New Delhi, June 13, 2025 – Corpzo, a trusted name in legal and corporate compliance consulting, has issued an important advisory for entrepreneurs and small business owners operating as One Person Companies (OPCs). The firm warns that delaying the mandatory conversion of OPCs to Private Limited Companies (Pvt Ltd)—once specific thresholds are crossed—could expose promoters to significant legal and regulatory risks.

Under the Companies Act, 2013, an OPC is required to convert into a Pvt Ltd company when its paid-up capital exceeds ₹50 lakh or its annual turnover surpasses ₹2 crore. Non-compliance may result in penalties, disqualification of directors, and difficulty in accessing credit or investment.

“Many startup founders overlook the legal obligations that come with business growth,” said Richa Mehta, Corporate Legal Advisor at Corpzo. “Failing to convert an OPC within the prescribed timelines may not only result in fines but also raise red flags with regulatory authorities and investors.”

Corpzo highlights that converting to a Pvt Ltd structure offers multiple benefits, including better funding opportunities, enhanced credibility, limited liability protection, and ease in attracting partners or co-founders. Moreover, a Pvt Ltd company enjoys greater flexibility in corporate governance and scalability.

To assist businesses in this transition, Corpzo offers end-to-end support—from eligibility assessment and documentation to ROC filing and legal restructuring.

Entrepreneurs are urged to take proactive steps to comply with the law and safeguard their ventures from avoidable legal complications.

About Corpzo:
Corpzo is a leading advisory firm specializing in legal compliance, business structuring, and corporate law solutions for startups, SMEs, and enterprises across India.

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