PROCESS FOR CONVERSION OF COMPANY INTO LLP
PROCESS FOR CONVERSION OF COMPANY INTO LLP Benefit of the Conversion of company into LLPs is as follows:- Easy to handled in comparison to that of other companies. The maximum limit of shareholders is not limited in an LLP. The LLP can have any desired number of shareholders. However, the maximum number of shareholders is fixed in a private company. Management of funds depends entirely on the members’ wish. LLP doesn’t have to pay the Dividend Distribution Tax which is to be paid by the companies. Also, LLPs save MAT tax and income tax due to interest and remuneration payable to partners. Less compliance than Company. In short, LLPs involve the best practices of private companies and also protect the freedom of partners, giving them the ability to decide the norms of the company. Thus it combines the best features of various kinds of businesses. The Finance Bill 2010 stated that the capital gain tax will not be levied on conversion to an LLP...