Lecture 07

How to convert a private Company to Public Company:
Conversion of a Private Company into a Public Company
Public limited companies are better suited for expansion as capital can be raised easily. On the contrary, private limited companies are better for small businesses. As small businesses grow bigger, a need is faced to raise more capital to not miss out on opportunities. Public companies raise the required capital through the issue of shares. Also, these shares are traded in the share market which provides scope for further expansion. As per the Companies Act 2013, a private limited company can be changed to public limited by amending the Articles of Association and the Memorandum of Association. By availing legal services of Corporate Consult, the transition from public limited to private limited takes without hindrance.
Conversion of Private Limited to Public Limited
Corporate Consult is a team of CAs, Senior Advocates, and other experienced professionals who provide corporate legal services. Our team provides the best in class and swift services to meet the needs of our clients. The conversion of a company from private to public may seem full of difficulties but with the necessary experience and knowledge, our clients can plan ahead while we handle all the legal work.
• The first task is to meet the legal requirements of forming a public limited company. These are mentioned in the Companies Act 2013. After applying for the conversion, our experts will verify the necessary details.
• The next step is the amendment of MOA and AOA. Memorandum of Association mentions the details of Directors and other important details. Comparatively, more directors are required in a public limited company. Article of Association relates to the internal machinery of the company.
• A new company PAN card will also be needed. As every company is a legal person, it has to pay tax on its income and thus, needs a PAN card.
• The last step is to pay the registration fees for the conversion. The fee has to be paid to the Registrar, along with the necessary documents.