What are the benefits of the conversion of Limited Liability Partnership (LLP) into a company?

  • The base rate of income tax in case of an LLP is 30%, whereas for private limited companies, the base rate of tax is 22%
  • A private limited company has a separate legal identity as compared to a LLP.
  • There is a separation of ownership and management in a private limited company, whereas in Limited Liability Partnership (LLP), the partners are owners and the managers of the LLP.
  • The venture capitalist prefer corporate structures over LLP structures.
  • Due to stringent compliances and disclosures under various laws, Companies enjoy a high degree of creditworthiness as compared to LLPs