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Conversion of LLP into Private Limited Company With Tax and Services

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Introduction of Set-up of Indian Subsidiary

“Tax and Services,” your trusted partner in legal matters. At “Tax and Services,” we understand that the business landscape is dynamic, and your company’s structure may need to evolve to meet changing needs. One such transformation that businesses often consider is the conversion of a Limited Liability Partnership (LLP) into a Private Limited Company.

As businesses grow and expand, the shift from an LLP to a Private Limited Company can offer a range of strategic advantages. Whether you are seeking enhanced fundraising capabilities, a more defined corporate structure, or increased business opportunities, our team of seasoned legal professionals is here to guide you through the seamless conversion process.

Our comprehensive services encompass every aspect of the LLP to Private Limited Company conversion, ensuring compliance with the regulatory framework and minimizing disruption to your business operations. We pride ourselves on delivering tailored solutions that align with your specific business objectives, providing you with the confidence to navigate the complexities of this legal transition.

At “Tax and Services,” we prioritize efficiency, transparency, and accuracy in all our endeavors. Our expert team will work closely with you to understand your unique requirements, offering personalized advice to facilitate a smooth conversion. From documentation and regulatory filings to compliance checks and legal formalities, we’ve got you covered at every step of the way.

Advantages of Conversion of LLP into Private Limited Company

Limited Liability Protection

One of the primary advantages of converting an LLP into a Private Limited Company is the enhanced limited liability protection it offers to the company's shareholders. In an LLP, the liability of partners is limited to their agreed-upon contribution, but in a Private Limited Company, the liability of shareholders is limited to the extent of their shareholding. This means that personal assets of shareholders are protected in case of business debts or legal issues.

Money

Private Limited Companies have greater avenues for fundraising compared to LLPs. It is often easier for a Private Limited Company to attract investors and raise capital through equity or debt financing. The issuance of shares allows for a more organized and transparent structure when bringing in external investment, facilitating business growth and expansion.

Increased Credibility

Converting to a Private Limited Company can enhance the credibility of your business in the eyes of clients, customers, and partners. Private Limited Companies are perceived as more stable and trustworthy entities, which can be crucial when entering into business contracts, partnerships, or attracting clients who prefer dealing with established corporate entities.

Perpetual Succession

Private Limited Companies enjoy the concept of perpetual succession, meaning the company continues to exist even if there are changes in ownership or the death of shareholders. This provides stability to the business and ensures its continuity, irrespective of any changes in the composition of the company.

Tax Benefits

Private Limited Companies are often eligible for certain tax advantages that LLPs may not enjoy. The corporate tax rates and exemptions available to Private Limited Companies can result in potential tax savings, contributing to increased profitability and financial efficiency.

Ease of Transferability

Shares of a Private Limited Company are easily transferable, allowing for a smooth transfer of ownership. This flexibility in ownership can be beneficial for succession planning, attracting new partners, or accommodating changes in the ownership structure of the company.

Minimum Requirements

Documents Required for Conversation of LLP into Pvt. Ltd.

Pan Card and Aadhar Card of Partners

Photograph of partners

LLP Agreement and Certificate of Incorporation

Latest ITR of LLP

Statement of Assets and Liabilities (Latest)

Cutting of newspapers advertisement

NOC from all the creditors, if any

Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof Rented/leased: (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Process for Conversion of LLP into Private Limited Company

Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team.
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Step 01

Document Processing

At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
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Step 02

Name Availability

The next step is check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days. The consent of partners have to be taken for the application.
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Step 03

Newspaper Advertisement

We will provide the format for the newspaper advertisement which shall be published in a newspaper in English and in any vernacular language, circulating in the district in which Limited Liability Partnership is situated.
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Step 04

E-filing for conversion into LLP

Once the name is approved, and no objection has been received for such conversion, an online application will be filed along with the requisite documents as obtained from the client with ROC in FORM URC-1 along with Spice+. The MOA as well as AOA shall be filed along with it. This process again takes approximately 2-3 days.
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Step 05

Get Certificate of Incorporation

Once the Company gets incorporated we will share all the docs like Incorporation Certificate, MOA , AOA and Digital Signatures.
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Step 06

More insights on conversion of LLP

  1. LLP Formation Expertise:

    • Specialized assistance in the seamless formation of Limited Liability Partnerships (LLPs), ensuring compliance with legal requirements.
  2. Tailored Advisory Services:

    • Personalized consultations to guide clients through the intricacies of LLP conversions, offering insights tailored to their specific business needs.
  3. Legal Compliance Assurance:

    • Thorough examination and adherence to legal protocols during the LLP conversion process, minimizing risks and ensuring a smooth transition.
  4. Document Drafting Proficiency:

    • Expertise in drafting all necessary legal documents essential for LLP conversion, ensuring accuracy and completeness in accordance with regulatory standards.
  5. Tax Optimization Strategies:

    • Implementing tax-efficient structures during LLP conversion, maximizing benefits and minimizing liabilities for enhanced financial optimization.

 

  1. Transparent Cost Structures:

    • Providing clear and transparent cost breakdowns, ensuring clients are fully informed about the financial aspects of the LLP conversion process.
  2. Efficient Timelines:

    • Streamlined processes and efficient timelines for LLP conversions, minimizing disruption to business operations and enabling a prompt transition.
  3. Post-Conversion Support:

    • Continued support post-conversion, addressing any queries or concerns that may arise, and ensuring ongoing compliance with legal and regulatory obligations.
  4. Experienced Legal Professionals:

    • Access to a team of seasoned legal professionals with a proven track record in successfully facilitating LLP conversions across diverse industries.
  5. Client-Centric Approach:

    • A commitment to a client-centric approach, focusing on understanding individual business goals and tailoring LLP conversion strategies accordingly.
 
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