Convert Private To Public Limited Company is a service offered by First Auditor in Chennai, Tamil Nadu. In Chennai, Tamil Nadu, we are the top conversion of Private To Public Limited Company consultants. In Coimbatore, Madurai, Tirupur, Trichy, Thanjavur, Dindigul, Erode, Salem, Namakkal, Karur, hosur, tuticorin, krishnagiri, Cuddalore, Kanyakumari, Pondicherry, we offer Private To Public Limited Company conversion. We provide low-cost conversion of Private to Public Limited Companies. We provide the service at a lower cost and more efficiently than our rivals.
Overview of Private to Public Limited Companies
Private Limited Company
A privately held firm for small businesses. In a private limited corporation, each member's responsibility is limited to the amount of shares that they each own. A private limited company's shares cannot be exchanged.
Public Limited Company
A business whose shares can be bought and sold by anybody and are traded on a stock exchange. A publicly held firm is another name for it. A public limited company is one that, as its name implies, sells firm shares to the broader public. A public limited company is one that offers firm shares to the general public and has limited liability, according to the Company's Act of 2013. Anyone can purchase shares of such a corporation through IPOs or stock market trading, respectively (Initial Public Offerings).
Benefits of a Public Limited Company
Quickly Transfer Shares
A public limited company's shareholders can easily transfer their shares. They only need to give the buyer the share certificate and file the share transfer form. A stake must be transferred extremely laboriously to another business structure.
Raise Funds
The public limited structure has the benefit of allowing you to use shares to raise cash from the general public. However, doing so would necessitate being listed on a stock exchange. All public limited businesses are permitted to offer the general public fixed deposits, debentures, and convertible debentures.
Greater Reputation
Public limited businesses must make their audited statement of accounts public, notify regulatory agencies of any structural changes, and hold annual general meetings that are open to all shareholders. The organization gains a lot of trust from these compliance measures.
Documents needed to change a private limited company into a public limited one
- A copy of the PAN card for the directors.
- Director portraits the size of a passport.
- A copy of your voter ID or Aadhar card.
- A duplicate of the rental contract.
- Water or electricity bill (Business place).
- A copy of the title documents, if any.
- For supplying the format, thank the landlord's NOC (No Objection Certificate).
FAQ
Is changing the company name during conversion required?
The suffix must be changed from "Private Limited" to "Limited," yes.
Is the Managerial Remuneration of a Public Limited Company Restricted in Any Way?
No, there are no restrictions placed on the Managerial Remuneration in a Public Limited Company, in contrast to a Private Limited Company.
Are three directors required for a public limited company?
Yes, a public limited company must have at least three directors.
What are the conditions for the conversion process?
The main requirements include DSC for at least one director, a minimum of seven shareholders, DIN for every director, a minimum of three directors, and the possibility of a single person serving as both a director and shareholder.
Who is qualified to join a public company as a member?
Any person or organization is qualified to join a public business, including foreigners and NRIs.
What advantages do private limited companies have about public limited companies?
The process of conversion offers the firm the ability to generate capital through the issuance of shares to the public, list those shares on a recognised stock exchange, transfer shares, and accept public deposits under Section 76 of the Companies Act of 2013.
Is it necessary for the Public Company to submit an application for a new GST Registration?
No, a new GST Registration is not necessary. However, previous records can still be altered and modified.
Which law controls the conversion of a private limited company to a public limited company process?
Sections 2(68) and 2(71) of the Companies Act 2013, Section 3 of the Companies Act 2013, Section 149 of the Companies Act 2013, Section 13 read in conjunction with Rule 29 of the Companies (Incorporation) Amendment Rules 2020, and Section 14 read in conjunction with Rule 33 of the Companies (Incorporation) Amendment Rules 2020 are the legal provisions that are relevant to the process.
How long does it take for a private business to become a public one?
It takes at least 20 to 25 business days to convert a private corporation to a public one.
When may a business begin managing its operations?
Once a Public Company has obtained COI (Certification of Incorporation) from the Registrar of Companies, it may begin conducting business (ROC).