Limited company to Private limited company, Corporate Laws / SEBI / LLP

[Pradip Sirsat]

Dear All,

kindly provide any notification regarding name change from Limited Company to Private limited company.what is applicability for limited company and Private limited company,

Thanks in advace

Pradip Sirsat

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Do you mean the conversion of Public limited company to Private Limited company?

[Pradip Sirsat]

yes sir, actually now we are working in LIMITED COMPANY and message come from our head office that our company name is change form Limited company to Private limited.

hence, i want to know why it is change?

[Naveed S]

The Most Important Reason for conversion of a limited company into an private limited company is on the tax front.

[Pradip Sirsat]

Naveed ji,

thanks for your reply, it will be very helpful for me if you give detail with example

[MARIAPPAN GOVINDARAJAN]

The private company has more privileges than the public limited company which may lead to the conversion of a public limited company to a private limited company. The compliance of Company Law is less than for the private companies than the public limited companies.

[Naveed S]

Sir, the benefits of private company are Tax benefits, exempt from surcharge and also not liable to pay Dividend Distribution Tax, Easy to manage and run, Less Government Intervention, Easy to dissolve or wind-up, Audit requirement only in case of contributions exceeding ₹ 25 lacs or turnover exceeding ₹ 40 lacs.

There are various and numerous reasons for such change; however the specific reason may be known from the company itself.

[MUKUND THAKKAR]

Due to frequently changes in company law. to avoid more government compliance. reverse route may be select.