Looking to convert your private limited company into a public limited company? Auriga Accounting provides expert assistance to make the process smooth and hassle-free—no need to visit government offices!
Private Limited Company To Public Limited Company
Make your business global. Apply from anywhere in India with Auriga Accounting.
Auriga Accounting has a team of registration experts who can provide complete guidance to register your Private Limited Company To Public Limited Company.
Our team of experts will get in touch with you and collect all necessary documents and details
We fill out and file your application for Private Limited Company To Public Limited Company
Ready Your Private Limited Company To Public Limited Company
Auriga Accounting has a team of registration experts who can provide complete guidance to register your Private Limited Company To Public Limited Company.
Our team of experts will get in touch with you and collect all necessary documents and details
We fill out and file your application for Private Limited Company To Public Limited Company
Ready Your Private Limited Company To Public Limited Company
Private limited companies provide numerous benefits on their own, but at a certain stage, many choose to go public to enhance scalability. The common question is: Why go public? The answer lies in key differences between private and public limited companies, including the ability to offer shares to the general public through an Initial Public Offering (IPO).
An IPO removes restrictions on share transferability, a limitation often faced by private companies. Additionally, there is no maximum limit on the number of members in a public limited company, making it easier to raise funds and access capital. Ultimately, growth opportunities and increased flexibility drive companies to transition from private to public status.
Efficient Share Transfer: Shareholders of a Public Limited Company can transfer their shares easily and efficiently. The process involves filing a share transfer form and handing over the share certificate to the buyer. Transferring shares in a new business structure can be complex and risky, so it’s advisable to consult legal experts for guidance.
Raise Capital: Public Limited Companies can raise funds from the general public by issuing shares, taking advantage of the public company structure. This typically requires listing on a stock exchange. Additionally, such companies can issue debentures, fixed deposits, and convertible debentures to the public to facilitate capital growth.
Greater Credibility: Public companies must inform regulatory bodies of any structural changes, disclose audited financial statements, and conduct annual general meetings for shareholders. These compliance requirements enhance the company’s credibility and attract greater brand recognition.
Limited Liability: The concept of limited liability remains intact even after converting from a Private Limited to a Public Limited Company, safeguarding shareholders’ personal assets.
Free Transfer of Shares: Shares of Public Limited Companies are freely transferable, subject to regulations under the SEBI Act and the Companies Act, allowing for greater liquidity and flexibility.
Acceptance of Deposits: Under Section 76 of the Companies Act, 2013, Public Limited Companies can accept deposits from the public, facilitating additional funding avenues.
Minimum 7 Shareholders: The company must have at least seven shareholders to be legally constituted as a public limited company.
DSC for One Director: At least one director is required to obtain a Digital Signature Certificate (DSC), which is essential for signing electronic documents and filings.
DIN for All Directors: Every director appointed must have a valid Director Identification Number (DIN), enabling regulatory authorities to identify and monitor directorial roles.
No Minimum Paid-Up Capital: There is no mandated minimum amount of paid-up capital, providing flexibility in capital structure based on the company’s requirements.
Same Person Can Be Director and Shareholder: The roles of director and shareholder can be held by the same individual, allowing for streamlined ownership and management.
Minimum 3 Directors: The company must appoint at least three directors to ensure adequate governance and decision-making capacity.
Auriga provide expert services which can get your new business off to a flying start. We are Compliance for your business. Here you get simple and affordable online company registration and range of essential services. A world class technology – driven platform, offering end to end service from startup to well established firm.
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