The flying-capacitor (FC) topology is one of the more well-established ideas of multilevel conversion, typically applied as an inverter. One of the biggest advantages of the FC converter is the ability to naturally balance capacitor voltage. When natural balancing occurs neither measurements, nor additional control is needed to maintain required capacitors voltage sharing. However, in order to achieve natural voltage balancing suitable conditions must be achieved such as the topology, number of levels, modulation strategy as well as impedance of the output circuitry. Nevertheless this method is effectively applied in various classes of the converter such as inverters, multicell DC-DC, switch-mode DC-DC, AC-AC, as well as rectifiers. The next important issue related to the natural balancing process is its dynamics. Furthermore, in order to reinforce the balancing mechanism an auxiliary resonant balancing circuit is utilized in the converter which can also be critical in the AC-AC converters or switch mode DC-DC converters. This paper also presents an issue of choosing modulation strategy for the FC converter due to the fact that the natural balancing process is well-established for phase shifted PWM whilst other types of modulation can be more favorable for the power quality.