Conversion of private ltd to llp

This query is : Resolved

SSOHAN R BAGGMAR (Querist)
Follow

10 September 2012 Dear Members

I would like to know w.r.t accounting treatments on Pvt Ltd getting converted to LLP:

1. Treatment of free reserves.Whether Frees reserves would be added to Partners Contribution??
2. Fixed Assets
3. If company has fixed assets like lan, building than whether Stamp Duty will be applicable.
4. Whether its advisable to convert a company with 300 crs plus turnover to convert itself into LLP.

Please give ur inouts on the same.

Regards

Ssohan

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
Follow

13 September 2012 1. As far as I know, it is only the paid up share capital of the company which gets converted into partners contribution on conversion into LLP. Free reserves are subject to minimum lock in period, refer to LLP Act and Rules for more details.

3. I don't think stamp duty would be applicable since it is only the case of conversion of company into LLP and not transfer by way of conveyance.