Get a Quote
Get a Quote and Find Services to Fit Your Needs 50000+ Satisfied Clients
5000+ Licenses & Registration
15 Branches across India
75 Years + Combined experience
A Public Limited Company, legally known as PLC, is a Publicly-held Company. It is a limited company whose shares can be traded with the public. PLC can be listed or not listed on the stock exchanges. PLC requires a minimum of three directors as a prerequisite.
A Private Limited Company, or LTD, is a Privately-held Company. This implies that the business limits owner liability to its shares and limits the number of shareholders to 50. It also restricts shareholders from trading shares publicly.
We have enlisted some advantages of having your Company registered as or converted to a Private Limited Company. It is the world's most commonly used business model and offers several advantages to its model subscribers.
The liability of shareholders is limited to their shares. Financial risks are a part of the business, but minimizing them and sustaining the business's progress are imperative. In an LTD, if, due to any reason, the Company were to be closed, the shareholders would not risk losing their personal assets.
The risk of takeovers is minimized when two shareholders trade shares, as the selling and buying of shares, are possible only when both parties have given their consent.
Private limited companies are incorporated; hence it continues to exist even if the owner dies.
Unlike Public Limited, LTD is not obliged to disclose its finances to the public.
It enjoys fewer legal restrictions as compared to a Public Limited Company. There is a necessity to call for a general meeting of members in Public Limited, whereas there is no such compulsion in Private Limited.
The Public Company needs a Certificate of Commencement of Business to start a business after incorporation. In contrast, a Private Company can start its business just after receiving a Certificate of Incorporation.
Before you're allowed to Public Limited Company to a Private Limited Company, you must fit the following criteria
The conversion applicant must submit the following documents and e-forms along with the Public to Private conversion application:
Special resolution for conversion of a private company into a public company is to be filed with the following attachments:
This meeting is held to pass the board resolution, which is the approval of Directors to convert a Public Limited Company to a Private Limited Company.
It is the online application for the conversion of a Public Limited to a Private Limited company.
The applicant must submit the MoM for approval for conversion and altered Articles of Association.
The procedure for the Public to Private conversion is as follows:
.png "General Procedure")
Organize an Extraordinary General Body Meeting inviting your Members, Shareholders, Directors, Creditors, Suppliers, and most of those involved with your Public Limited Company on a continuous basis.
Draft a meeting of minutes within 15 days of convening this board meeting
Make an entry in the Register of members via the FORM MGT-1 in case you've yet to dematerialize your shares.
The Company must acquire the directors' letter of consent to initiate this conversion.
Convene a general body meeting and obtain "No objection" from the members of your Company and your Company's creditors
Make changes to the Memorandum of Association as well as Articles of Association.
File the online form MGT-14 via the online MCA portal. Upload the letters of consent and other requisite documents when you do.
Advertise this conversion process to the local and national newspapers within 14 days of submitting the MGT-14 form. After your application is approved, Public to Private Limited Company conversion will be completed.
We at Registrationwala provide end-to-end solutions for conversion from a Public Limited Company to a Private Limited Company.
Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to a Public Limited Company to a Private Limited Company.
So, take your first steps towards this conversion and reach out to us.
Q. What is the procedure for conversion of Public Company to Private Company?
A. The procedure for the Public to Private conversion is as follows:
Q. Is the decision for conversion of Public Limited to Private Limited feasible?
A. Yes. The process is relatively easy for the vice versa conversion. If you have any doubts regarding such conversion, you can contact the Incorporation Experts at Registrationwala.
Q. Ltd Public or Private, which model is better?
A. It depends on your preference and requirement. You can choose the private model if you prefer share transferability among your closed group members. To raise public funds, you can go for the public model.
Q. What is the responsibility of the Board for the conversion of Public Company into Private Company?
A. The Board must pass a resolution stating the No-Objection certificates from the Board Members for conversion.
Q. Which form to fill for the Public to Private Company conversion?
A. MGT-14 form
Q. What is the main difference between Private Limited Company and Public Limited Company?
A. Private Company limits the share transferability among its closed members. In contrast, Public Company open their shares to the general public.
