Overview of Conversion of Private Company to Public Company
Private entity is a corporate entity and enjoys the benefit of registered corporate but conversion of a private entity into public concern has its reasons, significance and vary accordingly. Conversion of private limited company to public limited company is beneficial as it brings with it larger capital inflow. First you need to alter the articles of association, then delete the word private from your name, commence the registration process and finally wait for the certificate of commencement of business. A Public Company has seven or more members and can invite public to subscribe to its shares. A subsidiary company of a Public company is deemed to be a Public company.Advantages of Public Limited Company
1. Public limited company can raise capital from the general public through shares. All public limited companies can issue fixed deposits, debentures, convertible debentures to the general public. 2. Public limited company enjoys better market recognition and bestows confidence in the stakeholders. 3. Public company is the only corporate form which enjoys inflow of public investments by issuing shares to general public. 4. Public limited companies need to disclose their audited statement of accounts, inform the regulatory bodies of any structural change and hold annual general body meetings for all shareholders.Document Needs for Conversion to Public Company
• Copy of PAN Card of Directors • Passport size photograph of Directors • Copy of Aadhaar Card/ Voter identity card • Copy of Rent agreement(If rented property) • Electricity/ Water bill (Business Place) • Copy of Property papers (If owned property) • Landlord NOC (Format will be provided)Mandatory Compliance of Conversion to Public Company
• DSC for 1 Director • Minimum 7 Shareholders • DIN for all directors • Minimum Authorized Share Capital of Rs 5lacs • Minimum Paid up Share Capital of Rs.5lacs • Director and shareholder can be the same person • Minimum 3 DirectorsBasic
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12999/-
₹
12999/-