Conversion of pvt ltd co to llp

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2016 Facts of the case:
Pvt Ltd Co in tobacco manufacturing sector with turnover more than Rs 200 cr. p.a.

My Query :
In Pvt Ltd or Company form - for saving the Directors from any liability under litigation, we can have safeguard of "Officer in default" concept where by passing board resolution / nomination done, Directors can avoid conviction. In LLP since concept of Designated Partner (DP) is there how can the Directors escape conviction, who will get there status changed to DP (in LLP converted from Pvt Ltd) & avoid conviction in any such litigation cases.
For such Industry is it worthwhile to continue in present Company form OR We should go ahead and convert into LLP.
Your expert opinion in detail (with pros & cons) will help many manufacturing co who are looking for such conversion decision aprat from Taxation advantages enjoyed by LLP.

Guest

Guest (Expert)

09 January 2016 In the current scenario, for closely held business, it is always better to be in LLP because in Pvt co, there are many restrictions under co act. Further the taxes are high in P Ltd. But if you want to get money from multiple people or raise public finance, then only you may go for Public company. This is my humble opinion. I once again tell you there are many complications in P Ltd. The responsibilities of directors are high in P ltd.