CONVERSIONS

Conversion of Private Limited to Public Limited

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Overview

For ambitious businesses poised for exponential growth, the transition from a private limited company to a public limited company (PLC) marks a pivotal moment. It unlocks a gateway to broader public investment, heightened brand recognition, and the potential for accelerated expansion. Yet, navigating the intricacies of this conversion can be daunting. Fear not, intrepid entrepreneur! Company Avenue Advisory (CAA) is here to illuminate the path, guiding you through each step with meticulous expertise and unwavering support.
A PLC boasts several compelling advantages:
  • Capital Infusion: Raise funds through public issues of shares, boosting your financial muscle for ambitious endeavors.
  • Enhanced Brand Image: Publicly traded status elevates your brand presence, attracting broader market recognition and investor confidence.
  • Improved Governance: Stricter regulatory framework fosters increased transparency and accountability, bolstering trust and credibility.
  • Liquidity for Shareholders: Shareholders gain access to easier exits via stock market trading, enhancing the value of their investment.
 
However, conversion also entails increased compliance requirements and public scrutiny. Careful consideration and expert guidance are paramount for seamless execution.
Eligibility:

To embark on this transformation, your private limited company must meet specific criteria:

● Minimum Paid-up Capital: Your paid-up capital must exceed Rs. 5 lakhs.
● Minimum Shareholders: You must have at least 7 shareholders for conversion.
● Track Record: Your company must demonstrate a consistent operating track record with robust financial performance.

Features of Conversion:

Beyond access to capital, consider these benefits:

● Diversification of Shareholding: Spread ownership across a wider investor pool, mitigating risk and fostering stability.
● Enhanced Market Recognition: Public listing elevates your profile, attracting broader talent and valuable business partnerships.
● Improved Creditworthiness: Access to public markets often translates into better loan terms and lower interest rates.

Detailed Step-wise Procedure:

1. Board Resolution: Convene a Board meeting and pass a resolution proposing the conversion to a PLC.

2. Special Resolution: Call a General Meeting of shareholders and obtain a Special Resolution approving the conversion.

3. Alteration of MoA and AoA: Amend your Memorandum of Association (MoA) and Articles of Association (AoA) to reflect the new PLC structure.

4. Filing with ROC: Submit the requisite forms and documents with the Registrar of Companies (ROC) for approval.

5. Compliance Requirements: Implement stricter governance practices and internal controls to comply with PLC regulations.

6. Public Issue: If raising capital through an IPO, appoint a merchant banker and prepare for the public issue process.

List of Documents Required:

Beyond access to capital, consider these benefits:

● Diversification of Shareholding: Spread ownership across a wider investor pool, mitigating risk and fostering stability.
● Enhanced Market Recognition: Public listing elevates your profile, attracting broader talent and valuable business partnerships.
● Improved Creditworthiness: Access to public markets often translates into better loan terms and lower interest rates.

How it works

Experience effortless financial management with our streamlined process. Simply onboard, submit documents securely, and ensuring a seamless and efficient accounting partnership.
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Provide Necessary Documents

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Ultimate Startup Package

Our Ultimate Startup Package Service Include

Rs.21999/

/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Ultimate Small Business Package

Our Ultimate Small Business Package Service Include

Rs.23999/

/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Ultimate Enterprise Package

Our Ultimate Enterprise Package Service Include

Rs.25999/

/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Common Questions

Most Popular Questions

The process involves obtaining approval from the shareholders, altering the Memorandum and Articles of Association, filing necessary forms with the RoC, and complying with legal requirements for conversion.

Reasons may include raising capital from the public markets, facilitating trading of shares on stock exchanges, enhancing liquidity, and accessing a larger investor base.

The conversion must comply with the provisions of the Companies Act, 2013, and involve obtaining necessary approvals from shareholders, filing required documents, and paying prescribed fees.

Yes, subject to compliance with legal requirements, eligibility criteria, assessment of business viability, and approval from regulatory authorities.

Documents such as altered Memorandum and Articles of Association, board resolutions, special resolutions, prospectus (if applicable), and necessary forms for filing with the RoC are required.

The process must be completed within a specified timeline, as per the requirements of the Companies Act, 2013, and any applicable regulations.

Non-compliance may lead to rejection of conversion by regulatory authorities, penalties imposed by the RoC, and adverse impact on the business's legal status and operations.

Yes, Avenue Advisory provides expert assistance for conversion, including assessing eligibility, preparing documents, filing applications, and compliance monitoring.

 

Avenue Advisory ensures compliance with the conversion procedure by guiding clients through the process, preparing accurate documents, and liaising with regulatory authorities for approvals.

Outsourcing to Avenue Advisory ensures accuracy, compliance, timely processing, and expert support, enabling businesses to navigate the complexities of transitioning to a public limited company smoothly.

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4 Seamless Steps to Your Success

Get what you need with Company Avenue Advisory's hassle-free process. Follow these four simple steps and let us handle the rest:
STEP 1: Get Started (FREE!)

Share your needs and questions through our Quick Enquiry Form. Connect with a friendly advisor for a personalized call within 24 hours. Receive a clear quote without any obligation - it's all about understanding your goals!

STEP 2: Find Your Perfect Path

Our dedicated advisors listen to your needs and help you explore options. We make things clear and answer any questions you have along the way. Get expert guidance and feel confident about your next steps.

STEP 3: Get it Done Simply

Access our streamlined platform for easy document management. We provide a simple questionnaire and checklist to ensure everything's covered. Relax knowing we're here to guide you every step of the way.

STEP 4: Pay Actual Fee and Enjoy Peace of Mind

Receive a transparent and fixed fee before you proceed – no surprises! Focus on achieving your goals knowing everything is handled efficiently and ethically. Trust our expertise and enjoy the journey towards your success.

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