Overview of Conversion of Pvt Ltd Company to Public Limited Company

To diversify the business on a large scale it is better for Conversion of Pvt Ltd Company to Public Limited Company. Private Ltd companies offer so much by themselves, but at some stage, each private limited company wants to enlarge their scalability and turn into a public limited company. The question usually posed is, “Why go to public?” The answer depends on a distinct difference that occurs between Pvt company to public company which also offers the concept of Initial Public Offering and shares to the general public.

The main benefits of converting private company to public company is that it is easy to raise funds on a large scale without approaching the banking system and thereby reducing debts while in the case of Private Ltd Companies all the reserves are raised through the existing shareholders, members, and promoters as it is managed privately. When a Private company goes public among its shareholders, it increases the chances of risk. If Public companies once raise funds through Initial Public Offering (IPO), get the support through the stock exchange websites where stocks are listed.

Team Corporate Expert Advisor has a team of professionals providing you timely delivery, the best assistance, and the highest customer satisfaction in the Company conversion and formation process. Consequently, flexibility and growth are preferably the reasons for the change from private to public.

Key Insights on Conversion of Pvt Ltd Company to Public Limited Company

• Convert private company to public company by altering the memorandum of association and articles of association and by passing a special resolution by the company in the EGM.
• The name of the company will be amended and the word “Private” will be excluded.
• The company needs to maintain the minimum criteria of 7 members and 3 directors.
• The company should not have defaulted in repayment of debentures or matured deposits or Financial Statements and filing of Annual Returns.
• After the process of conversion of private company into public company, the new name of the company shall be printed on all the stationaries, outside the office, and inform all the authorities such as Banks, Utility Service Providers, Income Tax Departments, and any other authorities.

Documents required for Conversion of A Company

• PAN Card of Directors and shareholders.
• Foreign nationals must provide a valid passport.
• Driving License/ Voter ID/ Passport of Directors and Shareholders
• Address Proof: Electricity Bill/ Latest Bank Account Statement of Directors and Shareholders
• Passport-size photo of Directors and Shareholders
• No Objection Certificate is to be collected from the owner of the certified office
• Rent Lease-Agreement of the certified office (if any).
• ITR filed for the previous year to be submitted
• Documents of the director should be notarized in case of Foreign National or NRI
• Declaration of Incorporation, AoA, and MoA to be offered

Process of Conversion of Private Company into Public Company?

Procedure to convert private company to public company. Company in under applicable provisions of the Companies Act, 2013 and the Companies Rules, are given below in a short for your understanding:

Issuance Notice For Calling Board Meeting

For conducting Board Meeting of Directors, agenda to be circulated and notice to be issued along with. The agenda shall be:-

• Fix time, date, and venue for conducting of Shareholder’s meeting
• Pass Board Resolution for conversion of a company
• Approve the Notice of EGM and authorization to Company Director/Secretary for issuance of the Notice

Discussing Agenda Items- Holding Of Board Meeting

• To approve the Conversion of Pvt Ltd Company to Public Limited Company subject to the approval of shareholders.
• To adopt a new set of MOA and AOA subject to the approval of shareholders.
• Fix the date, venue, and time for holding the general meeting

Issuance Of Notice For General Meeting

• At least 21 days’ notice before the meeting of members
• If consent is given by electronic mode or in writing, a general meeting may be called after giving short notice.
• The notice period may be pursued as specified in the Articles.

Conduct The General Meeting

• For passing the special resolution of company conversion.
• For adoption of amended Memorandum of Association & Articles of Association.

File Form MGT- 14

The form MGT- 14 is to be filed within 30 days of passing the special resolution

• Attachments to Form MGT-14
• Notice of EGM along with the Explanatory Statement
• Certified copy of the special resolution passed in EGM
• AOA & MOA Amended
• Consent of shorter notice, If an extraordinary general meeting (EGM) is held at shorter notice.

File Form INC – 27

Convert private company to public company Form INC- 27 is to be filed within 15 days of passing a special resolution.

• Attachments to Form INC-27
• A certified copy of the resolution passed in EGM
• AOA and MOA Amended
• Consent of shorter notice, if EGM is held at shorter notice.

Getting Approval Of MGT-14 and INC-27

The forms shall be approved by the Registrar of companies if the registrar is satisfied that the Private Company has adhered to the prescribed requirements of conversion.

Certificate Of Incorporation From ROC

ROC will issue a fresh Certificate of Incorporation of Pvt Ltd Company to Public Limited Company, once the registrar has approved the forms MGT 14, INC 27, and shall cancel former registration of Company.

Why Choose Team Corporate Expert Advisor?

Team Corporate Expert Advisor is one of the platforms which coordinate to fulfill all your financial and legal requirements and connect you with consistent professionals. The benefits of converting a private company to public company is that it increases the reputation of the company. Our clients are pleased with our legal or conversion service! Our clients can also track the progress on our platform at all times. If you have any queries about the process of conversion of a private company into a public company, our representatives are just a phone call away. Team Corporate Expert Advisor ensures that your communication with professionals is seamless and charming.

• Purchase a Plan for Expert Assistance
• Provide Documents to Team Corporate Expert Advisor expert
• Add Queries Regarding Conversion of Pvt Ltd Company to Public Limited Company
• Complete all Admissibility Criteria for Preliminary Screening + Prepare Application for converting private company to a public company.
• End-to-end Procedural Actions
• Get your Conversion Certificate of Incorporation at your Doorstep!