Since the time Limited Liability Partnerships were introduced in India, many businesses went to incorporate as LLP (for the initial hype) without being aware of its limitations and advantages in true sense. These business have been looking to convert to a Private Limited Company as LLP does not support many agendas like raising professional investments, differential class of stocks, ESOPs etc. Although conversion from LLP to private Limited was always allowed, the exact process was specified recently.
In this episode of eLagaan Whiteboard Friday, the eLagaan team talks about how to go about converting an LLP into a Private Limited Company. It also looks at various tax and compliances that need to be complied with, various restrictions the law imposes post conversion and possible areas which need to be examined before taking a call to convert.