fbpx

What is a Private Limited Company To Llp?


 

Conversion of Private Limited Company to LLP is beneficial as it brings with it lots of tax benefits. LLP are taxed like general partnership firm, they are exempted from surcharge. Opting for LLP saves lot of maintenance cost. We at ccadvisors.in provide online assistance to convert your Private Limited Company into a Limited Liability Partnership. We guarantee highest quality standard backed by 100% customer satisfaction.

Our qualified team of legal professionals, chartered accountants and company secretaries are always available to assist you with all the legal and administrative aspects of the registration, drafting and conversion of Private Limited Company to a Limited Liability Partnership and post registration aspects that are required to be fulfilled to convert Private Limited Company to an LLP. To change from Private Limited Company to Limited Liability Partnership you would be required to follow certain quick and easy steps and provide CCA with the required documents and we would convert your Pvt. Ltd Co. to LLP.

Subject matter experts are available on call or via email to answer your queries. We also provide a full spectrum of post conversion services related to SSI/MSME Registration, GST Registration, Service Tax Return Filing, TDS Return Filing, Trademark Registration, objection, assignment & renewal, Copyright registration, Bookkeeping, Legal Drafting, Accounting, Import Export Code registration etc. We offer services through an online model and a network of trusted affiliates across all major cities in India including Mumbai, Delhi, Ahmedabad, Pune, Bangalore, Hyderabad, Vadodara, Kolkata, Chennai, Noida, Gurgaon, Surat, Rajkot and others.

Benefits of Private Limited Co. to LLP Conversion


 

Rewards and returns to partners

The partners of the LLP receives multiple returns, such as remuneration, the share of profit, and also the interest on capital. The remuneration is paid for active participation by partners, whereas the share of profit is part of the profit generated from business activities.
crown

Independent liability

No partner is liable on account of the unauthorized actions of other partners. Thus, individual partners are shielded from the burden of joint liability created by another partner’s wrongful business decisions or misconduct.
people

Less Statutory Compliance

The compliances to be fulfilled are less as compared to a Private Limited Company. An LLP is not required to maintain statutory records & registers. The requirement of a statutory audit is also relaxed in case of LLP.
capital

Operational Flexibility

The partners are directly associated with the day-to-day operations and management of LLP. Unlike a company, LLP is governed through the LLP Agreement which is executed mutually by the partners.

Documents Required for Proprietorship to Private Limited Co. Conversion India


 
 
 

How to Convert Pvt. Ltd. Co. to LLP Online with CCA?

1. Fill the form given on the right

2. Select your package

3. Fill the company details

4. Pay the amount & done

Once you done, our expert will contact you.

 

 

Frequently Asked Questions

1What is the capital required to start a Limited Liability Partnership?
A limited liability partnership can be started with any amount of capital. A partner's tangible or intangible assets can be counted as a benefit to the LLP.
2How many people are required to incorporate a Limited Liability Partnership?
To incorporate a Limited Liability Partnership, a minimum of two people are required. A Limited Liability Partnership must have a minimum of two Partners and can have a maximum of any number of Partners.
3What are the requirements to be a Partner in a LLP?
The Designated Partners needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, the LLP Act 2008 allows Foreign Nationals including Foreign Companies & LLPs to incorporate a LLP in India provided at least one designated partner is resident of India.
4What are the documents required for incorporation of LLP?
For Indian citizens, a PAN card is required. Address proof and identity proof is also mandatory. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
5 What are the basic conditions for converting Private Limited Company to LLP?
Following are the conditions for conversion: – All the members of the Company shall become the partners of the LLP on conversion. – No security interest in the assets of the company should be subsisting or in force on the date of conversion i.e. the assets are free of any encumbrance. – Up-to-date Income-tax return has been filed under the Income-tax Act, 1961. – Any clearance, approval or permission for conversion of the company into Limited Liability Partnership, if required from anybody/ authority, etc. has been obtained.
6 Do we need to execute any instrument for transferring the assets & liabilities on conversion of company into LLP?
On conversion of the Company/partnership into LLP, all tangible (movable or immovable) and intangible property vested in the company, all assets, interests, rights, privileges, liabilities, obligations relating to the company/firm and the whole of the undertaking of the company shall be transferred to and vest in the Limited Liability Partnership without further assurance, act, or deed.
7 What are the annual compliance requirements for LLP?
LLPs are required to file an annual filing with the Registrar each year. However, if the LLP has a turnover of fewer than ₹40 Lakhs and/or has a capital contribution of fewer than ₹25 Lakhs, the financial statements needs no auditing.
8What is the difference between LLP and a company?
A basic difference between the LLP and a company lays in the internal governance structure. The LLP has more flexibility and less compliance requirements compared to a Company.
9Can NRIs / Foreign Nationals be designated Partners in a LLP?
Yes, the LLP Act 2008 allows Foreign Nationals including Foreign Companies & LLPs to incorporate LLP in India, provided at least one designated partner is resident of India. However, the LLP/Partners would have to comply with all the relevant Foreign Exchange Laws/ Rules/ Regulations/ Guidelines.
10 Whether any capital gain is payable on conversion of Company into LLP?
In case of conversion to LLP, the decision regarding capital gain, whether applicable or not, is subject to certain conditions. Any transfer of the capital asset or intangible asset or shares held in the company by a shareholder as a result of the conversion of the company into a Limited Liability Partnership would not be subject to Capital Gain. But if there is a change in shareholding i.e. change in the profit sharing ratio and benefit arises from the conversion, then the capital gain would be payable.
11What effect the conversion has on Permits or licenses issued to the Private Limited Company?
In most cases, the terms of the license become the deciding factor whether or not they can be transferred. Otherwise, fresh GST registration or FSSAI registration would have to be obtained by the promoters.
12 How can I get the PAN and TAN in the name of LLP?
The application of PAN and TAN in the name of LLP shall be applied after the issuance of Certificate of Incorporation of LLP. The physical copy of the PAN will be received at the Registered Office only after being dispatched by the Income Tax Department.
13 What are the requirements and consequence provided in the Act in respect to the licences, permits, approvals etc. obtained by the company prior to its conversion into LLP?
It has been provided in the Act that on conversion, any approval, permit or license issued to the Private Company under any other Act shall; subject to the provisions of such other Act under which such approval, permit or license was issued, be transferred in the name of converted entity viz. LLP. Barring some registrations like GST or which a new application needs to be filed.
 

More Questions?

Contact us for additional assistance

 

More Questions?

Contact us for additional assistance