For first time entrepreneurs, a private limited company holds a big place. It gives them a way to gain more funds. Its structure is suitable for almost any kind of business in India. That being said, when you see at some of the old business like Earnest and Young, you notice that it’s an LLP. For anyone who cares, it’s a global Fintech organization that has been active for decades.
Such phenomena can make one think of converting a private limited company into an LLP. If you think the same, we are presenting you with the steps to do so.
Documents required to convert PVT ltd to LLP
- Signed consent from shareholders of the company to convert Pvt ltd company into LLP
- Incorporation document
- Application and declaration of LLP incorporation
- No objection/no dues certificate from tax authorities.
- Statement of assets and liabilities from the company
- List of creditors of the company, along with their signed consent
- Authorization required to make the declaration
- Additional documents related to the type of business.
Conversion of PVT Ltd to LLP
The process to convert Pvt ltd to LLP will eradicate the identity of a company. At the same time, it will transfer the name to an LLP. The procedure contains the following steps:
- Conduct a board meeting with all the shareholders present on the resolution of converting the company into an LLP.
- Get the shareholder’s consent to convert the company
- Get the no-objection certificate from tax authorities
- Get the consent from the creditors
- Get the statement of assets and liabilities
- File a petition to convert Pvt ltd into an LLP to the tribunal.
- File the application to incorporate an LLP.
- Once the LLP is incorporated, make the registrar aware of the conversion within 15 days.
- Get the certificate of registration of LLP issued.
Effects of the conversion of Pvt ltd company to LLP
When you convert your private limited company into an LLP, the following effects take place:
- Dissolution of a private limited company
- Removal of a private limited company from the Company Registry
- Transfer of all the assets, interest and liabilities, privileges and obligations to the LLP
- Transfer of all the licenses and permissions that were issued to the private limited company to the LLP.
For further details about LLP registration or conversion from Pvt Ltd to LLP, contact our experts.