Company Conversion
What is Company Conversion?
Company conversion is the process of changing the legal structure of a company from one type to another under the Companies Act, 2013.
For example:
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Private Limited → Public Limited
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One Person Company → Private Limited
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Partnership / LLP → Private Limited
This allows a company to adapt its structure to business growth or compliance requirements.
Why Convert a Company?
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Expand business operations and funding options
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Issue shares to the public or raise capital
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Comply with regulatory requirements for larger operations
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Increase credibility with banks, investors, and clients
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Avail benefits under MSME / startup / government schemes
Who Can Apply for Conversion?
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Existing companies incorporated under Companies Act, 2013
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Authorized by Board of Directors and shareholders
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Must meet eligibility requirements of the new structure
Common Types of Conversion
| From | To | Notes |
|---|---|---|
| OPC | Private Limited | When capital or members exceed limits |
| Private Limited | Public Limited | Requires minimum 7 members & Rs. 5 lakh capital |
| Partnership / LLP | Private Limited | Requires approval from RoC and change in MOA/AOA |
| Private Limited | One Person Company | Only if sole member is eligible |
Documents Required
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Board Resolution approving conversion
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Altered MOA / AOA for new structure
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Consent of shareholders
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Form INC-6 / INC-7 (as applicable)
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Copy of PAN & DIN of directors
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Proof of registered office
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NOC from creditors (if required)
Process of Company Conversion
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Board Meeting – Approve proposal for conversion
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Shareholders’ Approval – Pass Special Resolution in General Meeting
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Prepare Altered MOA / AOA – Draft according to new structure
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File Forms with MCA – INC-27 (OPC → Pvt Ltd), INC-7 (Private → Public), etc.
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ROC Verification & Approval – MCA examines application
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Issue Certificate of Incorporation – Updated with new company type
⏱️ Timeline: 15–30 working days (depends on RoC processing)
Key Points
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Conversion is legal and binding only after RoC approval
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Company must comply with new minimum capital & member requirements
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Bank accounts, licenses, and contracts may require updates after conversion
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Some conversions may need approval from other authorities (like SEBI, RBI)
Benefits of Company Conversion
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Access to funding from investors and banks
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Improved corporate credibility
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Compliance with statutory requirements
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Better corporate governance and management flexibility
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Ability to expand business operations
