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Conversion of Private to Public Company

Turning a private company into a public company opens up a world of opportunities, especially in terms of capital and market reach. The company can collect deposits and raise funds through a public offering. Government approval and update MOA and AOA will follow the conversion. This structure is appropriate for medium and big businesses. A public company has seven or more members with three directors and can issue shares to the general public. A public company's subsidiary company is considered a public company.

Documents Required

  • A certified copy of the financial statement.
  • A copy of the firm's ITR.
  • Passport Size Photograph.
  • PAN Card.
  • ID Proof (anyone).
  • Aadhar Card/Voter ID /Driving License /Passport.
  • Address Proof.
  • Bank Statement/Electricity Bill /Telephone Bill / Mobile Bill.

•

Documents for Registered Office Address

  • If Property Owned by Directors /Shareholder.
  • Sale Deed of Property.
  • NOC from the owner (format given by our company).

If you've rented a property, you'll need a letter of authorization from the owner (format given by our company)

  • Rent Agreement.
  • NOC from the Owner (format given by our company).

Advantages

Public Issue

They are raising funds through a public share issue. It can attract investors mainly for traded on a well-known stock exchange. A public limited corporation can raise substantially more capital than a private limited company.

Brand Image

When a private limited company becomes public, it gets listed on the stock exchange, implying it shares available to the general public. People are aware of it and its functions. As a result, enhanced brand recognition will result in growth.

Liability is limited

With this conversion, this property is preserved. Each shareholder or member's liability is limited. Their liability is limited to the value of the stock they possess. The private or personal assets of shareholders or members are not at risk.

Shares are transferable

Shares in a public limited corporation are freely transferable, unlike those in a private limited company. Shareholders can easily sell their shares. This encourages people to invest because they are not obligated to stay with the company indefinitely.

Basic Conversion Requirements

  • Minimum 7 Shareholders and 3 Director.
  • DSC and DIN is required for all directors.
  • A minimum of Rs 5 lacs in authorized share capital is required.
  • A minimum paid-up share capital of Rs.5 lakhs is required.

FAQ's

There is no minimum time limit outlined in the Act, so if our management desires, they can convert their private company to a public company at any time.

Yes, the "Private Limited" suffix will be replaced with "Limited."

A public limited company's shareholders are its director.

The board of directors manages the company's business.

In a public limited company , there are 3 minimum directors required.