Llc/llp

Hi, Although I am not competent to answer, I am just sharing some experiences. We were registered under LLP. . When we had proposal to get investments through  FDI route in to our company we had struggle to convert  LLP into Privated Limited Company for many financial implications and limitations.  Procedure involved lot of expense, and post conversion, getting so many licenses and registration changed to new nentity has  been very tough.  I should also mention to consider the cost involved in redocumentation for bank loans.

Please check.

shiva PRAKASH

 

There are some advantages and disadvantages in conversion of company into LLP:
Advantages:
* No borrowing limit
* Tax saving
* No B.M, AGM
* No audit(if turnover below 40lakh, contribution 25 lakh)
Drawback:
*Heavy penalty ( 100 per day)


PROCEDURE FOR CONVERSION OF PRIVATE COM INTO LLP:
FORM: LLP 1
ATTACHMENT: BOARD RESOLUTION FOR CONVERSION
FORM: LLP2(LINKED WITH LLP-18)
ATTACHMENT: CONSENT &SUBSCRIBER SHEET
ADFRESS PROOF OF REGISTERED
OFFICE OF LLP AND NOC
INTEREST IN OTHER ENTITY
CONVERSION LETTER
FORM:LLP 18
ATTACHMENT:
STATEMENT OF SHAREHOLDER
STATEMENT OF ACCOUNT
PAYMENT ACTION(ANNUAL FILING OF COM)
ITR COPY
IF CREDITOR THEN STATEMENT
FORM:LLP-3
ATTACHMENT
LLP AGREEMENT

For conversion some points also be taken into account:
All shareholder should be partner of LLP
Contribution should be same as paid up capital
If Bank charges exist in company then satisfy charge before conversion