A public–private partnership is an arrangement between two or more public and private sectors of a long-term nature
Private limited companies offer so much by itself, but at some point every private limited company, wishes to turn public so as to enlarge scalability. The question usually put across is, “Why to go public?” The answer depends on certain distinct difference that occurs between private limited companies & public limited companies which also offer the concept of Initial Public Offering (IPO) & has the concept of shares to the general public.
The concept of IPO - Initial Public Offering thereby removes the restriction on that transferability of shares, which is a characteristic of private limited companies. It has been settled that there is no cap in terms to the maximum number of members in any public limited company, thereby permitting them to raise & gain easy access to funding. Consequently, growth & flexibility are preferably the reasons for the changing from private to public. By complying with the following requirements, a Private company can be converted in to public company, which are given bellow:-1. Alteration of its articles by AOA, thereby deleting the three restrictions of a Pvt. company, as per Section 14 by passing a special resolution.
2. Altering its name thereby removing the word ‘Private’ from its name, as per Section 13 by passing special resolution.
3. Moreover, steps should be taken to increase the number of members to at least 7 if the number of members is below 7, and if there are only 2 directors that the number of directors should be increase to at least 3.
4. The company turns out to be public under Section 14 from the date of passing Special Resolution. However, the change in its name, by deleting the word ‘Private’ becomes in effect only on the issue of fresh incorporation certificate by the ROC.
1. Shareholders of a public limited company can transfer their shares with great ease. All they need to do is file the share transfer form and hand over the share certificate to the buyer. The process of transferring a share to another business structure is very tedious.
2. The advantage of the public limited structure is that you can leverage it to raise capital from the general public through shares. This would, however, require listing on a stock exchange. All public limited companies can issue fixed deposits, debentures, convertible debentures to the general public.
3. Public limited companies need to disclose their audited statement of accounts, inform the regulatory bodies of any structural change, and hold annual general body meetings for all shareholders. These compliance procedures bring a great deal of credibility to the organization.
4. As per the subject to Section 76 of Companies Act 2013, the rules Public Companies can accept deposits from public.
5. The limited liability concept remains even after conversion from Pvt. Ltd. to Public Ltd.
1. PAN Card of shareholders & Directors.
2. Foreign nationals should provide a valid passport.
3. Voter ID/ Driving License/ Passport of Shareholders & Directors
4. Address Proof: Electricity Bill/ Telephone Bill / Latest Bank Account Statement of Shareholders & Directors
5. Photograph: Latest Passport-size photo of Shareholders & Directors
6. Business Residence Proof: Telephone Bill/Electricity Bill of the certified office address
7. No Objection Certificate from the landlord: NOC to be collected from the owner(s) of certified office
8. Rent Lease: Rent Lease-Agreement of the certified office must be granted if any.
9. Income Tax Return: ITR filed for the previous fiscal year to be submitted
10. Memo: Documents of the director(s) must be notarized in case of NRI or Foreign National
11. Financial Statements: Duly attested copy of latest audited Financial Statements
12. Incorporation certificates: Declaration of Incorporation, MoA and AoA to be offered
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