Description
Compulsory Conversion:
When an OPC has paid up share capital that exceeds Rs. 50 lakhs and the annual turnover is above Rs. 2 crores, then it is obligatory for them to convert into a private limited company. During the conversion, the members have to just pass a special resolution in the general meeting.
Though, if the paid-up share capital exceeds rupees 50 lakhs or if its average turnovers exceed INR 2 crores then within two months, the OPC could convert into a private limited company. OPC has to communicate voluntary conversion to a registrar of companies in form INC 5 within sixty days.
What is compulsory for private limited company?
For a private limited company, it is mandatory to hold an annual general meeting once a year. Companies are required to keep their AGM within six months from closing the Financial year. Director’s report. Preparation of the Directors report will be done with all the information required under Section 134
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