LLP vs Company
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!
Replies (1)
Converting a company to an LLP is often suggested to save on administrative costs and compliance effort during a long wind-down period. However, it is only beneficial if the savings outweigh the conversion costs and if you do not have significant tax losses that would be forfeited. You should evaluate the upfront legal fees versus the annual maintenance costs of the company, and ensure you meet the eligibility criteria (e.g., no pending charges) before proceeding.
Recent Topics :
- Pan surrender via online
- EPFO Portal Issue – Unable to Save Employee
- Plant & Machinary
- ITC reversal after supplier amended the recipient
- GIFTS TO USEFUL CONTACTS ON FESTIVALS INCOME TAX
- INTEREST ON REFUND OF TDS
- Input tax claim related
- User not found in MCA portal
- GST RATE ON FILM PRODUCTION
- Section 54
Related Topics :
CAclubindia
