Conversion of Pvt Ltd to a Public Limited Company - Overview
A Public Limited Company is a company that has limited liability and its shares can be freely traded and sold to the public. For converting a private to a Public Limited Company under Companies Act 2013, you need to have at least 3 directors, 7 shareholders and a paid-up capital of 5 lakhs.
The concept of IPO - Initial Public Offering thereby removes the restriction on that transferability of shares, which is a characteristic of private limited companies. It has been settled that there is no cap in terms to the maximum number of members in any public limited company, thereby permitting them to raise & gain easy access to funding. Consequently, growth & flexibility are preferably the reasons for the changing from private to public.
Minimum Requirements for Conversion
Minimum 7 Shareholders
DSC for 1 Director
DIN for all directors
No Minimum Paid up Capital
Director and shareholder can be the same person
Minimum 3 Directors
Benefits Conversion of Pvt Ltd to a Public Limited Company
Quick Share Transfer
Raise Capital
Greater Credibility
Limited Liability
Uninterrupted Existence
Documents Required For Registration
- PAN Card of shareholders and Directors A valid passport is a must for foreign nationals. .
- Identity Proof of Shareholders and Directors, such as aadhar card and Voter ID/ Passport/ Driving License.
- Address Proof of Shareholders and Directors, such as the latest Telephone Bill /Electricity Bill/ Bank Account Statement.
- Passport size photograph of Shareholders and Directors of updated.
- Business Address Proofs such as latest Electricity Bill/ Telephone Bill of the registered office address
- NOC or No Objection Certificate to be obtained from the owner(s) of registered office
- Rent Agreement is needed if the registered office is a rented place.
Process To Register
- Calling of Board Meeting
- Issue of EGM Notice
- The holding of EGM meeting.
- Registrar of Company(ROC) filing
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