Conversion of public company into private company

    - Suitable for Medium Scale Business
    - Hassle free, conversion process provided by professionals
    - Get the work done in 2-3 months.

Register

refresh
Documents Cost Process FAQs

Conversion of public company into private company

As we are aware that the private companies have lesser number of compliances as compared to public limited company, therefore primary reason for going with conversion of public company into private company is that it provides lesser compliances, smooth operation of the company with lesser interference from shareholders and various exemptions provided to the private companies provided under companies act 2013. Earlier the conversion approval was granted by the NCLT, but in the year 2018 with the amendment, the power has been shifted to the Regional director (RD). Public company to private company conversion is a very cumbersome process as it not only involves alterations in MOA and AOA and dealing with all creditors of the company but also liaisoning with various government authorities and involved many appearances in RD. Special resolution of the members and NOC from all the creditors needed to be obtained before filing the conversion application to the RD. The authority has the final discretion whether to grant the approval of conversion or not. At Unilex Consultants we provide you a hassle free conversion of public company into private company which would be dealt by our experienced professionals within a time frame. Our team takes care of the documentation and aids in provide you the realistic estimation of cost.

Advantages of Conversion of public company into private company

1

Lesser compliances as compared to private company.

2

Lesser interference of stakeholders.

3

Smooth operations of the company.

4

Various exemptions under companies act 2013 for private companies.

Documentation for Conversion of public company into private company

Latest financial statements

MOA and AOA

List and affidavit from creditors

Affidavits from Directors

Various signed resolutions

Signed vakalatnama

Process involved in registering a Conversion of public company into private company

1

Preparing Board meeting and EGM documents, notices and resolutions

2

Alteration of MOA & AOA, and filing requisite e forms to ROC

3

Filing petition to RD within 60 days of passing of SR

4

Advertisement in 2 newspapers

5

Sending notices to creditors, ROC

6

Getting order and filing the requisite form with the ROC.

Under what circumstances RD may reject conversion application.

    RD may reject the application if it is not in the interest of Creditors and/or shareholders.
    If application is made only to contravene or avoid any debt/liability of creditors or other stakeholders.
    If against public interest and morality.
    If frivolous petition made just to evade or contravene any provisions of the law.

FAQs About Conversion of public company into private company

How much time conversion of public company to private company takes?
As it is a very cumbersome process, it usually takes approx. 4-5 months to get the approval from the authority
Does advertisement in conversion is necessary?
Yes, it should be in two newspaper atleast 14 days before date of hearing.
Minimal Capital involved in registering as a private limited ?
There is no Set capital required as mentioned by 2013 governmental laws, if there is a additional capital involved we can sort it out via additional stamp duty.
What are the advantages of Private Company Registration?
Limited liability which literally translates to if anything does not goes by plan it only affects the specific persons stakes of share not the actual company as they are separately liable. Continuity of Existence even after the transfer of shares or unfortunate event of death of any director. In funding point of view private limited works out the best in getting the attention of Venture Capitalist (VC’s). Has an upper hand in terms of TAX advantages. Provides more exposure and credibility. Simplified process.
Can RD disallow the public company to private company conversion?
Yes, it is the discretion of the RD whether to allow or disallow the conversion.

Why choose Unilex?

Well with highly qualified professionals in our team along with the technology gives edge over others, as a result highly rated professional services with full customer satisfaction is assured. We help to grow and manage your business letting you to concentrate on your business.

MSME Registered

Unilex is registered with the Ministry of Micro, Small & Medium Enterprises (MSME), a part of Government of India.

ISO 9001:2015 Certified

Unilex is a ISO certified body, assuring the quality professional services to aspiring startups

Money Back Guarantee

Subject to our terms and conditions, money back is guaranteed if we failed to give 100% customer satisfaction

Google Partner

Unilex is a Google Partner. Google Partners are tasked with helping businesses market their service or products online.

900+

Satisfied Enterprenuers

500+

Team Strength

10 years+

Professional experience

2000+

Services delivered

Learning center

Learning never stops

Get yourself updated with various start-up/Entrepreneurship laws applicable in India. Dive into our well written articles/blogs by our experts and get more information on government regulations and company rules and regulations.

Start Learning