With this article, I will cover and explain in detail the concept regarding the conversion of the private limited company into an LLP. I will tell you about the Documents required, Eligibility, fees payable and Procedure for conversion of the private limited company into LLP or Limited Liability Partnership.
Eligibility For Conversion of Private Limited Company into Llp
A Private Limited Company can be changed over into an LLP or conversion of the private limited company into LLP can take place under the accompanying conditions:
- The organization has no security enthusiasm for its advantages at the season of use or the Private Limited company has no security interest in its assets at the time of application.
- The accomplices of the LLP will be nobody yet the investors of the organization or The partners of the LLP will be no one but the shareholders of the Private Limited Company.
The process of Conversion of Private Limited Company Into LLP
As every one of us knows that Companies Act-2013 came into drive w.e.f. 01st April 2014. Under Companies Act, 2013 there are especially compliances and numerous inconveniences, which are taken a toll expending for little undertakings. In this manner, Small endeavors are thinking to switch their Companies into Limited Liability Partnership (LLP’s) Firm.
- An enlisted constrained organization in India (Private or Public) has a ton of complex conventions and acquires extra overheads for overseeing undertakings including required executive gathering, support of statutory records, filling of e-shapes with MCA and so on. The nonattendance of such commands for LLP joined with points of interest, for example, non-relevance of profit appropriation assess on benefit repatriation, exchange of benefit manages and considered profit benefit issues, MAT arrangements (talked about beneath).
- In India, arrangement, enrollment, and direction of an LLP is only represented and controlled by the standards, arrangements, and controls gave in the LLP Act of 2008 and the LLP Rules of 2009. The Ministry of Corporate Affairs (MCA), Government of India, and its all around prepared web-based interface [www.llp.gov.in] is straightforwardly worried about setting up an LLP.
Fee Payable for Conversion of Private Limited Company into LLP
The charges payable for change or Conversion of private Limited Company into Llp are as per the following:
- LLP whose Contribution is restricted to Rs 1,00,000, Fees Payable will be Rs. 500.
- LLP whose contribution surpasses Rs 1,00,000 yet is restricted to Rs 5,00,000, Fees Payable will be Rs.2000.
- LLP whose contribution surpasses Rs 5,00,000 yet is restricted to Rs 10,00,000, Fees Payable will be Rs. 4000.
Documents Required for Conversion of Private Limited Company into LLP
The accompanying reports must be connected alongside the application for conversion of Private Limited Company into LLP:
- Assent of every one of the investors of the organization for the transformation of the firm into LLP in the given configuration or Consent of each of the shareholder of the company for conversion of the firm into LLP in the given format.
- Fuse report in Form 2 or Incorporation document in Form 2.
- Form 3 for utilization, declaration, and presentation of Incorporation of an LLP.
- Clearance/no-complaint authentication/ No objection certificate from assessing specialists or Tax Authorities.
- Articulation of Assets and liabilities from the organization or Statement of assets and liabilities from the company.
- Rundown or list of the considerable number of Creditors alongside their assent.
- Endorsement or approval from some other nation or country.
- Approval to make announcement or declaration.
- Discretionary connections, assuming any.
Conclusion for Conversion of Private Limited Company into LLP
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