The conversion of a private limited company into a public limited company is a procedural transition whereby a company changes its legal status from private to public. The main difference between the two is that a private limited company has restrictions on the transferability of its shares, while a public limited company can freely trade its shares on a stock exchange.
The process of converting a private limited company to a public limited company involves several legal and regulatory requirements. The first step is to hold a board meeting to pass a resolution authorizing the conversion. This is followed by a general meeting of shareholders to pass a special resolution approving the conversion.
Once the approval is obtained, an application must be made to the Registrar of Companies (ROC) for the conversion. The application must be made in the prescribed form along with the required documents, such as the special resolution, altered memorandum of association, and articles of association.