Conversion of Private Limited Company to Public Limited Company

A Public Company comprises of seven or more members and can ideally invite public to subscribe to its shares. A subsidiary of a Public Company is reckoned to be a Public Company.

However a Private company is an organization that curbs its number of members to 200 and usually cannot invite public to subscribe to its shares. The Companies Act, 2013 furnishes for transfiguring a Public Company to a Private Company by revamping the MOA and AOA of the Company.

The main edge of Public Company is that it can raise reserves at a huge scale minus the proposition of the banking system and vanquishing debt whereas in Private Companies which are privately owned, all the reserves are elevated by existing members, shareholders. Public companies once recorded gets indirect promotions and assistance through stock exchange websites where their stocks are recorded.