Rule 7 Conversion of private company into One Person Company
- Text as on
- 14 August 2026
7. Conversion of private company into One Person Company.- (1) A private company other than a company registered under section 8 of the ActDefined in rule 2(a): Act means the Companies Act, 2013 (18 of 2013) is two crore rupees or less may convert itself into one person company by passing a special resolution in the general meeting.
(2) Before passing such resolution, the company shall obtain No objection in writing from members and creditors. (3) The one person company shall file copy of the special resolution with the Registrar of Companies within thirty days from the date of passing such resolution in FormDefined in rule 2(c): Form or e Form means a form in the electronic form or non electronic form as specified under the Act or Rules made there under and notified by the Central Government under the Act No. MGT.14.
(4) The company shall file an application in e-FormDefined in rule 2(c): Form or e Form means a form in the electronic form or non electronic form as specified under the Act or Rules made there under and notified by the Central Government under the Act No. INC-6 for its conversion into One Person Company alongwith feesDefined in rule 2(d): Fees means fees as specified in the Companies (Registration offices and fees) Rules, 2014 as provided in the Companies (Registration Offices and FeesDefined in rule 2(d): Fees means fees as specified in the Companies (Registration offices and fees) Rules, 2014) Rules, 2014 by attaching the following details or documents, namely :-
(i) altered e-MOA and e-AOA;
(ii) copy of NOC of every creditors with the application for conversion;
(iii) affidavit of directors confirming that all the members of the company have given their consent for conversion.
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(5) On being satisfied that the requirements stated herein have been complied with, the Registrar after examining the latest audited financial statement shall approve the formDefined in rule 2(c): Form or e Form means a form in the electronic form or non electronic form as specified under the Act or Rules made there under and notified by the Central Government under the Act and issue certificate.
7A. Penalty If a One Person Company or any officer of such company contravenes any of the provisions of these rules, the One Person Company or any officer of the such Company shall be punishable with fine which may extend to five thousand rupees and with a further fine which may extend to five hundred rupees for every day after the first offence during which such contravention continues