Numerous existing Private Limited companies in India wish to convert themselves into Public Limited Companies in terms of higher earning capacity and scalability. The main reasons a Private Limited Company would decide to go Public is first, there is no limit on the number of members a Public Limited Company can accommodate which in turn increases the funding capacity of a company by tenfold. Secondly, the Initial Public Offering is a tool that allows the Public Limited Company to obtain shares and removes the restriction on the transferability of shares which is a feature of a Private Limited Company. Private Limited companies that seek Growth and Flexibility would ideally choose to switch from a Private Limited Company to a Public Limited Company.

This article is divided into the Documents required and the procedure for the conversion itself.

Documents Required for this process are: A copy of the directors’ PAN card, Passport size photographs of directors, Copy of Aadhar card or voter ID, Copy of the rental agreement, Electricity or water bill (Business Place), The copy of property papers, if it is owned and Landlord NOC (No Objection Certificate) for providing the format

The Process for the conversion is pursuant to applicable provisions of the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. The process is initiated through a change in its Memorandum of Association and Articles of Association through following the correct procedures. A submission is expected to be made to the registrar in this respect. After having been satisfied that all measures conform with the specifications, the Registrar shall close the previous registration of the company. The Registrar shall issue a certificate of incorporation after registering the documents relating to the conversion. No debt, claims, liabilities, and commitments shall be acquired in the transformation of a business.
The next step is to call for a board meeting. Issuing notices according to the provisions of section 173(3) of the Companies Act, 2013, for converting a meeting of the Board of Directors.
The objective of such a meeting is that to decide, by special resolution, the date, time, and place for holding an Extra-ordinary General Meeting (EGM) to transform a private corporation into a public company to receive shareholder approval. To pass a board resolution to receive in-principal approval from directors to convert from a private limited company to a public company by changing the AOA (articles of association). According to Section 102(1) of the Companies Act, 2013, the notice of the EGM with an agenda and declaration to be attached to the notice of the General Meeting shall be authorized. To delegate the notice of the Extraordinary General Meeting (EGM) to the Director or Company Secretary as recommended by the Board under Article 1 (c). Another objective is of t the Pass Board is to raise the number of directors by up to 3 if the number of directors is less than 3.

Before the Extra-ordinary General meeting (EGM) is held, a notice must be issued following the provisions of Section 101 of the Companies Act, 2013, to all shareholders, affiliates, directors, and auditors of the firm. The Extraordinary General Meeting shall be held on the due date and shall transmit the requested Special Resolution in order to obtain the shareholder's consent for the conversion of a private company into a public company, along with the modification of the terms of the Agreement, for such conversion in compliance with section 14.

The next step is the filing in the Registrar of Companies. To amend the Article of the Association for the Conversion of a Limited Public Company pursuant to section 14, a few e-forms shall be filed and registered at various stages with the Registrar of Companies concerned, following the information given. Under Rule 33 of the Companies (Incorporation) Rules of 2014, the application for the conversion of a private company into a public company shall be entered in Form No. INC-27 for a fee. Following receipt of the documents relating to the conversion of a private limited company into a public limited company pursuant to section 18, ROC is satisfied that the company complies with the required requirements for the registration of a company. If this is the case, ROC (Registrar of Companies) shall enclose the previous registration and grant a new certificate of incorporation, after the documents submitted for reform have been registered in the company's particular class.

Thus this is the simplified version of the process of converting a Private Limited Company into a Public Limited Company. It is in actuality a complex process that requires attention to details and expert assistance.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.