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Conversion of proprietorship bussiness to LLP

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TAUQIR KHAN

84 Points Posted on 07 April 2023

I am running a wholesale and retail buisness of medicines as a proprietor in the name of GOODWILLMEDICALS. Now I wish to form a LLP. Is it possible to convert GOODWILL MEDICALS and form a LLP . Will I require a diffrent GSTN and drug licence or old GSTN and Drug licence will be incorporated in LLP. What is procedure?
thanks

Replies (3)

Quick Summary

This discussion covers the conversion of a proprietorship business, GOODWILL MEDICALS, into a Limited Liability Partnership (LLP). Key questions addressed include the possibility of conversion, the need for a new GSTN, and the implications for the existing drug licence. The advice suggests a new GSTN will be required, with the existing business potentially being sold to the LLP. Transferring unutilised GST credit via FORM ITC-02 is also mentioned, though the drug licence validity requires expert consultation.

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Posted on 07 April 2023

You will need a different GSTN for running a LLP. The existing business could be sold to the LLP and the same is exempt vide sl. no. 2 of notification 12/2017-CTR. Unutilized credit could also be transferred to the LLP by filing FORM ITC-02. Not sure with regard to the validity of drug licence. Suggested to consult and expert in that area.