Convert Private Company into Public Company

Convert Private Limited Company to Public Limited Company

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 (Heading)

• 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

Documents required to convert Private Limited to Public Limited (Heading)

• 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