner’s personal money.

Starting a one-person company eliminates all of the aforementioned issues and provides additional benefits for small business owners, traders, and entrepreneurs because it is less expensive to register and maintain the firm. When a one-person company is incorporated, it becomes a distinct legal entity with perpetual succession and limited liability. As the name implies, a One Individual Company (OPC) can be registered with just one person serving as both the director and shareholder. In comparison to a sole proprietorship, a one-person firm offers additional benefits such limited liability, corporate identity, quick decision-making, management flexibility, simple banking, and lower tax obligations.

How to Change a Sole Proprietorship to a One-Person Company


Obtaining Director Identification


Obtaining a certificate for a digital signature


Request name approval


composing the articles of association and the memorandum of association


signing and completing various documents, such as MOA and AOA in the appropriate electronic forms with the appropriate companies


Receipt of Certificate of Incorporation from Registrar of Companies

Some of the benefits of changing from aproprietorship to a OPC

A One person firms will be expected to abide by procurements that apply to private limited companies but with a variety of exceptions, and will therefore be under less compliance-related pressure to comply.

A one-person company that is incorporated will also have the feature of perpetual succession and make it easier for business owners to raise financing. The OPC was created by its owner as an artificial entity.

Financial and banking institutions favour lending money to businesses over proprietary ones. In the majority of cases, business owners must change their organisation into a Private Limited company before approving money. Therefore, registering your startup as a One Person company rather than a proprietary firm is ideal.

Simply delivering the resolution from the organisation by the member, having it entered in the minutes book, signed, and dated by the member shall be regarded as the date of the meeting.

A director must certify the annual return of One Person Company. OPC is not subject to the Company Secretary’s required signature obligation.

A One Person Company is only required to hold one board meeting in each half of a calendar year, and there must be a minimum of 90 days between meetings.