Business Entity Conversion

Service Details:

Partnership to LLP

A Limited Liability Partnership (LLP) can prove to be a much better business vehicle than a regular partnership. Partners aren't disadvantaged by personal liability and the LLP does away with the excessive regulations of the Indian Partnership Act, 1932. Furthermore, there are tax benefits, no audit requirements below a certain capital, no cap with regard to number of partners or capital contribution requirements.

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Private to Public Limited Company

It's great news that you're looking to go public. The process to convert from private to public limited company is simple, but will take 30 to 35 days to complete, as there are many steps involved. First you need to alter the articles of association, then delete the word private from your name, commence the registration process and finally wait for the certificate of commencement of business. Do note, however, that some requirements and charges will depend on whether or not you already have three directors, seven members (shareholders) and a paid-up capital of Rs. 5 lakh (all are necessary for a public limited company).

Advantages of Public Limited Company

Quick Share Transfer

Shareholders of a public limited company can transfer their shares with great ease. All they need to do is file the share transfer form and hand over the share certificate to the buyer. The process of transfering your share in other business structures is hugely tedious.

Raise Capital

The big advantage of the public limited structure is that you can leverage it to raise capital from the general public through shares. This would, however, require listing on a stock exchange. All public limited companies can issue fixed deposits, debentures, convertible debentures to the general public.

Greater Credibility

Public limited companies need to disclose their audited statement of accounts, inform the regulatory bodies of any structural change and hold annual general body meetings for all shareholders. It's tedious but these compliances bring a public limited company a great deal of credibility to the organisation.