A Public Company has seven or more members and can invite public to subscribe to its shares. A subsidiary company of a Public company is deemed to be a Public company. A Private company is an organization which limits its number of members to 200 and cannot invite public to subscribe to its shares. The Companies Act, 2013 provides for converting a Public Company to a Private Company by altering the MOA and AOA of the company. The main advantage of Public Company is that it can raise reserves at a large scale without approaching banking system and reducing debt whereas Private Companies which are privately owned, all the reserves are raised by existing members, shareholders and promoters. If a Private company goes public then the risk is also shared among the shareholders. Public companies once recorded, get indirect promotions and support through stock exchange websites where their stocks are recorded.
Conversion of Private Limited Company to Public Limited Company is done through us.
Documents required for Conversion to Public Company
- Copy of PAN Card of Directors
- Passport size photograph of Directors
- Copy of Aadhaar Card/ Voter identity card
- Copy of Rent agreement(If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC (Format will be provided)
Minimum Requirements for Conversion
- DSC for 1 Director
- Minimum 7 Shareholders
- DIN for all directors
- Minimum Authorized Share Capital of Rs 5lacs
- Minimum Paid up Share Capital of Rs.5lacs
- Director and shareholder can be the same person
- Minimum 3 Directors