For closely held private limited companies looking to reduce their administrative compliance burdens, eliminate corporate tax inefficiencies, and gain operational flexibility, converting into a Limited Liability Partnership (LLP) is a highly strategic choice. Private companies are bound by strict statutory mandates, including compulsory audits, mandatory board meetings, and highly restrictive rules on profit distribution and dividend taxation. By transitioning to an LLP under Section 56 and the Fourth Schedule of the LLP Act, 2008, you maintain separate legal status and limited liability protection while removing corporate compliance overheads. We manage the entire transition, ensuring that the process is completely tax-neutral, and help you unlock structured tax savings on profit distributions directly to your partners.
Transition your corporate assets, property rights, liabilities, and client agreements directly to the LLP without executing costly transfer deeds.
Prepare and file the conversion application alongside Form FiLLiP, securing a rapid, hassle-free transition from the ROC.
Formulate a precise financial transition strategy to ensure your company meets the turnover and asset limits required for capital gains tax exemption.
Formulate a customized LLP agreement in Form 3 to establish flexible profit-sharing ratios and simplified internal governance rules.
To avoid capital gains tax under Section 47(xiiib) of the Income Tax Act, the company's annual turnover must not have exceeded ₹60 lakhs in any of the preceding three years, and the total value of assets must not have exceeded ₹5 crores.
If all the criteria of Section 47(xiiib) are strictly met, the accumulated business losses and unabsorbed depreciation of the predecessor company can be carried forward and set off by the successor LLP.
No, the bank accounts do not need to be closed. Since the entity continues to exist under a new legal structure, we assist you in submitting the conversion certificate to update the bank records with the new name and LLPIN.
Comprehensive solutions tailored to your business needs.
Resolve income tax notices and scrutiny assessments with precise, portal-compliant responses.
