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Liquidation vs Conversion into LLP
I am a director in a company (public unlisted). We( All the member and directors) wanted to liquidate the company. But our CA is suggesting to first convert the company into LLP and then to dissolve the LLP after 3-4 years. Is it beneficial to Convert and liquidate after 4 years or not convert and liquidate now? please help!
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Converting to an LLP can be tax-efficient if you meet strict turnover and asset thresholds; otherwise, it may trigger capital gains tax. Liquidation is a permanent exit but carries its own tax and regulatory settlement requirements. Discuss the specific reasoning behind the "convert first, then dissolve" strategy with your CA to ensure it aligns with your long-term goals.
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