LLP to Private Limited Company

1. Getting DSC(Digital Signature Certificate) and DIN(Director Identification Number)
2. Approving the name of the Company
3. registering the Company address
4. Drafting MOA(Memorandum Of Association) & AOA(Article of Association)
5. Filing of e-form(INC-7) with the ROC(Registrar Of Company)
6. payment of ROC fees & getting a stamp on the documents.
7. verification by the ROC
8. Finally the certificate of incorporation to be given by ROC

No, LLP cannot be converted to a Private Limited Company as it is not permissible by the government of India. Both the LLP Act, 2008 and the Companies Act,2013 are silent about the matter and haven\’t done any amendments on the same. However, if you want to expand your business you can register a Private Limited Company with INC-29 which has simplified the process of registration. Ministry of Corporate Affairs has passed a notification on 31st May, 2016 in such notification its allowed conversion of LLP into Company. For such conversion there is need to prepare a list of documents and required to file the same with ROC in forms like URC-1, INC-32, INC-33 and INC-34 etc. While conversion there is need to consider the implications of income Tax provisions also like Capital Gain. In below mentioned article author attempt to cover up the provisions of Companies Act and capital gain implication while conversion from LLP to Company.

• Legal Compliances
• Number of people required are low
• Funding requirements can be fulfilled with the help of shareholders and financial bodies.
• Limited liability of the members
• Growth of Business can be done by converting a Private Limited to a Public Limited, but an LLP cannot be converted to a Private Limited hence it restricts the growth.
• Even though Private Limited Company is expensive but to execute the Big idea into a successful long term business Private Limited Company is the best choice for start-ups.

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time.

• Rent agreement along with latest rent receipt (in case the premises are rented)
• House tax receipts (in case premises are owned)
• Electricity bill
• NOC from the Owner (Format will be shared once your company name approved)

It is a unique 10-digit alphanumeric identification that is issued to each and every taxpayer, may it be Business, Individual, HUF(Hindu Undivided Family), Trusts, Foreign Citizens and more. This PAN number and the card is issued by the Income Tax Department which is of extreme importance as identity form. This card is used by the Income Tax department to keep a check on the transactions that can carry a taxable component. PAN card id required as evidence/proof/identity and even in transactions that is associated with a high value.

A 10 digit alphanumeric number is issued by the Income-tax department which is known as Tax Deduction Account Number or Tax Collection Account Number(TAN). Any person who is responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS) needs to have a TAN.

Digital Signature Certificates (DSC) is an electronic format of a certificate that represents the physical form of a certificate. These are specific certificates which give you authority to access information or services on the Internet or to sign legal documents. It works as a proof for the identity of a person example of certificates can be like a driving license, passport or any membership certificates. It\’s the same way as the physical documents are signed manually, the electronic documents, like e-forms, are signed by using a Digital Signature Certificate.

Director identification number is the unique number that is issued to existing Director or a Future Director of a Company. It is required to be submitted during the procedure for company registration. And for further if a person wants become director in any existing company it requires DIN before appointing as director of the company.

It is a tax that is demanded on documents. The stamp duty includes majorly the legal documents such as cheques, military commissions, marriage license, receipts and land transactions. When a physical stamp is attached to the document, it is denoted that, the stamp duty had been paid for particular document which was effective legally.

Yes, a chartered accountant is important for a company registration, as it provides general accounting, internal auditing, accounting, outsourcing, income tax advisors, tax planning, etc.

It is a strict No, a government employee cannot run a business or do a part time job and for that matter anything except the designated work in the government.

It is a written document which is signed on behalf of a corporation/company to serve as a legal proof of ownership of shares/stock that the company indicates to have. It is also termed as Stock Certificate.

Every company having a paid-up capital of Rs. 10 crore needs to have a whole time CS official as per the new amendment in the Company Act 2013.