What is Company Conversion?
Conversion of a company is the process of changing its status by altering its Articles (and Memorandum) under Section 14 of the Companies Act, 2013 so that they either remove or include the restrictions that define a private company in Section 2(68). The company continues as the same legal entity, and the Registrar issues a fresh Certificate of Incorporation that reflects the new status and name.
A private company restricts transfer of its shares, limits its members to 200 and cannot invite the public to subscribe to its securities. A public company has no such restrictions, needs at least seven members and three directors, and must follow stricter governance. When a private company converts to a public company, it must therefore satisfy those requirements, and its securities must be dematerialised after conversion.



