PARTNERSHIP FIRM TO LLP
SunShine Corporate Solutions helps business with conversion of partnership firm to LLP. The key benefits of conversion to LLP are as follows:
• Transfer: When there is conversion from a partnership firm to LLP, all the assets and liabilities belonging to the firm are transferred to the LLP with immediate effect.
• No Stamp duty: Since there is no major change in ownership in conversion of a partnership firm to LLP, all assets - movable and immovable property of partnership firm automatically become a part of the LLP. As a result, there is no need for a separate stamp duty to be paid for the process.
• Capital gain tax: In the process of conversion of partnership firm to LLP, the capital gain tax is not charged on transfer of property.
• Brand value maintained: An LLP retains the same brand value as it was before conversion of partnership firm. The new LLP is legally afforded with the same recognition.
• Losses and unabsorbed depreciation carried forward: When a partnership firm is converted to an LLP, the accumulated loss and unabsorbed depreciation of firm is deemed to be loss/ depreciation of the successor LLP for the previous year in which conversion was effected. Thus such loss can be carried for further eight years in the hands of the successor LLP.
Requirements for conversion of partnership firm to LLP:
Here are the key requirements to be taken into account when converting Partnership firm to LLP.
• Partnership: On conversion of partnership firm, the ownership pattern of the newly formed LLP should be identical to the old pattern. That is, the partners in the firm become partners in the LLP in the same proportion.
• Income tax returns: After conversion, the LLP has to file its income tax return regularly and keep accounts up to date.
• Consent of all the unsecured creditors for the proposed conversion.
• Minimum partners: There have to be at least 2 designated partners in the newly formed LLP.
• The partners and designated partners can be same persons.
• At least 1 of the designated partners shall be an Indian Resident.
• Each partner should contribute to the LLP, although share capital is not applicable here
The most important documents related to the designated partners for LLP registration Bangalore are:
• Designated Partner/Director Identification Number (DIN) for each of the designated partners
• Digital Signature Certificate (DSC) of each of the designated partners of the LLP
If you need any assistance with conversion of business from one form to another, SunShine Corporate Solutions is the only agency that you need to contact. We offer extensive services for all kinds of business in Bangalore, and anywhere in India.