Conversion of Private Limited into Public 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
All movable and immovable properties of the firm automatically vest in the Company. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
All partners of the partnership firm shall become shareholders of the company in the same proportion in which their capital accounts stood in the books of the firm on the date of the conversion.
The partners receive consideration only by way of allotment of shares in companyand The partners share holding in the company in aggregate is 50% or more of its total voting power and continue to be as such for 5 years from the date of conversion.
Steps in Conversion of a Private Limited Company into a Public Limited Company:
|STEP NO.||STEPS||TIME FRAME(Working Days)||Processing|
|1||Board Meeting||2||Pass a resolution for deletion of articles (which are originally required to be included in the articles of a private company) and recommend it to the shareholders for adoption by them at a General Meeting|
|2||DSC (Digital Signature Certificate)
Getting DSC for any one of the Director for digital authentication of the Incorporation documents
DIN (Director Identification Number)
Approved DIN is a pre-requisite for incorporation process
Preparation of Main Object & Name Availability Search
(Varies by the response time taken by the Promoters)
Application for Name Availability