Conversion of Private Company into a Public Company opens a whole new world  of opportunities, especially in the form of fundraising and reach of the market. The company can raise funds through Public Issue and accept deposits too. The conversion will be followed by the approval from MCA and alteration to MoA & AoA.

Further, a minimum of 7 members and 3 directors are required for conversion of Private Limited to Public Limited. The rights, liabilities, powers, and obligations remain the same for the company even after the conversion. Transfer of shares is possible as the restriction on transfer is removed on conversion.

Procedure for Conversion:

1. Calling of Board Meeting & issue Notice of  EGM 
2. Holding of Extra Ordinary General Meeting
3. Filing of e-Form MGT-14 with ROC within 30 days of passing  special resolution for conversion along with altered MOA & AOA & CTC of Board Meeting.
4. Filing of e-Form INC-27 application for conversion of Private Limited into Public Limited Company.

Private Companies enjoy many relaxations & benefits as compare to Public     Companies many Public Companies in order to enjoy such benefits converted into  Private Companies. Further, a minimum of 2 members and 2 directors are required for conversion of Public Limited to Private Limited. 

Procedure for Conversion:

1. Calling of Board Meeting & issue Notice of  EGM 
2. Holding of Extra Ordinary General Meeting
3. Filing of e-Form MGT-14 with ROC within 30 days of passing  special resolution for conversion along with altered MOA & AOA & CTC of Board Meeting.
4. Filing of e-Form INC-27 application for conversion of Private Limited into Public Limited Company.

Limited Liability Partnerships, LLP is a unique and new form of business that combines the advantages of both ‘Company’ and ‘Partnership’ in a single business entity. This was introduced in India in 2008 with the approval of the Limited Liability Partnership Act, 2008.

LLP is governed by the LLP Agreement executed by the Partners. It has lesser compliance requirements and it is easier to operate. It preserves the benefits of a partnership with providing security and credibility to a company. The conversion of Private limited to LLP must be followed by the approval of the Ministry by the online application providing necessary documents. Further, the operations and management come directly in hands of the LLP partner(s) unlike in Private Company where it is with the director(s).

Procedure for Conversion:

1. Convene a Board Meeting to pass resolution for Conversion of Company into LLP 
2. Reserve the Unique name using RUN-LLP on MCA.
3. File form for incorporation of LLP(FiLLiP)
4. File e-Form 18.
5. File Form 3 within 30 days of incorporation of LLP.

A new approach has been introduced in the Company’s Act 2013, about the One Person Company (OPC). A OPC  can be formed with just 1 Director and 1 member. Converting One Person Company to a Private Company can open avenues to pursue additional benefits such as fund raising. An OPC can voluntarily convert itself only after 2 years of its incorporation & it is mandatory for an OPC to convert into  Private Company in case paid-up  capital of OPC exceeds Rs. 50 Lakhs & average annual turnover of preceding 3 years exceeds Rs. 2 crores. With its conversion into Private Company, minimum 2 shareholders and directors must be appointed to fulfil the minimum requirement.

Procedure for Conversion:

1. Calling of Board Meeting & issue Notice of  EGM 
2. Holding of Extra Ordinary General Meeting
3. Filing of e-Form MGT-14 with ROC within 30 days of passing  the resolution for conversion along with altered MOA & AOA & CTC of Board Meeting.
4. Filing of Form INC-5 in case of Compulsory Conversion within 60 days of passing the resolution to ROC.
5. Filing of Form INC-6 in case of Voluntary Conversion within 30 days & in case of Mandatory Conversion within 6 Months of passing the resolution.