OPC to Partnership

Conversion of OPC into Partnership and vice- versa in not possible as per the law, either go for winding up or transfer the assets and liabilities of the company.

Can a One Person Company convert into Partnership?

Conversion of One Person Company into partnership is not possible. No provision is specified in the Companies Act, 2013 for the conversion of OPC into partnership and vice-versa.

By the following two ways:

  • Either you can go for the winding up of the company
  • Or you can transfer the assets and liabilities of the company to the firm and dissolve the company through the prescribed process given under the Companies Act, 2013

Advantages of OPC over Partnership firm

The entire world is gradually drifting towards the global market without trade barriers. An unregistered traditional partnership firm cannot think of a growth. Corporatisation has advantages of limited liability, uninterrupted existence etc. over the old partnership firm.

  • Only one member can form the OPC
  • Member has the protection of limited liability
  • Unlike in partnership, OPC has perpetual  succession
  • OPC, a  registered form of business entity has validation in court
  • Lesser compliance burden even of a registered company.

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