Conversion of pvt ltd co to llp
ASHISH
(Querist) 02 January 2016
This query is : Resolved
Facts of the case:
Pvt Ltd Co in tobacco manufacturing sector with turnover more than Rs 200 cr. p.a.
My Query :
In Pvt Ltd or Company form - for saving the Directors from any liability under litigation, we can have safeguard of "Officer in default" concept where by passing board resolution / nomination done, Directors can avoid conviction. In LLP since concept of Designated Partner (DP) is there how can the Directors escape conviction, who will get there status changed to DP (in LLP converted from Pvt Ltd) & avoid conviction in any such litigation cases.
For such Industry is it worthwhile to continue in present Company form OR We should go ahead and convert into LLP.
Your expert opinion in detail (with pros & cons) will help many manufacturing co who are looking for such conversion decision aprat from Taxation advantages enjoyed by LLP.
ABDUL RAZIQUE
(Expert) 03 January 2016
The Ministry of Corporate Affairs (MCA), Government of India, and its well-equipped web portal [www.llp.gov.in] is directly concerned for establishing an LLP. So you visit that web portal or contact any charter form.
ASHISH
(Querist) 03 January 2016
Abdul, this is a strategic decision. I still await other Experts opinion.
ASHISH
(Querist) 03 January 2016
Abdul, this is a strategic decision. I still await other Experts opinion.
T. Kalaiselvan, Advocate
(Expert) 10 January 2016
You may approach a consultant on this matter who would be able to guide you properly as per law.
ASHISH
(Querist) 10 January 2016
As per definition of business given in LLP manufacturing is not included whereas other scope of activities are specifically mentioned. therefore it means that LLP is not meant for manufacturing activities as separate form of entities other than LLP can do the same.
