Conversion of Pvt Ltd Company to a LLP

This query is : Resolved

Mohith Guptha (Querist)
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06 March 2026 Dear Sir/Madam,

There 3 Pvt Ltd Companies names A, B & C, B & C hold 50% share each in company A, both B & C have 2 directors each in the company, and these 4 directors along with 2 other directors totalling to 6 directors in company A.

There are NO transactions in company B & C (NIL), all the transactions are done in company A only, but ROC filing, audit and all is done for all the 3 companies.

Below mentioned are my questions, request to clarify and guide me:

1. If B & C are converted to LLP from Pvt Ltd company, will there be any problem in company A.

2. In future if we want to wind up these 2 companies, then what will be the complications and compliances.

3. Any tax is applicable and how is shares of directors transferred to company A directors, and any legal tax complications and implications.

Request to kindly guide us on the above points.

Thanks in advance.

Regards
Guptha

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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06 March 2026 Since B and C are currently just "pass-through" entities for holding shares, converting them to LLPs will immediately stop the requirement for a statutory audit (unless turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh), significantly reducing your yearly costs.

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