Conversion of LLP into Private Limited Company Online
Every company starts with the proposition of growing and leading in the market. If a company starts with an LLP, it should be upgraded to a private limited company or public limited company to avail of the enhanced benefits. If any LLP company wants to convert it to a private limited company for enhanced facilities, it needs to follow some specific compliances. With the growth of the company, you must increase the funds from investors. A private limited company is a step ahead of attracting investors. We at Online Legal India help plan necessary legal compliance in converting an LLP into a Pvt. Ltd. Company.
Eligibility Criteria for the Conversion of LLP to Pvt. Ltd Company
- Needs to conduct a meeting among the board of directors to enact the board motion for surrendering the license.
- Arrange a general meeting to get approval from the shareholders.
- If all the shareholders agree to the decision of winding up of the company, you need to organize an EGM and pass a Special Resolution (SR).
- Within 30 days of passing the Special Resolution, in the Extraordinary General Meeting, you need to submit MGT-14 together with the essential documents, DSC, and the charges.
- At that moment, you must fill out the INC-18 form, and send it to RD (Regional Director) along with the necessary paperwork and related fees for conversion.
- A copy of the notice given to all the members which is the proof of holding an EGM
- A copy of the Special Resolution passed
- A copy of the creditors if there is any
- A copy of an explanatory statement
- A copy of the advertisement where you advertised related to the winding up of the section 8 company (one in vernacular and one in an English daily).
- The advertisement format would be the Form-19 format.
- A copy of the winding up application, and the proof of delivery must be sent to the Chief Commissioner of Income Tax in the jurisdiction where the Section 8 Company’s registered office is located.
- A statement/declaration of the board of directors must be provided that any part of the company’s earnings, property, or asset earnings are paid or transferred to any member or any other person.
- If the Section 8 Company gets any grant, privilege, or exemption from any company, authority, or government agency, a copy of the NOC from the special authority is required.
- A copy of the annual settlement and financial statement must be submitted to the MCA up to the current financial year before forming the application for surrendering the section 8 company incorporation license filed with the RD.
- A copy of the certificate must be submitted from a professional such as a Cost Accountant, Company Secretary, or Chartered Accountant.
- The business must file INC- 20 with the register of companies by following the RD’s permission. The submission of MoA and AoA, and the relevant charges are mandatory this time.
- The request goes to the ROC (Register of Companies) which will check the status of the Section 8 Company. They will also check the status, whether the company is converting to a PVT Ltd. or a Limited company. Then, the Section 8 Company will be winding up.
If you do not want to run your Section 8 Company for any reason, you have to wind up it. Otherwise, you have to maintain it and need to fulfill the compliance persistently throughout the existence. The main purpose of winding up a company is to close a dormant firm and avoid legal obligations.
If a company or corporation fails to register its necessary compliance on time, it faces penalties. This becomes multiple unless you close the company. So, it is preferable to close the company.
When someone wants to start a new venture like the Pvt. Ltd. Company or public limited company, it is necessary to wind up a section 8 company. You cannot convert a non-profit organization to any profitable business entity. So, winding up the Section 8 Company is essential.
If you want to learn more about the Section 8 company closure process, you can contact Online Legal India. We have years of experience as CA/CSs to deal with your company winding up needs. Contact us now.
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You have to arrange general meetings, get confirmation from the debtors, settle debts and liabilities, spread the gained properties to the government or another nonprofit organization, and then file the closure form for the Section 8 Company. Then, get a certificate of successful closure of the company.
If a Section 8 company becomes dormant, you must maintain its compliance. Otherwise, you will face fines and penalties. So, it is better to close the company and get free from all liabilities.
No, you cannot convert a Section 8 company to any form of profitable company.
It is 15,999+18% GST, the lowest cost across India if you want to wind up from Online Legal India.