diff --git a/.gitignore b/.gitignore
index fa3665d..ecaa071 100644
--- a/.gitignore
+++ b/.gitignore
@@ -35,6 +35,7 @@ tmp-php.ini
 # General Ignores
 *~
 .#*
+*.dep
 *.
 *.slo
 *.mk
diff --git a/README b/README
deleted file mode 100644
index 178c241..0000000
--- a/README
+++ /dev/null
@@ -1,5 +0,0 @@
-A documentation how to install a PECL-Extension is available in the PHP-Manual http://www.php.net/manual/en/install.pecl.php
-
-The extension documentation is now available in the PHP-Manual: http://php.net/manual/en/book.gnupg.php
-
-The extension supports only gnupg version 1 and the version 2 is not currently supported. It should be fixed in the extension version 1.5.
diff --git a/README.md b/README.md
new file mode 100644
index 0000000..fb93ff1
--- /dev/null
+++ b/README.md
@@ -0,0 +1,60 @@
+# PHP GnuPG
+
+The php-gnupg is a wrapper for GpgME library that provides access to GnuPG.
+
+
+## Installation
+
+### Linux
+
+Before starting with installation of this extensions, the `GpgME` library has to be installed. It
+has got installation packages on the most Linux distributions. The minimal version of GpgME that
+is supported is 1.3.0. The extension supports GnuPG version 1 and 2.
+
+Of course PHP has to be installed too. The minimal version that is supported is 5.3.2.
+
+#### PECL
+
+This extension is available on PECL. 
+
+```
+$ sudo pecl install gnupg
+```
+
+#### Manual Installation
+
+It's important to have a git installed as it's necessary for recursive fetch of
+[phpc](https://github.com/bukka/phpc).
+
+First clone recursively the repository
+```
+git clone --recursive https://github.com/php-gnupg/php-gnupg.git
+```
+
+Then go to the created directory and compile the extension. The PHP development package has to be
+installed (command `phpize` must be available).
+```
+cd php-gnupg
+phpize
+./configure
+make
+sudo make install
+```
+
+Finally the following line needs to be added to `php.ini`
+```
+extension=gnupg.so
+```
+or for PHP 8+ it's just
+```
+extension=gnupg
+```
+
+### Windows
+
+The extension is not currently supported on Windows due to unavailable GpgME library builds that
+would be supported by PHP.
+
+## Documentation
+
+The extension documentation is now available in the PHP-Manual: http://php.net/manual/en/book.gnupg.php
diff --git a/UPGRADING b/UPGRADING.md
similarity index 76%
rename from UPGRADING
rename to UPGRADING.md
index f60cfe3..569bcff 100644
--- a/UPGRADING
+++ b/UPGRADING.md
@@ -1,8 +1,11 @@
-PHP GNUPG UPGRADING NOTES
+# PHP GnuPG Upgrading notes
 
 This document lists backward incompatible change in the extension
 
-1.4.0
+## 1.5.0
+- no backward incompatible changes
+
+## 1.4.0
 - gnupg_decryptverify $plaintext reference can no longer be passed in
   call_user_func_array which is conformant to user space code.
   See https://github.com/php-gnupg/php-gnupg/issues/4 for more details.
diff --git a/package.xml b/package.xml
index e4ef51d..ac6a9da 100644
--- a/package.xml
+++ b/package.xml
@@ -53,8 +53,8 @@
    <file name="php_gnupg_keylistiterator.h" role="src" />
    <file name="php_gnupg.h" role="src" />
    <file name="php_gnupg_keylistiterator.h" role="src" />
-   <file name="README" role="doc" />
-   <file name="UPGRADING" role="doc" />
+   <file name="README.md" role="doc" />
+   <file name="UPGRADING.md" role="doc" />
    <dir name="phpc">
     <file role="src" name="phpc.h"/>
    </dir>
@@ -101,7 +101,7 @@
  <dependencies>
   <required>
    <php>
-    <min>5.2.0</min>
+    <min>5.3.2</min>
    </php>
    <pearinstaller>
     <min>1.4.0b1</min>