Q : What basic conditions are required to be checked for conversion of company into LLP?
Answer: Following points should be noted for conversion of Company into LLP:
- All themembers of the Company shall become the partners of the LLP on conversion.
2. No security interest in the assets of the company is subsisting or in force on the date of conversion i.e the assets are free of any encumbrance.
3. Up to date Income-tax return has been filed under the Income-tax Act, 1961.
4. Any clearance, approval or permission for conversion of the company into limited liability partnership if required from anybody/ authority etc has been obtained