The Ministry of Corporate Affairs (MCA) vide its notification dated 1st February 2021 has issued the Companies (Incorporation) Second Amendment Rules, 2021 to further amend the Companies (Incorporation) Rules, 2014.
The Companies (Incorporation) Second Amendment Rules, 2021 shall come into force from 1st April 2021.
The amendment substitutes rule 6 which deals with Conversion of One Person Company into a Public company or a Private company.
“A One Person company may be converted into a Private or Public Company, other than a company registered under section 8 of the Act, after increasing the minimum number of members and directors to two or seven members and two or three directors, as the case may be, and maintaining the minimum paid-up capital as per the requirements of the Act for such class of company and by making due compliance of section 18 of the Act for conversion.” official notification said.
Further, the Form INC-6 can now be used for both – conversion from Private/Public to OPC or OPC to Private/Public. For conversion of a non-OPC to OPC, thresholds of Paid up capital Rs 50 lakhs or less and turnover of Rs 2 crores or less is removed. Irrespective of Capital/turnover, non-OPC can get itself converted into OPC. Form INC-5 is omitted.