Last updated: December 17th, 2019 5:39 PM

MCA Form for Conversion to Company

The MCA eForm URC - 1 is required to be filed for the conversion of Partnership Firm or Limited Liability Partnership (LLP) into a Company. MCA eForm URC-1is required to be filed in accordance with Section 366 of the Companies Act, 2013 and Rule 3(2) of the Companies (Authorized to Register) Rules, 2014. In this article, we will look at the MCA eForm URC-1 in detail. Know more about the Register DSC on GST Portal

Laws governing the eForm URC-1

To understand the purpose of filing the eform URC-1, we must understand the act according to which it is required to be filed.

Section 366 of the Companies Act, 2013

Section 366 deals with the business entities capable of being registered under the Companies Act, 2013. According to this section, a co-operative society, LLP, partnership firm, society or any other forms of business organizations may be converted into a company.

Rule 3(2) of the Companies (Authorized to Register) Rules, 2014

According to Rule 3(2) of the Companies (Authorized to Register) Rules, 2014, a company after obtaining availability of name, needs to furnish the required documents and information to the Registrar along with Form No. URC-1 for registering as a company.

Purpose of the eForm

The eForm URC-1 is used for registering an entity as a Part I Company under Companies Act, 2013. The eForm URC-1 will be filed along with eForm INC-7. If the following entities are consisting of seven or more members, eForm URC-1 shall be filed along with eForm INC-7.

• Partnership firm
• Limited liability partnership (LLP)
• Cooperative society
• Society

Applicable Fee

The fee details for the conversion of partnership firm into Company are tabulated here. The eform filing fee rates are provided as per the Companies (Registration of Offices and Fees) Rules, 2014

Sl.No	Nominal Share Capital	Fee Applicable
1	Less than Rs.1,00,000	Rs.200
2	Rs.1,00,000 to Rs.4,99,999	Rs.300
3	Rs.5,00,000 to Rs.24,99,999	Rs.400
4	Rs.25,00,000 to Rs.99,99,999	Rs.500
5	Rs.1,00,00,000 or more	Rs.600

Documents Required

Documents required for the registration of a company limited by shares or company limited by guarantee or as an unlimited company:

• Declaration of directors confirmatory the particulars of all partners
• An affidavit from all the partners for dissolution of the entity
• Newspaper advertisement
• Instrument constituting the entity
• Certificate of registration of the entity
• Documents

Other Documents

Other documents required for the registration of a company is tabulated here:

Sl.No	Type of Entity	Documents Required
1	A company limited by shares or Unlimited Company	Agreement of the majority of members
2	A company limited by guarantee	Agreement of at least three-fourth of members agreeing for registration Resolution declaring the amount of guarantee
3	Firms/ Limited Liability Partnership	No objection certificate from the concerned Registrar of Firms or Registrar of Companies (LLP)

Condition for Filing eForm URC-1

For registering a company, the firm needs to publish a notice in the newspaper, one in English and vernacular language. As stated above, a copy of notice needs to be filed along with the eForm URC-1.

Entity Name Reservation

The entity has to get the name reservation by applying in eForm INC-1 and file this form along with form INC-7 within 60 days from the date of filing eForm INC-1.

Dissolution of Entity

The business entity after registration need to furnish all documents to the registering authority for dissolution as the existing entity under the relevant law

Procedure for Filing of eForm URC-1

The following steps can be used for filing the eForm URC-1on MCA portal.

• The applicant needs to access the official website of Ministry of Corporate Affairs to file eForm URC-1. By login to the portal, the applicant can upload the e-form URC-1.
• After login to the portal, enter the approved SRN of eForm INC-1 filed for reservation of firm name.
• Furnish registration number of the existing entity and select type of entity from the drop-down menu and in case of others selected, specify the entity in the description box.
• Provide the number of members in the entity as on the date of application.
• Furnish the date of the instrument and details through which the existing business entity or joint-stock company has been constituted.
• Furnish the date of the general meeting and details of resolution have been passed by members authorizing company registration with limited liability.
• The applicant needs to furnish details of secured debt outstanding as on the date of application.
• Select any one of the options from the drop-down values for declaration and digitally sign the eForm URC-1.
  • In case the person digitally signing the eForm URC-1 is a Director, approved DIN need to be provided.
  • In case the person digitally signing the eForm URC-1 is Manager, enter approved DIN or valid income-tax PAN.
  • Membership number need to be filed, in case the person digitally signing the eForm URC-1 is Company Secretary
• By clicking on the attach button, the required document can be uploaded and click on the pay the payment button for making fee.
• On successful submission of the eForm URC-1, the eForm will be processed by the office of Registrar of Companies.

SRN Generation

SRN will be generated and displayed to the applicant on successful submission of the eForm URC-1. This SRN will be used for future correspondence with MCA.

Challan Generation

On successful submission, a challan will be generated depicting the details of the fees paid by the user to the Ministry. It is the acknowledgement to the applicant that the eForm URC-1 has been filed. Email When the eForm URC-1 is completely processed by the authority, an acknowledgement will be sent to the official mail of the company