CONVERT PVT LTD TO LLP



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CONVERT PVT LTD TO LLP

After introduction of Limited Liability Partnership Act, 2008 the traditional Private Limited Companies have started converting themselves to Limited Liability Partnership (LLPs) for obvious reasons of Tax benefits, MAT Provisions, saving of dividend distribution tax, minimum compliances etc.

The condition of conversion of Private Limited to LLP is that all the share holders of Private Limited Company should be added as Designated Partners of LLP. Share Holders of a Private Limited Company are not required to have Directors Identification Number (DIN) or Digital Signature Certificate (DIN). But all the Designated Partners are supposed to have DPIN and DIN.  

CONVERT PVT LTD TO LLP

  • Provisions of Minimum Alternate Tax (MAT) are applicable only to Companies and provisions of MAT are not applicable to LLPs.

  • For distribution of profits the Companies are required to pay Dividend Distribution Tax (DDT). LLP is not supposed to pay DDT.

  • There are minimum compliances for LLP unlike Companies where they need to manage many statutory records.

  • All the assets of Private Limited Companies are deemed to be the assets of LLP.

  • There is no Stamp Duty payable on transfer of assets of Private Limited Company to LLP

  • There is no Capital Gain Tax on transfer of assets from Private Limited Companies to LLP on conversion.

  • Accumulated losses and unabsorbed depreciation of Private Limited can be transferred to LLP and LLP can carry forward those losses for eight years.

CONVERT PVT LTD TO LLP

Process

01

Consulting

Company Law expert from MyEfilings will consult you about conversion of Private Limited to LLP.

02

Documentation

We will prepare the documents related to conversion of Private Limited to LLP and apply for LLP Name Approval

03

Conversion

Post name approval and getting final documents, resolutions ect for conversion of Pvt Ltd to LLP, we will apply for conversion

04

Approval

If the MCA finds all the documents in order, the conversion of Pvt Ltd to LLP will be approved. We will track status and keep you informed.




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