Menu
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 :
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
Related Topics :
CAclubindia
