Resp. Professionals,
Below mentioned point is one of the essential requirement for Tax exemption of conversion of Company to LLP.
· The aggregate of profit sharing ration of Pvt Ltd shareholders shall not be less than 50 percent in next 5 years
And my query is
Query: If out of 10 shareholders, 4 are resigned later on but profit sharing remains same among continuing 6 partners, is it in compliance of above clause ?
Tax Exemption Rules for Converting a Private Limited Company to LLP with Shareholder Changes: Compliance Query Unanswered A user inquired about the tax exemption requirements for converting a Private Limited Company to a Limited Liability Partnership (LLP) under Indian law. Specifically, the user asked if compliance is maintained when 4 out of 10 shareholders resign but the profit-sharing ratio among the remaining 6 partners remains unchanged, ensuring it does not fall below 50% over the next five years. The query received no definitive response, with the user requesting further opinions on the matter. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
