Public To Private Company
Public limited company can be converted into a private company by complying the provisions of section 18 of Companies Act, 2013.
The private company has less compliances as compared to a public company. Hence, leads to greater control in the company.
Advantages
- Report on AGM is not required.
- The control of the company is in the hands of the owner
- The private company can grant loans without taking prior approval from the Central government.
Procedure for Conversion
- Convene board meeting
- Hold General meeting to pass the special resolution for conversion of public company into private company and consent for alteration in memorandum and articles of association.
- File MGT-14 to ROC within 30 days from passing the special resolution.
- File RD-1 within 60 days of passing the special resolution to the Regional Director with required documents.
- Advertisement in INC-25A in a vernacular newspaper and in English newspaper.
- If the RD approves, then file INC-28 with the said order with ROC within 30 days from date of passing such order.