Conversion of Private Ltd to Public
Convert your Private Limited Co to Public Ltd In Quickest and easiest wayConvert now.
What are the advantages for conversion of Private Limited to Public Limited?
Disadvantages of a company can be expensive to establish, maintain and wind up. the reporting requirements can be complex. ... if directors fail to meet their legal obligations, they may be held personally liable for the company's debts
The conversion of private limited company is generally done due to the following reasons: • Recognition, and • Ease of raising funds.
Documents Required For Conversion of Private Ltd to Public
- Copy of PAN Card of Directors
- Copy of Aadhaar Card/ Voter identity card
- Copy of Rent agreement
- Electricity/ Water bill
File Form No. 23 within 30 days of passing of the resolution along with the Attachment Special Resolution and the Explanatory Statement
File Form 62 with the RoC along with the Attachment Prospectus or Statement in lieu of prospectus (SLP) Letter of Application to the Registrar for fresh Certificate of Incorporation Consent letter of the Auditor for inclusion of his name in the SLP
Minimum 7 Shareholders are required
A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Although a small percentage of shares may be initially "floated" to the public, the act of becoming a public company allows the market to determine the value of the entire company through daily trading.
Once a company goes public, it has to answer to its shareholders. For example, certain corporate structure changes and amendments must be brought up for shareholder vote. Shareholders can also vote with their dollars by bidding up the company to a premium valuation or selling it to a level below its intrinsic value. Public companies must meet stringent reporting requirements set out by the Securities and Exchange Commission (SEC), including the public disclosure of financial statements and annual 10-k reports discussing the state of the company. Each stock exchange also has specific financial and reporting guidelines that govern whether a stock is allowed to be listed for trading.
Private companies may issue stock and have shareholders. However, their shares do not trade on public exchanges and are not issued through an initial public offering. In general, the shares of these businesses are less liquid and the values are difficult to determine.