Convert Private Limited Company to Public Limited Company

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    Know about Conversion of a Private Limited Company into Public Limited Company

    Converting a Private Company into a Public Company unlocks new opportunities, particularly in terms of fundraising and market expansion. The company can raise capital through a public offering and accept deposits. This structure is well-suited for medium and large-scale enterprises. The conversion process requires government approval and amendments to the Memorandum of Association (MoA) and Articles of Association (AoA).

    Additionally, the conversion necessitates a minimum of 7 members and 3 directors. Despite the change, the company’s rights, liabilities, powers, and obligations remain unchanged. Share transfers become possible as the restrictions on share transfer are lifted upon conversion.

    Benefits of Conversion of Private Limited into Public Limited

    Raising capital through public issue of shares

    The capacity to issue shares is one of the most advantageous features of a public limited company. Particularly if it is listed on a reputable stock exchange, it can attract investments from sources such as hedge funds and mutual funds. The potential to raise capital is significantly higher compared to a private limited company.

    Limited liability

    The liability of each shareholder or member remains limited, even after conversion. Their responsibility is confined to the extent of their shareholding, ensuring that their personal or individual assets are not at risk.

    Brand Awareness

    When a company goes public and gets listed on a stock exchange, it gains wider visibility and increased awareness of its operations. This heightened brand recognition can lead to greater business opportunities.

    Transferability of shares

    The liability of each shareholder or member continues to be restricted, even after the conversion. Their exposure is limited to their shareholding, safeguarding their personal assets from any potential risk.

    Documents Required for Conversion of Private Company to Public Company

    PAN Card

    PAN Card of shareholders and Directors. Foreign nationals must provide a valid a passport.

    Business Address Proof

    Electricity Bill/ Telephone Bill of the registered office address

    Incorporation documents

    Certificate of Incorporation, MoA & AoA to be provided

    Identity Proof

    Voter ID/ Passport/ Driving License of Shareholders and Directors

    NOC from owner

    No Objection Certificate to be obtained from the owner(s) of registered office

    Financial Statements

    Duly certified copy of latest audited Financial Statements

    Address Proof

    Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors

    Rent Agreement

    Rent Agreement of the registered office should be provided, if any

    Income Tax Return

    ITR filed for the previous financial year to be submitted

    Photograph

    Latest Passport size photograph of Shareholders and Directors

    Note

    In case of NRI or Foreign National, documents of director(s) must be notarized or apostilled

    Need assistance? Don’t worry, experts are here to help!
    Call us at: 1800 313 4151 or Email us: support@taxpen.in

    Convert into Partnership in 3 Easy Steps

    1. Answer Quick Questions
    • It takes less than 10 minutes to fill in our questionnaire
    • Provide basic details & documents required for proprietorship to partnership conversion
    • Make payment through secured payment gateways
    2. Experts are Here to Help
    • Assigned Relationship Manager
    • Drafting of Partnership Deed
    • Payment of Stamp Duty on Deed
    • Notary of Partnership Deed
    • Application for PAN and TAN
    3. Your Business is Established
    • All it takes is 12 working days*

    Process to convert proprietorship to LLP

    Day 1-2

    • Consultancy and assistance for conversion
    • Collection of basic information & documents

    Day 3– 5

    • Application for Digital Signature Certificate (DSC)
    • Application for DIN allotment of Designated Partners

    Day 6– 7

    • Checking Name availability
    • Application for Name Reservation

    Day 8 – 12

    • Drafting the incorporation document
    • Filing form for converting sole proprietorship to LLP
    • Certificate of Incorporation

    Day 13– 18

    • Application for PAN and TAN of LLP
    • Drafting of LLP Agreement, with conversion clause

    Day 19– 21

    • Payment of Stamp Duty
    • Filing of LLP Agreement with MCA
    • Government processing time

    Private Limited Company to Public Limited Company