Overview
The main purpose of converting an LLP to a Pvt Ltd is to improve the credibility, recognition, and flexibility of the business, and to secure investments and loans more easily.
Process
LLP to Pass a board resolution
Approval from the Registrar of Companies (ROC)
Amendment of LLP Agreement
Issuance of new certificate of incorporation
Changes to the company name
Filing of necessary returns
Eligibility
Minimum Partners:
The LLP must have a minimum of two partners to convert into a Private Limited Company. The LLP must first seek approval from all partners to initiate the conversion process. Furthermore, it should have a minimum of two shareholders and two directors, with one director being a resident of India, as required under the Companies Act, 2013.
No Unresolved Liabilities:
The LLP should not have any outstanding unsecured debts or must obtain written consent from creditors. The financial records of the LLP should also be in compliance with statutory audit requirements to avoid any complications during the conversion process.
Approval of Name:
The proposed name for the Private Limited Company must be approved by the Registrar of Companies (RoC). A name reservation is mandatory before proceeding with the conversion.
Compliance with Financial Reporting:
The LLP must submit its latest audited financial statements. These accounts should not be older than six days from the date of submission to the Registrar of Companies.
Certificate of Registration
" Taxation on the Conversion of LLP To Private Limited Company"
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The Conversion of Limited Liability Partnership (LLP) to a Private Limited Company (Pvt Ltd)could result in tax liability, however, certain tax exemptions may also be available.
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Therefore, it's highly recommended to consult our professional experts at Sure Tax Fincare, to ensure compliance with the regulations and laws.