Add Your Heading Text HereOverview of Pvt. Ltd. to Public Ltd Company Conversion

To some extent, a private limited company provides a lot of benefits and facilitates in its operations. However, private limited companies may wish to turn it into a public limited company to enhance its scalability. The distinct difference between a public limited company and a private limited company is that a public limited company can offer Initial Public Offering (IPO), and shares to the general public.

If a private limited company wants to raise funds from the public by increasing its members, it needs to go public. Hence, a public limited company is a must when you want to increase funds for the expansion of the company. Hence, the growth and flexibility of a company are the reasons for converting a private limited company to a public limited company. 

If you want to convert your private limited company to a public limited company, contact Online Legal India and get it done easily and swiftly by expert CA/CS.

Compliance to convert Pvt. Ltd. to a Public Limited Company

A private limited company has to comply with the following requirements to convert it to a public limited company. They are:

• Alternation of AoA of the public limited company according to Section 14 of the Companies Act, 2013 by passing a special board resolution.
• Altering its name is mandatory as it was a private limited company and now you have to add a suffix with “Limited” Company as per section 13 of the Companies Act 2013 by passing a special resolution.
• If the member of the existing company is below 7, it must be made at least 7, and the number of directors must be at least 3.
• The private limited company will turn to a public limited company under section 14 of the Companies Act, 2013 from the date of passing the special board Resolution by deleting private limited, and the Register of Companies (ROC will issue a fresh incorporation certificate.

What are the Benefits of Converting Pvt. Ltd. to aPublic Ltd Company?

Share Transfer Facility to the Public

The shareholders of a public limited company can transfer their shares to another party very easily and smoothly. They only need to fill out the share transfer form and hand over the share transfer certificate to the buyers.

Facility to Raise Capital

The main and fundamental benefit of a public limited company is selling shares and raising funds for spreading and expanding the company and its project or new branches. However, to avail of the facility, the companies must enlist their names to the stock exchange. All public limited companies have the facility to issue fixed deposits, debentures, and convertible debentures to the public.

Greater Reliability

Public limited companies have to inform all structural changes and disclose the audit report of accounts to the annual general meeting. This compliance brings immense reliability to the public limited company. This also grabs the attention of people and spreads brand identity.

Limited Liability

The liability of a private limited company converts to a public limited company. So, as per the rule, the liability will also be modified.

Free Share Transfer Facility

The shares of a public limited company can easily and freely be transferred to another person/ share buyer by following the SEBI Act and Companies Act 2013.

Easy Acceptance of Deposits

According to the rules of section 76 of the Companies Act 2013, a Public Limited Company can accept fund deposits from the public.

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The Required Documents for Converting a Pvt. Ltd toPublic Ltd Company 

• 1. PAN Cards of Directors and Shareholders
• 2. A valid passport is proof for foreign nationals
• 3. Passport/ Driving License/ Voter ID of Directors and shareholders
• 4. Address proof of all the directors or shareholders (Telephone Bill, electricity bill, Latest Bank Account Address, etc.)
• 5. Latest passport size Photo of all shareholders and directors
• 6. Business address proof: electricity bill, telephone bill, rent agreement of the certified office of the company
• 7. No objection certificate from the landlord, if it is a rented office
• 8. Income tax Return filling document for the previous financial year
• 9. Documents of directors must be notarized if it is a matter of Foreign National or NRIs
• 10. The attested copy of the latest audited Financial Statement of the company
• 11. Declaration of incorporation, MoA, and AoA must be submitted