Company Conversion From Private Ltd Company to Public Ltd Company:-
Private limited companies are a dime a dozen, but every private limited company, at some point, wishes to turn public so as to increase scalability. The question generally put across is, “Why go public?” The answer lies in certain distinct differences that arise between private limited companies and public limited companies.
- Public companies offer the option of Initial Public Offering (IPO). Here, by going public, the company is offering its shares to the general public.
- The option of IPO thereby removes the restriction on the transferability of shares, which is a feature of private limited companies.
- There is no cap with regards to the maximum number of members in a public limited company, thereby allowing them to raise and gain easy access to funding. Therefore, growth and flexibility are ideally the reasons for the switch from private to public.
Documents Required:
- Digital Signature Certificates (DSC) of all Directors.
- Director Identification Number (DIN) of all Directors.
- Identity proof of all Directors.
- Address proof of all Directors.
- Passport size photographs of all Directors.
- Proof of business address:
- Where the premises are owned, the documents require-
-No Objection Certificate from the owner.
-Copy of utility bills (Not more than two months old)
- Where the premises are on a rental basis-
-Rent agreement
– Copy of utility bills (Not more than two months old)
- Certified copy of the latest financial statements.
- Copy of the latest Income Tax Return Acknowledgement.
- A fresh PAN card has to be applied for.
- All business letterheads and related stationery should be updated with the company’s new name.
- The bank account details of the company are to be updated.
- The intimation is to be given to the tax authorities and other related personnel regarding the conversion into public limited company.
- Printed copies of the new MOA and AOA have to be made at the earliest.