PRIVATE LIMITED TO PUBLIC LIMITED

In India, the share transferability of a private limited company is limited to 50 shareholders, and they are restricted from freely trading their shares with the general public. However, a Public Limited Company does not suffer such limitations and its shares may be freely traded amongst the general public.

Further, the main advantage of Public Company is that it can raise reserves at a large scale without approaching banking system and reducing debt whereas Private Companies which are privately owned, all the reserves are raised by existing members, shareholders and promoters.

Minimum Requirements:

• Minimum 7 shareholders
• Directors and Shareholders can be same person
• Minimum 3 Directors
• DIN for all directors

Documents Required for the Conversion to Public Company:

Documents required for Conversion of Private Company to Public Company are same as documents required for Incorporation of a Public/Private Company along with other documents.

• Altered memorandum and articles of association.
• Notice of Extra-Ordinary General Meeting (EGM) which was held to obtain approval of members for the conversion of a Private Limited Company to Public Limited Company.
• A certified true copy of the special resolution approving such conversion.
• Minutes of the Meeting where approval was given for conversion.
• Other additional documents as may be required.