About Pvt. Ltd. to Limited company
Convert a private limited company into public limited company: Although private entity is a corporate entity and enjoys the benefit of registered corporate but conversion of a private entity into public concern has its reasons, significance and vary accordingly.
Benefits of converting private company into public company
Public company is the only corporate form which enjoys inflow of public investments by issuing shares to general public.
Public company raises capital from general public and makes itself delicious.
Shareholders investing in public company expect something in return of their investment more like 'give and take' school of thought.
Public limited company enjoys better market recognition and bestows confidence in the stakeholders.
Procedure for Conversion of Private Limited Company into private limited company
● Board Meeting to take director's approval for conversion.
● General Meeting to take member's approval.
● Filing of prescribed forms with ROC.
● Issuance of fresh certificate by ROC.
Requirements for Conversion
There are certain provisions/conditions needs to be fulfilled during conversion of Private Limited To Public Limited. They are as follows:
Adopt new Articles of Association (AOA) and Memorandum of Association (MOA) after conversion.
Minimum share capital of the public company will become Rs. 5, 00,000/-
Minimum number of directors will become 3 in case of public company.
Both the directors of private company will be allotted DIN.
A minimum number of shareholders will be 7 in a case of public company.
Time taken for conversion is 15-20 days, and it also depends on documents provided by applicant and speed of approval by the government.