Conversion of Private Limited Company to Public Limited Company​

Overview of Conversion of Private Limited Company to Public limited Company

As your business continues to grow, converting your Private Limited Company into a Public Limited Company can unlock significant advantages, including greater access to capital, enhanced credibility, and the ability to raise funds through public offerings. At E Accountax Manager, we specialize in guiding companies through the intricate process of conversion, ensuring compliance with all legal requirements and a smooth transition that positions your company for future success.

Why Convert to a Public Limited Company?

• Access to Capital through IPOs: As a Public Limited Company, you can raise capital by offering shares to the public through an Initial Public Offering (IPO). This provides an opportunity to access a broader pool of investors and generate significant funds for business expansion.

• Unlimited Shareholders: Unlike Private Limited Companies, which are limited to a maximum of 200 shareholders, Public Limited Companies can have an unlimited number of shareholders. This allows for greater ownership distribution and more robust investment opportunities.

• Enhanced Credibility and Market Presence: Being a publicly traded company enhances your credibility and visibility in the market. It fosters trust among customers, suppliers, and potential investors, contributing to business growth and reputation.

• Transferability of Shares: Public Limited Companies allow easy transfer of shares without any restrictions, providing liquidity to shareholders and facilitating changes in ownership structure.

• Compliance and Corporate Governance: Transitioning to a Public Limited Company imposes stricter compliance and corporate governance standards, which can improve transparency, accountability, and overall business operations.

Process of Conversion from to Private Limited Company to Public Limited Company

Converting a Private Limited Company to a Public Limited Company involves several legal steps and meticulous documentation. Here’s how E Accountax Manager can assist you throughout the process:

• Board Meeting: We help you organize a Board Meeting where the decision to convert the company is discussed and approved. The agenda typically includes the adoption of a new Memorandum of Association (MOA) and Articles of Association (AOA), approval for conducting an Extraordinary General Meeting (EGM), and authorization of key personnel to handle the conversion process.

• Issuance of Notice for EGM: Following the Board Meeting, we assist in issuing notices for the EGM to all shareholders, directors, and auditors. This notice outlines the purpose of the meeting and the resolutions to be passed, ensuring compliance with the Companies Act, 2013.

• Holding the EGM: During the EGM, shareholders vote on the proposed resolutions, including the approval of the new MOA and AOA and the decision to convert to a Public Limited Company. We ensure that all resolutions are properly documented and passed as required.

• Filing with the Registrar of Companies (RoC): Once the resolutions are approved, we handle the filing of necessary forms with the RoC, including:

  • E-Form MGT-14: Filed within 30 days of passing the resolutions, along with the notice of the EGM, certified copies of resolutions, and the new MOA and AOA.

  • E-Form INC-27: Specifically for the conversion of a Private Limited Company to a Public Limited Company, this form must be filed within 15 days of passing the resolutions.

Why Choose E Accountax Manager?

• Expertise in Corporate Conversions: Our team of Chartered Accountants, Company Secretaries, and legal experts have extensive experience in handling corporate conversions, ensuring a smooth and compliant transition.

• Comprehensive Service: We manage the entire conversion process, from initial planning to post-conversion compliance, providing you with a seamless and worry-free experience.

• Tailored Solutions: We understand that every business is unique. Our services are customized to meet the specific needs of your company, ensuring that all legal and regulatory requirements are met.

• Transparent Process: We keep you informed at every step of the process, providing clear communication and real-time updates on the progress of your conversion.