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
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.
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.
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.