Private Limited Company:

A private limited company, or LTD, is a type of privately held small business entity, in which owner liability is limited to their shares, the firm is limited to having 50 or fewer shareholders, and shares are prohibited from being publicly traded. A company becomes an independent legal structure when it incorporates. The Minimum two members and directors are the main requirements for registering a Private Ltd Co. in India.

Public Limited Company:

Public limited company in India is a voluntary association of members which has a separate legal existence and the liability of whose members is limited. A Public Limited Company can either be an unlisted company or listed Company on the Stock Exchange. Public Limited company also enjoys wide options to raise funds through bank loans, general public and institutional investors.

Conversion of Private Limited company to Public Limited Company:

A public limited company has many advantages over private limited companies and the ability to have any number of members, ease in transfer of shareholding and more transparency makes it popular amongst foreign investors. If you are planning to raise funds from public through Initial Public Offer (IPO) then start your business by incorporating Public Limited Company.

Prerequisites for Conversion of Private Limited Company to Public Limited Company:

There are specific rules to be followed when the Conversion of Private Company to Public Company is done. The key points of consideration are as follows:

• The members of the Company should approve for the Conversion of Private Company to Public Company.
• Name clause in the Memorandum of Association (MoA) should be amended to exclude the word Private.
• The number of members of the Company is 7 before the Conversion of the Company as prescribed under Section 3(1) of the Companies Act, 2013.
• The number of the director to be increased to 3 as prescribed under Section 149(1) of Companies Act, 2013.
• The Company should file all the annual returns or financial statements due for filing with the Registrar of Companies (RoC).
• The Company should pay all the matured deposits as prescribed under Rule 29(1) of Companies (Incorporation) Rules, 2014.
• An application should be made to modify Permanent Account Number (PAN) of Company.
• Provide information to the Central government, where the Company is registered.
• Articles of Association (AoA) should be altered so that they no longer include the restrictions and limitations of a Private Company.
• The Central Government should also approve the Conversion

Why Ebizfiling as your service Provider for the conversion of Private Limited Company to Public Limited Company?

EbizFiling.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory and management consultancy services to clients in India and abroad. Incorporating a Public Limited Company is easy, seamless, cheapest and quickest with EbizFiling.com! Apart from a Public Limited Company, EbizFiling.com also helps entrepreneurs with Private Limited Company Registration, Nidhi Company Registration, Partnership Registration, HUF, LLP Incorporation and One Person Company registration easily. You may get in touch with us for free advisory on all the services.