A Private Limited company can convert itself to a One Person Company if it satisfies few conditions. A private limited company, if it's paid up share capital is upto 50 lakh and its turnover doesn't exceed 2 crores it can convert itself to One Person Company.
1. Decision making becomes easy as there is only one person to make a decision. This makes decision-making process really fast and time is utilized in other productive assignments.
2. ROC and annual compliances are very less for One person company.
3. Work related to annual filing, share certificate etc. are reduced for One Person Company.
4. One person company doesn't need to hold an annual general meeting and doesn't need to comply with many other legal requirements which are mandatory for Private Limited Company.