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Conversion of limited company into LLP

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(Querist)
08 May 2023 the aggregate of the profit sharing ratio of the shareholders of the company in the limited liability partnership shall not be less than fifty per cent at any time during the period of five years from the date of conversion; (i.e you can take new partners in the LLP, but all the previous shareholders who became partners in LLP share should remain at least 51% for 5 years from conversion.)

Does this mean that the converted LLP cannot be dissolved for a period of 5 years? What if there is death of the main partner and thus there is no income in the company. The remaining partners want to sell the assets and wind up the company
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 May 2023 No, it can be dissolved within a period of 5 years.
This condition apply only in case of continuation of LLP for 5 years.
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Kinjal Thakkar

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Kinjal Thakkar (Querist)
08 May 2023 so are there any conditions on dissolution, or it can be immediately dissolved? what about immovable properties ? can it be sold?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
08 May 2023 No condition, capital gains tax applicable on sale

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