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The conversion of a company into an LLP involves changing the legal structure of an existing company to a Limited Liability Partnership. An LLP combines the benefits of a company (limited liability) and a partnership (flexibility in management and taxation). The conversion of a company into an LLP involves changing the legal structure of the business entity to operate as an LLP. An LLP combines the benefits of a company and a partnership, providing limited liability to its partners and allowing flexibility in management and tax implications.
The process of converting a private company into an LLP requires complying with the provisions of the Limited Liability Partnership Act, 2008, and obtaining approval from the Registrar of Companies (RoC). The conversion allows the company to retain its assets, liabilities, and business operations within the new LLP structure.
Step 1: Obtain Digital Signature Certificates (DSCs) and Designated Partner Identification Numbers (DPINs) for the proposed partners of the LLP.
Step 2: Prepare and file the e-Form 18 with the Registrar of Companies (RoC) to seek approval for the proposed conversion. The form should include necessary details such as the name, registered office address, and financial statements of the company.
Step 3: Prepare and file the e-Form 2 with the RoC for reservation of the name of the proposed LLP.
Step 4: Draft the LLP agreement outlining the rights, duties, and obligations of partners and file it using e-Form 3 with the RoC.
Step 5: Once the RoC approves the forms and documents submitted, a Certificate of Registration is issued, indicating the conversion of the company into an LLP.
The conversion of a company into an LLP may have income tax implications. When a company is converted into an LLP, the assets and liabilities are transferred at book value. From an income tax perspective, this transfer may trigger tax implications, such as capital gains tax, if the assets are transferred at a higher value than the book value. It is advisable to consult a tax professional to understand the specific income tax implications of the conversion. From an income tax perspective, the conversion of a company into an LLP may have implications, including the transfer of assets and liabilities, carry forward and set-off of losses, and tax treatment of capital gains. It is advisable to seek professional advice from a tax expert to understand the specific income tax implications and requirements related to the conversion.
Converting a business into an LLP involves transforming the existing business entity, such as a sole proprietorship or partnership, into an LLP structure. The process includes registering the LLP with the appropriate authorities, transferring assets and liabilities to the LLP, and complying with the legal requirements of the LLP Act. Converting a business into an LLP involves a similar process as converting a company into an LLP. The necessary steps include obtaining partner identification numbers, filing the required forms with the RoC, and preparing the LLP agreement. This conversion allows for the continuation of the business under the LLP structure with limited liability for the partners.
The conversion of a company into an LLP may attract stamp duty. The stamp duty requirements vary across states in India. The specific stamp duty charges for the conversion should be checked with the concerned state authorities or a professional service provider. The conversion of a company into an LLP may attract stamp duty, which varies based on the state where the registered office of the company is located. Stamp duty is levied on the LLP agreement and other relevant documents filed during the conversion process. The exact stamp duty rates and requirements can be obtained from the respective state's stamp duty authorities.
The documents required for the conversion of a company into an LLP typically include:
LLP Agreement: Drafting and execution of the LLP Agreement, which outlines the rights, duties, and obligations of partners and the LLP structure.
Statement of Assets and Liabilities: Preparation of a statement of assets and liabilities of the company to be transferred to the LLP.
Consent from Creditors: Obtaining consent from creditors, if required, for the proposed conversion.
No Objection Certificate (NOC): Obtaining a No Objection Certificate from any authority, lender, or any other person whose consent may be necessary.
Board and Shareholder Resolutions: Passing resolutions by the board of directors and shareholders of the company approving the conversion and authorizing necessary actions.
Application for Conversion: Filing an application for conversion with the RoC in the prescribed format, along with the required fees.
The documents required for the conversion of a company into an LLP typically include:
LLP Agreement: Drafted to outline the rights, duties, and obligations of the partners of the LLP.
Consent of Partners: Obtained from the existing shareholders or partners of the company, expressing their consent to become partners of the converted LLP.
Financial Statements: Copy of the audited financial statements of the company for the preceding financial year.
No Objection Certificate (NOC): Obtained from secured creditors, if applicable.
Resolution: Copy of the resolution passed by the shareholders or partners approving the conversion.
Forms: Various e-Forms as prescribed by the Ministry of Corporate Affairs (MCA), such as Form 18, Form 2, and Form 3, for filing with the RoC.
It is advisable to consult a professional or legal expert to ensure that all necessary documents are prepared and submitted accurately.
In Delhi, various professional service providers, including chartered accountants, company secretaries, and legal firms, offer services related to the conversion of a company into an LLP. These services include assistance in the preparation of necessary documents, filing of applications with the RoC, legal compliance, and advisory support throughout the conversion process. It is advisable to research and engage a reliable service provider in Delhi with expertise in company law and LLP regulations.
Please note that the conversion process may have specific requirements and may vary based on the circumstances and jurisdiction. It is recommended to seek professional advice and consult the relevant laws and regulations before initiating the conversion process. In Delhi, there are several professional services available to assist with the conversion of a company into an LLP.
These services include legal and accounting firms, company secretaries, and business consultants who can provide guidance, assist in preparing the required documents, and help with filing the necessary forms with the RoC.
It is recommended to research and engage a reputable service provider who has expertise in company law and LLP conversions to ensure a smooth and compliant conversion process.
Expertise and Experience: We have professionals who have years of experience and expertise in Convert Company Into LLP. They can guide entrepreneurs on the latest legal requirements and offer the best advice for their business.
Saves Time and Effort: Convert Company Into LLP can be a time-consuming and complicated process. We simplify the process by handling all the paperwork and procedures, allowing entrepreneurs to focus on their core business activities.
Cost-Effectiveb: Hiring SV Associates for Convert Company Into LLP can be cost-effective in the long run. We offer packages that include all services required for Convert Company Into LLP, which can save money compared to hiring different professionals for each service.
Legal Compliance: We ensure that entrepreneurs comply with all legal requirements post-incorporation. This reduces the risk of legal hassles and penalties in the future.
We at SV Associates offer services to help enterprises with the registration process and manage their business operations effectively. By availing these services, enterprises can focus on their core business activities and leave the non-core activities to the experts.
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