In order to diversify the business on large scale it is better to convert private limited company to Public Limited Company. The main benefit of Public Company is that it is easy to raise funds on a large scale basis without approaching banking system and thereby reducing debts while in case of Private Limited Companies all the reserves are raised through the existing members or shareholders and promoters as it is managed privately. Though the chances of risk increase when a Private company goes public among its shareholders. If Public companies once raise funds through IPO, get an indirect promotion and the support through the stock exchange websites where their stocks are listed.
Legal Window has a team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation and conversion process. You may get in touch with our team on 072407-51000 or email firstname.lastname@example.org for Conversation of Private Limited company to Public Limited Company.
Advantages of Conversion of Pvt Ltd. Company to Public Ltd. Company
Minimum three persons as Director and maximum fifteen
Minimum seven persons as Members
Minimum one Director shall be Indian resident
Digital Signatures of any one Director
No Minimum Capital requirement
DIN for all the directors
Documents Required for Conversion
Process of Conversion of Pvt Ltd. Company to Public Ltd. Company
1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.
2. Document Processing
At the second step we will be drafting the documents as required to conduct the Board Meetings and General Meetings in accordance with the questionnaire filled by you. The documents will be sent to you for signing.
3. Filing of Forms
After the conduct of the meetings, minutes of the meeting will be drafted and relevant forms MGT-14 and INC-27 will be filed with Ministry of Corporate Affairs.
4. Get Certificate of Incorporation
Once the Registrar approves the conversion, it will issue a Fresh Certificate of Incorporation.
FAQs on Private Limited to Public Limited Company Conversion
Minimum three Directors and Seven Members agreeing to subscribe the shares of the Company.
Yes, the above person can become a Director post obtaining Director Identification Number. However, one Director should be Indian Resident.
Yes, for Indian nationals becoming a Director in a Company it is mandatory to have a PAN Card and Passport in case of Foreign Nationals.
It is the documentary proof evidencing that the Company has been registered and having its unique identification number as Corporate Identification Number.
During every financial year, the company must hold at least 4 board meetings (one in each quarter) and one Annual General Meeting (AGM) and EOGM if required. Further, the company has to get the financial statements audited by an independent auditor. Subsequently, it shall file forms like AOC – 4 and MGT – 7 , MGT-14 and other forms as applicable as part of Annual Compliance within given time.
The forms that are required to be filed are MGT-14 and INC-27 with Registrar of Companies.
Yes, a Director can also become a shareholder and vice versa as a Company is a Separate Legal Entity.
There is absolutely no minimum capital required but generally people prefer and are advised to incorporate the same with a minimum capital of Rs. 5 Lacs.
As per Companies Act, 2013 it is compulsory to have an individual as an Auditor of a Company. The first Auditor shall be appointed within 30 days from the date of Incorporation by the Board of Directors.
Yes, a Public Company can carry multiple related business activities if it is mentioned in the company’s objects and been approved by the registrar. You can not operate entirely different activities like construction and food company under one name.
You can only transfer the shares by complying with the regulations of Companies Act, 2013 and it is necessary for the public company to get the shares dematerialised with NSDL/CDSL before transferring the shares or before inducing the capital in the company.