The capital of a public company is generally raised from the public at large as the shares of public company can be listed in a stock exchange by complying with listing requirements.
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Conversion of Private Limited Company into Public Limited Company
A Private company is an organization which limits its number of members to 200 and cannot invite public to subscribe to its shares. The Companies Act, 2013 provides for converting a Private Company to a Public Company by altering the MOA and AOA of the company. The main advantage of Public Company is that it can raise reserves at a large scale without approaching banking system and reducing debt whereas Private Companies which are privately owned, all the reserves are raised by existing members, shareholders and promoters.
Advantages of Public Limited Company
Better access to capital
The capital of a public company is generally raised from the public at large on other hand in private company numbers of members are limited to 200.
Transferability of shares
The shares of a public company are freely transferable. This makes investment in the shares liquid and an investor is not bound to remain with the company.
Scope for expansion
There is unlimited scope for growth and expansion of business. New shares can be used to raise additional capital. Experts can be employed to manage the increasing business activities.
Listing
The shares of public company can be listed in stock exchange by complying with listing requirements for more liquidity and easy access for public at large.
Process for Conversion of Private Limited Company into Public Limited Company
What you do
You just need to fill our simple form regarding the basic details of director and business activities and provide certain documents.
What We do
Conversion of Private Company into Public Company in India needs approval from the Registrar of Companies (ROC). We will be preparing and filing all the documents with the MCA.
What you get
Once the required resolutions were passed by the company, we will start the process for conversion of the company.
You will receive fresh Certificate of Incorporation within a week from completion of process for conversion of the company.
Frequently Asked Questions
How many minimum numbers of directors required to be appointed in Public Company?
Minimum three directors need to be appointed in public company. In case of conversion increase the number of directors to three (if required).
How many minimum numbers of members required being in the Public Company?
Minimum number of members is seven in public company. In case of conversion increase the number of members to seven (if required).
What is the minimum Capital requirement for Public Company?
At present there is no requirement for a minimum paid up capital.
Do I need to be physically present?
All the documents are filed in electronic form and there is no need of any physical presence.
- Name of the partnership firm.
- Place of business of the firm.
- Names of any other places where the firm carries on business.
- Date of joining of each partner.
- Name and permanent address of the partners.
- Duration of the firm.
The statement must be signed by all partners or by their agents specially authorised in this behalf.
What is the maximum number of partners in a banking and non banking partnership firm as per new companies act, 2013?
Earlier the Maximum Limit of Partners/Members was:-
In case of banking business – 10
In case of any other business – 20
Now the same has been simplified and the limit has been raised to 50 Partners/Members for any business.
WHO MUST OBTAIN VAT REGISTRATIONS??
In Delhi VAT Registration mandatory for Manufacturers/Traders/Exporters/Dealers and also for Online traders.
WHEN SHOULD VAT RETURN BE FILED?
Sales Tax Returns are to be filed Quarterly by the 20 th July, October, January and April for the quarter ending June, September, December and March, respectively. However hard copy of vat return is required to be filled on or before 27 th of relevant quarter.
HOW DO I SEND THE DOCUMENTS FOR RETURN FILING?
You can scan and upload your documents to the My Account page.