Convert Private Limited to Public Limited Company in India

A private limited company or famously known as LTD is a privately held company. This implies that the business limits owner liability to its shares and limits number of shareholders to 50. It also restricts shareholders from trading shares publicly.

A Public Limited Company, legally known as PLC, is a publicly held company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed in the stock exchanges. PLC requires a minimum of 3 Directors as a prerequisite.

Advantages of Public Limited Company

• There is no restriction in the transferability of shares as it is open to public.
• The scope for a PLC is vast in comparison to limited number of people for a Private Limited Company.
• Capital for PLC can be raised from the general public, giving it more opportunity for growth and success.
• Systemized functioning will help in building the business and good team work

Eligibility Criteria to covert a Private Limited to Public Limited Company in India

Before you’re allowed to convert your private limited company into public limited company, you must fit the following criteria

·         You should have at least 7 members

·         You should have at least 3 directors

·         Your minimum capital should be INR 5,00,000/-.

·         You must have the consent of the board members, and your financial and operational creditors before you can go through with this conversion.

Documents Required for converting a Private Limited to Public Limited Company in India

• E-form MGT 14 – Special resolution for conversion of the company into a public company is to be filed with the following attachments:
• Certified true copy of special resolution
• Altered memorandum and articles of association (MOA/AOA)
• Certified true copy of board resolution is optional
• Notice of Extra Ordinary General Meeting (EGM) that is held to pass the board resolution which is the approval of Directors for conversion of a Private Limited Company to Public Limited Company
• E-from INC 27 – Application for the conversion of Private Limited to Public Limited
• Minutes of the Meeting where approval was given for conversion and altered Articles of Association
• Altered Articles of Association
• True copy of Board resolution is optional

Process for converting Private Limited to Public Limited Company in India

The process to convert a Private Limited to Public Limited Company is as follows:

·         Call a board meeting and pass a resolution after mutual agreement to convert your private limited company into a private limited company (LTD to PLC)

·         Call an extra-ordinary general meeting inviting your shareholders. Pass a special resolution with their approval to go through the aforementioned conversion.

·         Pass the resolution to increase the number of directors from two to three (if applicable)

·         Do an ROC filing to make alterations to Articles of Association

·         File Form INR 27 to convert the private limited company to public limited company.

·         Alongside INR 27, attach the certificate of incorporation of your private limited company when filing the application. It will prompt the registrar to initiate the conversion process.

Our Assistance to convert your Private Limited to Public Limited Company in India

We, at Registrationwala provide end to end solutions for conversion from Private Limited to Public Limited Company. Our services include:

·         Making changes to the Articles of Association of your company

·         Filling the Form INR 47

·         Reviewing the application and making changes if needed

·         Submitting the FORM to the Registrar of Companies.

·         Obtaining Certificate of Incorporation of the public limited company.

Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to private limited to public limited company conversion.

So, take your first steps towards this conversion and reach out to us.