No,an OPC (One Person Company) cannot be directly converted into a Section 8 Company as per the Companies Act, 2013.
📜 Legal Explanation – Companies Act, 2013
🔹 Section 8 Company
Section 8 of the Companies Act, 2013 permits the formation of a company with charitable or not-for-profit objectives.
These companies must have at least two directors and two members (if private) or seven members (if public).
Therefore, an OPC (which by definition has only one member) does not satisfy the eligibility criteria for a Section 8 company.
🔹 Rule 3 of Companies (Incorporation) Rules, 2014
It specifically prohibits an OPC from being incorporated or converted into a company under Section 8.
🔹 Clarification:
OPC cannot be incorporated or converted into a Section 8 Company.
🔁 What You Can Do Instead:
If the sole member of an OPC wants to start a Section 8 Company, they must:
Incorporate a new Section 8 Company as a private or public company with the required number of members and directors.
Close the OPC (if needed), or run both entities separately.
Alternatively:
Step 1: Convert OPC to a Private Limited Company (not Section 8)
Step 2: Then apply for conversion to a Section 8 Company (if allowed by law, which still typically requires a fresh incorporation under Section 8 with a license from the Central Government).
✅ Conclusion:
As per the Companies Act, 2013 and relevant rules, an OPC CANNOT be converted into a Section 8 Company.
If you’re planning to start a nonprofit, it’s best to form a new Section 8 Company with at least 2 directors and apply for a license under Section 8.
