Education and Career Forum

What is the different between private or public listed company and any Public company can convert into a Limited liability company and if it can than what is the procedure of it's conversion ?

Public company is basically company which offers its sales to the general public.For this process this Public sector company may use Market makers,stock exchanges and more.Public owned company is liable to raise the funds and the capital through the sale of the securities.Public companies are also offered as public held company,limited liability company and which basically depends on the local legislation and the size.

Where as Private company differs with the Public company.The company whose ownership is absolutely private then it is basically termed as Private company.The basic advantage for this private companies is that ,it does not need to meet the exchange commission and strict securities filing the requirements of a public sector companies.Basically private companies may generally issue stock as well as it contains shareholders.So their shares do not generally trade on the public exchanges.

To convert the Public company to Limited Liability partnership you must follow the below procedure.First you need to decide the partners and the designation of the partners.Then you need to obtain the Director identification number and the digital signature.Soon after getting this check the name availability for LLP.Then drafting of LLP agreement,then fill the incorporation document.So then you must now fill the conversion application as well as go for the certificate of registration.You may obviously get the information for conversion to the Registrar of Firms.This way you can convert in to the Limited liability.