Conversion of Private Company to Public Limited Company

This IPO News guide/article covers “Conversion of Private Company to Public Limited Company”. The page is organized around is conversion to a public limited company mandatory to bring an sme ipo?, get ready to convert into a public limited company, how to convert a private limited company to public limited company?, step 1: call the board meeting, step 2: conduct egm or general meeting. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

• Is conversion to a Public Limited Company mandatory to bring an SME IPO?
• Get Ready to Convert into a Public Limited Company
• How to convert a Private Limited Company to Public Limited Company?
• Step 1: Call the Board Meeting
• Step 2: Conduct EGM or General Meeting
• Step 3: File to RoC
• Step 4: Obtain RoC approval
• Documents required for Incorporation of a Public Limited Company
• Post-Conversion Compliance Requirements for Public Limited Companies
• SME IPO Enquiry
• Compare Stock Brokers Side-by-Side

Key Facts

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• Minimum paid-up Capital: The minimum paid-up capital must be increased to Rs 5 lakhs to become a public limited company, whereas it is only 1 lakh for a private limited company.
• Minimum number of Shareholders: A private company can be formed by only two members, but to get converted into a public limited company, your company must have at least 7 shareholders.
• Number of Directors: A minimum of 3 directors are required for a public limited company, while private companies can have only 2 directors.
• The company must issue a notice to call a board meeting of directors. The notice must be distributed at least 7 days before the board meeting. The agenda of the meeting shall include:
• Pass a board resolution to increase the number of directors, as a public limited company requires at least 3 directors.
• After the board meeting, the company must issue a notice to conduct a general meeting. The notice must be circulated at least 21 days before the meeting. The agenda of the general meeting includes:
• A special resolution can be passed if at least 75% of the votes are in favor of the proposed conversion.
• According to section 117 of the Companies Act, whenever a company passes a resolution in its board meeting, it must be filed to the RoC (Registrar of Companies) within 30 days.
• File Form MGT 14: The company has to file E-form MGT 14 to RoC within 30 days to communicate about the respective resolutions along with the following documents:
• If the EGM was called at short notice, a copy of the consent was given by at least 95% of members.
• Latest bank statement (not older than 2 months) of all the directors and shareholders.
• Utility bill not older than 2 months of the registered office of the company.
• Appointment of company’s auditors (must be appointed within 30 days of incorporation).
• Approve preliminary expenses.
• Obtain the commencement of business certificate within 180 days of the incorporation.
• Conduct at least 4 board meetings every calendar year, maximum gap between two meetings cannot be more than 180 days.
• 10 Key Things to be Considered by SME Promoters before going public via SME IPO

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