Converting a Private Company into a Public Company opens up new avenues for growth, including easier fundraising and broader market access. This structure allows capital to be raised through public issues and acceptance of deposits, making it ideal for medium to large-scale businesses. The conversion requires government approval along with amendments to the Memorandum and Articles of Association (MoA & AoA).
Post-conversion, the company must have at least 7 members and 3 directors. All existing rights, liabilities, powers, and obligations remain intact, while share transfer restrictions are lifted, enabling smoother ownership transitions.
The primary advantage of a Public Limited Company is its capacity to raise capital through the issuance of shares. Once listed on a recognized stock exchange, it can attract investments from institutional investors such as mutual funds, hedge funds, and other large entities, allowing the company to secure substantially higher funding than a Private Limited Company.
When a company becomes public and gets listed on a stock exchange, it benefits from heightened visibility. This enhanced brand recognition can attract greater attention, opening doors to new business opportunities and potential partnerships.
After conversion, each shareholder’s or member’s liability remains limited to the amount of their shareholding, ensuring that their personal assets are protected and not exposed to the company’s obligations.
Shares in a public limited company can be transferred more easily than in a private limited company, offering shareholders greater liquidity and the flexibility to sell their holdings without being bound to the company long-term.
PAN Card of all shareholders and directors.
Foreign nationals are required to submit a valid passport.
Voter ID, Passport, or Driving License of all shareholders and directors.
Latest Telephone Bill, Electricity Bill, or Bank Account Statement of all shareholders and directors.
Recent passport-sized photographs of all shareholders and directors.
Latest electricity bill or telephone bill of the company’s registered office.
Obtain a No Objection Certificate (NOC) from the owner(s) of the registered office.
Provide the rent agreement of the registered office, if applicable.
For NRIs or foreign nationals, the directors’ documents must be notarized or apostilled.
Submit the Certificate of Incorporation along with the Memorandum of Association (MoA) and Articles of Association (AoA).
Provide a duly certified copy of the latest audited financial statements.
Submit the Income Tax Return (ITR) filed for the previous financial year.
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*Subject to Government processing time
To incorporate a public limited company, a minimum of 7 shareholders and 3 directors is required. Additionally, the minimum authorized capital must be ₹5 lakhs, compared to ₹1 lakh for a private company.
The suffix “Private Limited” will be changed to “Limited.” To make this change, the company must first obtain approval from the shareholders and then amend the MoA accordingly.
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