Conversion Directions
LLP into Company (Section 366)
Converting an LLP into a Private Limited Company is a strategic move for startups seeking VC funding or a lower corporate tax profile:
- Strict adherence to Section 366 of the Companies Act, 2013.
- Asset and Liability transfer without the need for a separate sale deed.
- Maintaining continuity of the existing business identity and contracts.
- Filing of Form URC-1 and necessary incorporation documents.
Company into LLP
Ideal for businesses looking for lower administrative overheads and tax-free profit distributions (No Dividend Distribution Tax):
- Smooth transition of shareholding into partner contributions.
- Drafting the LLP agreement to mirror existing board structures.
- Statutory filings with the ROC to secure the new Certificate of Incorporation.
Strategic Advantage
Tax & Structural Optimization
The choice between an LLP and a Company is often driven by tax advantages provided by the government. Whether it’s the benefit of the lower 15% - 25% tax rate for new companies or the distribution flexibility of an LLP, our experts evaluate your financials to recommend the most profitable pivot for your brand.