When the growth of any business is happening at a rapid pace, the plan for the future would be to make the business into a Public company and allow the public to invest into it.
Any existing private limited company can be converted Public and a new registration process is not required.
However, for this conversion, a set of steps are to be followed and they are mentioned below.
Steps to be Followed:
- Firstly, a resolution among the board of directors of the existing Private Limited Company needs to be passed and the conversion of the company from a private limited to a public limited needs to be approved in the board meeting.
- The paid capital of the company needs to atleast be Rs.5 lakh. If it has been any lesser, it has to be increased.
- As the next step, a special resolution needs to be passed with the shareholders for the amendment of the name clause in the Memorandum of Association and removal of restrictive provisions in the Articles.
- Now, the application is sent to ROC with a filled Form No 23 and a prospectus of the company which states the nature of business, investment strategies of the company etc.
- A certificate of commencement should arrive from the ROC which would indicate the conversion to be complete, only after which operations can be started.
The above content must have given you some quick information about the process that is involved in the conversion of a Private Limited Company to a Public Limited Company.
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