Every member of the company must
agree with the decision of conversion.
All the member become the partners
of an LLP.
Not just the members, all the
creditors of the company must also agree with the conversion.
The latest copy of Income tax
return is to be filed with ROC.
Under Companies Act, should have
been initiated procedure to be followed:
- Obtain DPIN (Form DIR-3)
- Meeting of board of director of the
company
- File Form-1
- Draft the LLP
Agreement
- File Form-2 for Incorporation
Documents
- File Form-18
- File Form-3
- Obtain the certificate of
incorporation
- File Form-14 with the Registrar
Important Points: As per sec 47 of the Income Tax Act, 1961,
Conversion of the Company in to LLP will not affect the capital gain tax if all
the condition are satisfied:
- All the assets and liabilities of
the company shall become the assets and liabilities of the LLP.
- Total sales, gross receipts and turnover in any of the three
preceding year from the date of the conversion does not exceed Rs. 60 Lakhs.
- Shareholder of the company shall have at least 50% of the
aggregate of the profit sharing ratio in LLP during the period of five years
from the date of conversion.
- Total assets as appearing in the books of the account of the
company in any of the previous three years does not exceed Rs. 5 crore.
- All the shareholder of the company become partners of the
LLP and the capital proportion and profit sharing ratio are in the same proportion
as that of the shareholding in the company.
To get more information on this
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