All the assets and liabilities of the firm immediately before the conversion become the assets and liabilities of the LLP.
All movable and immovable properties of the firm automatically vest in the LLP. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
No Capital Gains tax shall be charged on transfer of property from firm to LLP.
The goodwill of the firm and its brand value is kept intact and continues to enjoy the previous success story with legal recognition.
The accumulated loss and unabsorbed depreciation of firm is deemed to be loss/ depreciation of the successor LLP for the previous year in which conversion was effected. Thus such loss can be carried for further eight years in the hands of the successor LLP.
Step No. | Steps |
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1 | DPIN (Designated Partner Identification Number)
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2 | Application for Name Availability
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3 | Documents required for incorporation of an LLP
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4 | Final Process:
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