13 Dec 2017, 08:37 — 4 min read
Do you want to change your limited company to private limited company?
There are many companies looking for such a conversion. The main reasons are the relaxations available to a private company. However there are some legal bindings related to the conversion of a public limited into a private limited. This article presents guidelines for those limited companies who want to change their status.
The Companies Act, 2013, (Section 13 and 14) deals with the rules for conversion of a limited company to a private limited company. A public company may become a private company if its membership is within the limits in clause (68) of Section 2 of the Act, Hence, a company needs to pass a special resolution in a general meeting. Any alteration having the effect of conversion of a public company into a private company shall not take effect except with the approval of the Tribunal which shall make such order as it may deem fit. Such a company is required to take the following procedural steps:
Procedure to Change a Limited Company to a Pvt. Ltd
If ROC accepts the application for conversion, a fresh certificate of incorporation will be issued. To ensure that your application gets approved, be precise with the documentation.
Documents Required for Converting Public Limited Company into a Private Limited company
1. MGT-14 form should be submitted to the ROC along with the following documents:
2. INC-27 form should be submitted along with the following enclosures:
With the conversion of the limited to a private limited company, some changes are inevitable. You should adopt a new set of articles of association.
Immediately after the approval of the new status by ROC, certain formalities are required. You should apply for a new PAN number. Also, the stationery including letterhead should be changed accordingly. Printed copies of the new Memorandum and Articles of Association should be obtained.
It is also significant to inform concerned authorities like the bank, authorities like GST and other stakeholders regarding the change of legal status of your company. This will save you from unnecessary hassles in future.
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Posted byRavi Haresh Kariya
EbizFiling.com is a motivated and progressive firm managed by like-minded people. It helps a variety of small, medium and large businesses to cater to all compliance requirements...
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