Conversion of Private to Public Company.

Conversion of Private to Public Company.

According to Companies Act 2013 there many type of company.

1.Private limited Company

2.Public Limited Company

3.Limited Liability Partnership company

4.One Person Company.

5.Government Company

6.Section 8 Company.

After registration  of a company there is a option to change from existing company to other type of company.

We will discuss  in this article about conversion of a private company into public  company.

Need of conversion of a private company to public company.

Private company has many restriction.

There are limitation of number of members in the private  company but there is no no cap with public company regarding number of members.

Private company cannot transfer its share to public while public company shareholder can transfer his share to any one .

Public companies can offer the Initial Public offering ( IPO) to general public. General public  transfer his shares  of a public company to number of times.

Procedure for conversion into a public limited company in to a public company.

Procedure for conversion of a private company  into a public company according to the Companies ( Incorporation) Rules 2014.

The company board of director are to be issued a notice regarding the agenda of the board meeting. The of board meeting has to be issued to their respective registered on or before 7 days prior to the date of meeting.  The  agenda of the board meeting for approval of the shareholders.

Conversion of the private limited company into a public limited company.

Adoption of a  amended Memorandum of Association with name as public limited instead of private limited.

Adoption of a  amended Articles of Association

Extra ordinary general meeting should be held and authorised a person regards EGM

-The date time and place for the extra ordinary general meeting.

Notice for extra ordinary general meeting shall be given at least 21 days before the actual date of EGM.

Notice shall be circulated to all board of directors, Members, Auditors  of the company.

Filing of the form with ROC

Conversion of a Private company  into a public company we need to file an application in e-Form Inc-27 with the register within a prescribed time ( Fifteen days)  of passing of special resolution along with the following attachments:

Minutes of the Members Meeting.

Altered Memorandum of association

Altered Articles of Association

Certified true copy of Special Resolution.

Filing of Form MGT-14 with ROC

Conversion of private company into public company need to file eForm MGT-14 with the registrar of Companies within 30 days of passing the special resolution in the extra ordinary general meeting  along with prescribed documents.

Copy of the Notice of meeting sent to members.

Altered copy of the the Memorandum of association.

Altered copy of the Article of association.

A copy of special resolution  passed in the EGM’

After conversion many change need to be done

1.PAN card

2. Bank Account

3. GST registration no.

etc.

How to change existing Company Name

 

Leave a Reply

Your email address will not be published.