Private Limited to Public Limited Company
Easy access to Public for raising funds : Public limited Company is the only corporate form of organization which is allowed to raise funds from general public. Public Limited Company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured, accept deposits from the public, etc. Banking and financial institutions prefer to render large financial assistance to Public Limited Companies. Even a closely held Company can operate as a Public Company without diluting promoters’ stake.
High market recognition : Public Limited Companies as compared to other business forms enjoys better recognition in the market and bestows confidence in the stakeholders.
- Minimum Authorised Share Capital shall be Rs. 500,000 (INR Five Lac).
- Minimum Paid-up Share Capital shall be Rs. 500,000 (INR Five Lac).
- Minimum 7 Shareholders.
- Minimum 3 Directors.
- The directors and shareholders can be same person.
- If the above requirements are not fulfilled by the Private Company, then the relevant alterations / changes to be made before conversion.
- DIN (Director Identification Number) for all the Directors.
- DSC (Digital Signature Certificate) for one of the Directors.
Procedure of Conversion a Private Limited Company into a Public Limited Company
- Board Meeting.
- Notice of General meeting.
- Filing of Special Resolution with RoC.
- Filing of Prospectus or Statement in lieu of prospectus.
All this would be completed within a period of 45 to 60 days of time.