Convert Private Limited Company to Public Limited Company

Go public and influx large funds by inviting investors

Know about Conversion of a Private Limited Company into Public Limited Company

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 and accept deposits too. This structure is appropriate for the medium and large scale businesses. The conversion will be followed by the approval from Government and alteration to MoA & AoA.

Further, a minimum of 7 members and 3 directors are required for conversion of Pvt Ltd to Public Ltd. The rights, liabilities, powers, and obligations remain the same for the company even after the conversion. Transfer of shares is possible as the restriction on transfer is removed on conversion.

Benefits of Conversion of Private Limited into Public Limited

Brand Awareness
When the company goes public, it gets listed in the stock exchange and hence automatically more people get to know about and its functions, hence the increased brand recognition will bring more business.
Limited liability
The liability of each shareholder or member is limited. This characteristic remains intact with this conversion. Their liability is limited to the extent of their shareholding. The individual or personal assets of shareholders or members are not at risk.
Raising capital through public issue of shares
The ability to raise shares is the most beneficial factor of a public limited company. Especially, if it is listed on a recognized stock exchange market, it has the ability to attract investors from hedge funds, mutual funds etc. The amount of capital that can be raised is much greater than a private limited company.
Transferability of shares
Shares in a public limited company are easily transferable as compared to the private limited company. The shareholders can sell the shares and benefit from its liquidity. This acts as an incentive for people to invest as they are not bound to remain with the company forever.

Documents Required for Conversion of Private Company to Public Company

Identity Proof
Voter ID/ Passport/ Driving License of Shareholders and Directors
Address Proof
Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors
Business Address Proof
Electricity Bill/ Telephone Bill of the registered office address
Incorporation documents
Certificate of Incorporation, MoA & AoA to be provided
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided, if any
Income Tax Return
ITR filed for the previous financial year to be submitted
PAN Card
PAN Card of shareholders and Directors.
Foreign nationals must provide a valid a passport.
Photograph
Latest Passport size photograph of Shareholders and Directors
Financial Statements
Duly certified copy of latest audited Financial Statements
Note
In case of NRI or Foreign National, documents of director(s) must be notarized or apostilled

Need assistance? Don’t worry, experts are here to help!
Call us at: +91 9729-443-137 or Email us: info@gameoftaxes.in

Convert Private limited to Public Company in 3 Easy Steps

  • Fill in our questionnaires that take less than 10 minutes
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways
  • Assigning a dedicated Relationship Manager
  • Procurement of Digital Signatures (DSC)
  • Alteration of MoA & AoA
  • Documents drafting including incorporation documents
  • Certificate of Incorporation
  • Application for change in PAN & TAN

All it takes is 20-25 working days*

*Subject to Government Processing Time

Process of conversion into Public Company

  • Consultancy and assistance for conversion
  • Collection of basic information & documents
  • Application of DSC of new director
  • Drafting of necessary resolutions
  • Drafting of other required documents & affidavit
  • Alteration of MoA & AoA
  • Provide documents required drafted after signature
  • Online filing of form for alteration of MoA & AoA
  • Government processing time to approve the application
  • Online filing of form applicable for conversion
  • Government processing time to approve the application*
Explore Private to Public company conversion

Frequently Asked Questions

Whether a fresh GST registration is required for the Public Limited Company?
No. As the company’s PAN details remain same, there is no need of new registration. However, application of modification must be made for name change in records. LegalWiz.in can help you apply for modification at an additional cost.
How long does it take to convert a Private Limited into a Public Limited Company?
Legalwiz.in 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.
When can a company start its business operations as a Public Company?
The company can start its business operations as a Public Company on receipt of the fresh Certificate of Incorporation from RoC.
How to alter MoA & AoA of the company?
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.
What are the liabilities of a Public Limited Company?
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.
Whether change of name is required for conversion?
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.
What is the primary requirement for setting up a Public Limited Company in India?
The primary requirement to incorporate a public limited company is that it requires minimum 7 shareholders and 3 directors. The minimum Authorised Capital of the company is prescribed to ₹ 5 Lakhs instead of ₹ 1 Lakh in case of Private Company.

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Call us at: +91 9729-443-137 or Email us: info@gameoftaxes.in

CONVERT PRIVATE LIMITED COMPANY TO PUBLIC LIMITED COMPANY

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