Conversion Of Private Company Into Public Company
Converting your Private Limited Company into Public will always helps to boost your company and advantage of raising more capital.
EASY ACCESS TO PUBLIC FOR RAISING FUNDS
Public limited Company is the only corporate form of organization which is allowed to raise funds from general public. Public Limited Company enjoys better avenues for borrowing of funds. It can issue debentures, secured as well as unsecured, accept deposits from the public, etc. Banking and financial institutions prefer to render large financial assistance to Public Limited Companies. Even a closely held Company can operate as a Public Company without diluting promoters’ stake.
HIGH MARKET RECOGNITION
Public Limited Companies as compared to other business forms enjoys better recognition in the market and bestows confidence in the stakeholders.
- Minimum Authorised Share Capital shall be Rs. 500,000 (INR Five Lac)
- Minimum Paid-up Share Capital shall be Rs. 500,000 (INR Five Lac)
- Minimum 7 Shareholders
- Minimum 3 Directors
- The directors and shareholders can be same person
- If the above requirements are not fulfilled by the Private Company, then the relevant alterations / changes to be made before conversion
- DIN (Director Identification Number) for all the Directors
- DSC (Digital Signature Certificate) for one of the Directors
Steps In Conversion Of A Private Limited Company Into A Public Limited Company
- Board Meeting
- Notice of General meeting
- Filing of Special Resolution with RoC
- Filing of Prospectus or Statement in lieu of prospectus
STARTING A BUSINESS
Many founders are confused about what kind of entity to register when they start their business. Should it be a private limited company, limited liability partnership, partnership firm, one person company or a sole proprietorship. Each of these has very specific advantages and disadvantages. There is no one type for all businesses. A private limited company registration, for example, would be a good fit for any venture that will look for funding at a later stage. You can contact dobizindia for all the advice you need. We assure you of great service at a reasonable price.
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