Conversion of Public Ltd to PrivateGet Started
How a private company can convert into public company?
The conversion of Public Company into Private Company makes it easier to meet compliance and regulatory provisions and exercise greater control. For instance, a private company does not need to hold a meeting of shareholders and pass a special resolution to do related-party transactions.
These following exemptions made available through the notification to private limited
1. Related party transactions
2. Share capital
3. Public deposits
4. Meeting Requirements
5. Agreements and resolutions
6. The auditor eligibility
8. Power of the board
9. Senior Management Appointment
After conversion of Public Company into a Private Company kindly take care of the following points:
1. Intimate all the concerned authorities like GST department, Excise, and sales tax etc. about the status change.
2. Arrange new PAN No. of the company. Update company bank account details.
3. Arrange new stationary with new name of the Company.
4. Analyze your newly adopted AOA and MOA and remove all things which are in contradiction with the conditions of AOA
Documents Required For Conversion of Public Ltd to Private
- ID and Address proof of Directors
- MOA and AOA of the company
- Certificate of Incorporation (COI) of the company
- List of Creditors
- Copy of Newspaper Advertisement
A company whose ownership is private. A company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles. A private company denotes a company of two or more persons, but not exceeding fifty excluding the employees and shareholder
A producer company is basically a body corporate registered as Producer Company under Companies Act, 1956. Its main activities consists of production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the members or import of goods or services for their benefit. Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.
Public company means a company which is not a private company. Public Limited Company a minimum paid-up capital of five lakh rupees or such higher paid-up capital, as may be prescribed.
An individual or company that, for a fee, helps raise money for some type of investment activity. Most often, promoters raise money for a company through offering investment vehicles other than traditional stocks and bonds, such as limited partnerships and direct investment activities. Often times, these promoters are paid in company stock or free entrance into the investment activity as compensation for their work in raising funds from others.
Stamp duty is subject matter of states and depends upon state laws for payment of stamp duties. Separate chart showing stamp duties for incorporation of company in various states of India can be downloaded here.