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Convert Private Limited Company to Public Limited Company


Private Limited Company to Public Limited Company

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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

Frequently Asked Question

Will the change of name of company have any affect?
The change of name on conversion will not affect any rights or obligations of the company and any legal proceedings by or against the company, which was commenced in its former name, can be continued under its new name.
What are the legal formalities after the conversion takes place?

The following main points must be taken care of after the Private Limited is converted to Public Limited:

  • New PAN card in the name of the company
  • Update bank details
  • Raise the capital to minimum 5 lakhs, if it is lesser than that
  • Increase number of Directors to minimum 3

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