Conversion of Private Limited Company
The situation describes the private limited company conversion into the public limited company.
The Private limited company conversion follows the proper regulated legal procedure.
This procedure is a governed by Companies Act, 2013 given by Ministry Of Corporate Affairs.
A Private Limited Company Conversion Basically following reasons:-
- Recognition, &
- Ease of the raising funds.
- It is a quite understandable that the going public or giving general public chance interact with your company directly, increases to the company’s recognition. Also, due to the public company’s reliability & big exposure, raising funds is a comparatively easy. In order proceed with private limited company conversion, you need to:
- Convene is a Board meeting. The board of the directors should pass resolution with the mutual consent regarding approval of the company’s conversion.
- Convene a general meeting, including members and directors and auditors of the company. A special resolution is the pass. This special resolution is made order reflect amendments to Memorandum of Association & Article of Association and also increase share capital of company. For, public company minimum share capital is a Rs 5 lakhs.
- Finally, an application is filed along with the specified documents. and application is filed filing form INC-27 & MGT 14 along special resolution within 30 days passing special resolution. Other documents like altered copy of Memorandum of Association and Article of Association minutes of the board as well as general meeting and an explanatory statement for conversion, particulars of the members(at least seven) and directors(at least three) has submitted also.
- Alternatively, conversion public company can be done online by filling Forms INC-32, INC-33 (Memorandum of Association) &INC-34 (Article of Association) through the Simplified Proforma for Incorporating Company Electronically or SPICE.
- All documents submitted Registrar Companies. An application is a filed. An acknowledgment slip is a obtained. Online filing can be give you liberty to check the progress of your application online