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Advantages of Conversion

Advantages of Conversion

  • At the time of distribution of profits, the Companies are required to pay Dividend Distribution Tax (DDT). LLP is not supposed to pay DDT.

  • There are minimum compliances for LLP unlike Companies where they need to manage many statutory records.

  • All the assets of Private Limited Companies are deemed to be the assets of LLP.

  • There is no Stamp Duty payable on transfer of assets of Private Limited Company to LLP

  • There is no Capital Gain Tax on transfer of assets from Private Limited Companies to LLP on conversion.

  • Accumulated losses and unabsorbed depreciation of Private Limited can be transferred to LLP and LLP can carry forward those losses for eight years.

  • There is minimal requirements as to Minute Books, Resolutions and Board meetings etc.

Conversion of Company into LLP

Advantages of Conversion