Private Limited to Public Limited

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CONVERSION OF PRIVATE LIMITED TO PUBLIC LIMITED COMPANY

Under Erstwhile Companies Act, 1956, there were 2 methods for Conversion of Private Company into Public Company which are as follows: 

  • Conversion by Default under Section 43 of CA 1956 where if a Private Company made a default in complying with basic conditions prescribed in section 3(1)(iii) related to definition of a Private Company, the company shall cease to be entitled to the privileges and exemptions conferred on private companies by or under CA 1956, and the Act shall apply to the company as if it were not a private company.
  •  Conversion by Act of volition under Section 44 of CA 1956, where a private company voluntarily converts itself into a Public company.
  1. Alteration of Articles
  2. Adoption of New Set of Articles for Public Company
  3. Conversion of Companies already registered [Section-18]

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Documents Required for Conversion

  1. PAN Card of Directors
  2. Passport Size Photograph of Directors
  3. AAdhar Card / Voter Identity Card
  4. Rent Agreement/ NOC (If Rented Property )
  5. Water Bill / Electricity Bill (Place of Business)

Yes, you need a minimum of 3 Directors for a Public Limited Company. 

Any individual/organization can become the member of the Public Limited Company including foreigners/NRI.

 

Advantages

  1. Raising capital through public issue of shares

  2. Widening the shareholder base and spreading risk

  3. Growth and expansion opportunities

  4. Other finance opportunities

  5. Transferability of shares

Minimum Requirement

  1. DSC for 1 Director
  2. Minimum 7 shareholder
  3. DIN of all directors
  4. Minimum authorized capital of 5 Lacs
  5. Minimum 3 Directors

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