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Conversion of Private Limited to Public Limited Company

Your company may have started out small but, with careful planning and hard work, you have taken it to the next level. Today, the company is well-respected and well-known, and the time has come to take it public.

Conversion of Private Company into a Public Company opens a new door of opportunities, especially in the form of fundraising and reach of the market. The company can raise funds through Public Issue.

A private limited company may convert itself to Public limited company by Altering its Memorandum and Article of Association. Memorandum and Article of Association can be altered by getting Shareholders’ approval by passing Special Resolution in General Meeting.

Key Requirements

  • Minimum Authorised Share Capital shall be Rs. 500,000 (INR Five Lac)
  • Minimum 7 Shareholders
  • Minimum 3 Directors
  • The directors and shareholders can be same person
  • If the above requirements are not fulfilled by the Private Company, then the relevant alterations / changes to be made before conversion
  • DIN (Director Identification Number) for all the Directors
  • DSC (Digital Signature Certificate) for one of the Directors

Advantages of Public Limited Company over Private limited

Documents Required

2 Sets of Documents are required for Company Incorporation

1st Set (All Directors):-

Pan card

ID Proof – Driving License/ Voter’s ID/ Passport copy

Address Proof – Bank Statement/ Telephone Bill/ Mobile Bill/ Electricity Bill (Latest Month)

2nd Set for Office Registration.

Rent Agreement ( In stamp paper)/Lease deed/ Sale deed(if owned)

Latest Electricity Bill ( Less than 30 days)

No Objection Certificate from the owner of the Premises

Procedure for Registration

  • Calling of Board Meeting

  • Issue of EGM Notice

  • Holding of Extra Ordinary General Meeting

  • ROC Form filing

  • E-form MGT.14

  • Application for conversion of a private company into a public company

  • Scrutiny of Documents by ROC

  • Fresh certificate of incorporation

Post conversion formalities

After conversion of Private Company into a Public Company kindly take care of the following points:

  1. Intimate all the concerned authorities like Excise and sales tax etc. about the status change.
  2. Arrange new PAN No. of the company. Update company bank account details.
  3. Arrange new stationary with new name of the Company.
  4. Analyze your newly adopted AOA and MOA and remove all things which are in contradiction with the conditions of AOA.

Working Process

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Low Price

No Office Visit

No Hidden Cost

Charges After Work Completion

Frequently Asked Question

Yes, you need a minimum of 3 Directors for a Public Limited Company. If you are sole owner, you can register as a One Person Company.

Any individual/organization can become the member of the Public Limited Company including foreigners/NRI.

The suffix “Private Limited” will be replaced with “Limited.” For this change, the company has to seek permission from the shareholders and after that make the required changes in the MoA to get it amended.

Once the name approval letter is received from the ROC, the MoA and AoA are required to be drafted. The name clause and capital clause are altered along with the removal of restriction to Private Company as provided by definition.

The company can start its business operations as a Public Company on receipt of the fresh Certificate of Incorporation from RoC.

LegalSahayata can help you convert your Private limited into a Public Limited Company within 20-25 working days. The time taken for conversion will depend on the submission of relevant documents by the client and speed of Government Approvals. To ensure speedy conversion, one should ensure that all the required documents are submitted.

Since the Public limited company deals with the public’s money, it requires taking measures which increase the statutory compliance on its part. The regulatory liabilities are not restricted to the income tax but with ROC/MCA, SEBI, RBI, etc. It is important to take extra measures as the stakes are pretty high than any other company.

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