Turning a private company into a public company opens up a world of opportunities, especially in terms of capital and market reach. The company can collect deposits and raise funds through a public offering. Government approval and update MOA and AOA will follow the conversion. This structure is appropriate for medium and big businesses. A public company has seven or more members with three directors and can issue shares to the general public. A public company's subsidiary company is considered a public company.
Documents for Registered Office Address
If you've rented a property, you'll need a letter of authorization from the owner (format given by our company)
They are raising funds through a public share issue. It can attract investors mainly for traded on a well-known stock exchange. A public limited corporation can raise substantially more capital than a private limited company.
When a private limited company becomes public, it gets listed on the stock exchange, implying it shares available to the general public. People are aware of it and its functions. As a result, enhanced brand recognition will result in growth.
With this conversion, this property is preserved. Each shareholder or member's liability is limited. Their liability is limited to the value of the stock they possess. The private or personal assets of shareholders or members are not at risk.
Shares in a public limited corporation are freely transferable, unlike those in a private limited company. Shareholders can easily sell their shares. This encourages people to invest because they are not obligated to stay with the company indefinitely.
There is no minimum time limit outlined in the Act, so if our management desires, they can convert their private company to a public company at any time.
Yes, the "Private Limited" suffix will be replaced with "Limited."
A public limited company's shareholders are its director.
The board of directors manages the company's business.
In a public limited company , there are 3 minimum directors required.