There are tons of benefits of converting a Pvt Ltd Company to Public Ltd company. The primary purpose of conversion is to make the company’s shares public. In the case of a public limited company, the share transferability is not limited among the company’s shareholders. The shares can be extended to the general public as well. This will also generate revenue for the company.
The conversion of a private limited company into a public limited company is complex and exhausting. It goes on for days, plus it has many legal roadblocks which hinge on the completion of the said conversion. Therefore, in this article, we have detailed to you the step-by-step procedure to convert a private limited company into a public limited company. The first step is convening a Board of Directors meeting.
Board of Directors meeting
- The first step towards the conversion is to issue a notice of meeting to all the directors of private limited. The said notice should be issued at least 7 days before the meeting date. In case of urgency, shorter notices can also be issued.
- Prepare an agenda for the meeting. Attach this schedule and draft resolution of the meeting with the issued notice. Mention the time and place of the meeting as well.
- Commence the meeting as soon as every member is present at the venue.
- Pass the necessary resolution for the proposal to converttheir private limited company into a Public limited company.
- Authorize a company secretary or any director from the board to file the relevant form with the Registrar of Companies (RoC).
- Fix the time and venue for the Extraordinary General Meeting (EGM).
- Authorize the same director from the board or a company secretary to sign and issue a notice for convening an EGM.
- After the Board Meeting, prepare and circulate the Minutes of the Meeting draft within 15 days to all the directors. Also, the company must arrange for the Extraordinary General Meeting.
Extraordinary General Meeting (EGM)
- Issue the notice of the EGM at least 21 days before the actual date of the meeting. Shorter notice can also be issued with the consent of at least a majority in number and ninety-five percent of such part of the company’s paid-up share capital giving a right to vote at such a meeting.
- Notice for the EGM must be issued to all the firm’s top executives, namely the directors, members, auditors, secretarial auditor, debenture trustees, and all entitled to receive the said notice.
- The issued notice must contain the time and full address of the venue for the EGM. The notice must also contain the motive of the meeting and the transactions carried out in it.
- Convene the EGM and pass the resolution for the conversion of your Private Limited Company into a Public Limited Company.
- Altering the Memorandum of Association and Articles of Association according to the propose setup of the converted public limited company.
- After the conclusion of the meeting, prepare the Minutes of the EGM and get them sign and compile.
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Filing Form INC-27
To convert your Private Limited Company into a Public Limited Company, the applicant must file an application in E-Form INC-27 with the Registrar within fifteen days of passing of resolution of conversion, along with the following attachments
- Minutes of the EGM Meeting
- Certified Copy of Resolution for conversion of your Private Limited Company into a Public Limited Company
- Altered Memorandum of Association
- Altered Articles of Association
- Application processing fee
- Any other relevant document(s).
Filing Form MGT-14
File the Form MGT-14 with the Registrar of Companies within 30 days of passing the Conversion Resolution, along with the following documents:
- Certified copy of the resolution for conversion, along with the explanatory statements.
- Copy of the Notice of meeting along with the attached annexures
- Copy of the altered Memorandum of Association
- Copy of the altered Articles of Association
- Copy of Attendance Sheet of the EGM
- Shorter Notice Consent, if issued.
Certificate of Incorporation
After E-Forms MGT-14 and E-Form INC-27 have been verified and approved, the Registrar of Companies will issue a Certificate of Incorporation for your converted Public Limit5ed Company with the changed name, if applicable.
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Convert your Limited Company into a Public Company with Registrationwala
Registrationwala is a leading legal consultancy firm that provides its clients with varied kinds of services, likes one being the conversion mention above. We, at Registrationwala, shall provide you with the solution for the conversion of your Private Limited Company into a Public Limited Company by committing ourselves at each step of the conversion process with you. Our services include:
- Firstly, Updating the Memorandum of Association and the Articles of Association of the limited company for you.
- Secondly, Filing Form INR 27 and MGT 14 on your behalf.
- After that, Reviewing the application and making the necessary changes.
- Then, Submitting the form to the RoC (Registrar of Companies).
- At the last, Delivering you the Certificate of Incorporation for your public limited company.
Consequently, Wait no more for this conversion, and reach out to us on our website.