Home / Private Limited Company to Public Limited Company

Updated on 16 May 2022    9.00 AM IST | 4 min read

Public Limited Company Definition

A public company has 7 or more members and enjoys the benefit of raising capital by inviting general public to subscribe to its shares whereas private company limits number of members to 200 and cannot invite general public to subscribe to its shares.

A public company enjoys many benefits as compared to private limited company such as raising reserves at a large scale, reducing debt etc. In case of private limited company, all reserves are raised by the existing members, shareholders and promoters and risk is also shared between the shareholders.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Minimum Requirements For Converting Private Limited Company Into A Public Limited Company

  • Minimum 3 directors
  • Minimum 7 shareholders
  • DSC of 1 director
  • DIN of all directors
  • Minimum authorized share capital of Rs.5 Lakhs
  • Minimum paid up share capital of Rs.5 lakhs.
  • Director & shareholder can be the same person.

Documents Required In Converting Private Limited Company Into A Public Limited Company

  • Passport size photograph of all directors
  • PAN card copy of all the directors
  • Copy of Aadhar card/Voter id card
  • Copy of property papers (if owned)
  • Copy of rent agreement (if rented)
  • NOC from the landlord
  • Registered office address proof (electricity bill or water bill)

Procedure Of Converting Private Limited Company Into A Public Limited Company

  • Calling of board meeting – As per provision of section 173(3) of the companies act 2013, issue a notice to hold a meeting with the board of directors to discuss about the conversion of private limited company into a public limited company. The main agenda of this board meeting is mentioned below –
    1. Passing of board resolution after getting principal approval from the director to convert private limited company into a public limited company by altering articles of association (AOA).
    2. Fixing the date, time & place of extra ordinary general meeting (EGM) to pass a special resolution after getting approval from shareholders to convert private company into a public company.
    3. Approving of EGM notice with agenda and explanatory statement.
    4. Authorizing the director or company secretary to issue EGM notice after getting the board approval.
  • Issue of EGM notice – As per the provision of section 101 of the company’s act, EGM notice is issued to all members, directors and auditors of the company.
  • Holding extra ordinary general meeting – Extra ordinary general meeting (EGM) is held to pass a special resolution and to get shareholder’s approval for converting private limited company into a public company along with AOA alteration under section 14.
  • ROC form filing – Few E- forms are filed with ROC at different stages to alter articles of association and for converting private company into a public company.
    1. E form MGT.14 – This form is used to file special resolution with ROC passed to convert private company into a public company.
    2. E-form INC-27 – This is an Application to convert private limited company into a public limited company
  • Scrutiny of documents by registrar of companies – After receiving all the documents to convert private company into a public company, ROC will satisfy himself by doing verification of all the documents. If found satisfied, ROC will close the previous registration & issues a new certificate of incorporation.

Benefits Of Converting Private Company Into Public Company

  • The first benefit public limited company offers is inflow of public investment by issuing shares to general public.
  • By conversion into public company, you can easily raise capital from the general public.
  • Public limited companies enjoy better market status and gives confidence to the stakeholders.
  • Shareholders investing in a public company expect a better return on the investments.

FAQ’S on Converting Private Limited Company Into A Public Limited Company

Yes, it is mandatory to have at least 3 directors in a public limited company.
Any individual/organization can become a member of a public limited company. Foreigner nationals/NRI’s can also become a member of public limited company.
No, there is no additional fee you have to pay during the process of conversion.
No, it is 100% online process. Therefore, there is no need of you to be physically present during the conversion process.
MEET US

What Clients Say

Customer delight is our main goal and we are very serious about it.
Prakash Verma

Prakash Verma

“Finacbooks.com is a perfect example of a great customer service dealing with the best of accountancy services.“
Prakash Verma Signature
Praveen Chauhan

Praveen Chauhan

“They offered us good quality services in a least possible time at a best Price.“
Praveen Chauhan Signature
Pradeep Kochhar

Pradeep Kochhar

“Finacbooks.com is a trusted network of highly qualified accounting professionals who not only provided us quality accountancy services but also supported us by answering our each & every query on time without any delay. “
Pradeep Kochhar Signature
Informational, useful and resourceful

Blogs

Catch up our trending topics, news etc. in a simple, detailed and most professional way.
How to Apply for Aadhar Card? Aadhar Services & Information Online

How to Apply for Aadhar Card? Aadhar Services & Information Online

15 Jun, 2018

Aadhaar is a simple 12-digit number generated based on the demographic and biometric data of each individual. Established in 2016, UIDAI... Read More

How to check EPF Balance online?

How to check EPF Balance online?

22 Mar, 2018

Employee Provident Fund If you were scouring through the internet trying to learn how to check EPF balance online, you’ve made... Read More

What is POMIS? Is the Post Office Monthly Income Scheme Beneficial?

What is POMIS? Is the Post Office Monthly Income Scheme Beneficial?

13 Apr, 2022

Like most banks in India, the Post Office is also a reliable place to deposit money and undergo other transactions. You will particularly... Read More

Latest News & Updates

View More

Due Dates

  • Due date for deposit of Tax deducted/collected for the month of April, 2022. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

     May 07th ,2022

  • Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of March, 2022

     May 15th ,2022

  • Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of March, 2022

     May 15th ,2022

  • Due date for issue of TDS Certificate for tax deducted under section 194M in the month of March, 2022

     May 15th ,2022

  • Due date for furnishing of Form 24G by an office of the Government where TDS/TCS for the month of April, 2022 has been paid without the production of a challan

     May 15th ,2022

  • Quarterly statement of TCS deposited for the quarter ending March 31, 2022

     May 15th ,2022
View More