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Can a proprietary firm into llp

12 February 2022

hello
can a proprietary firm can be converted into llp

the propietior firm has debt of 40 crore and the return of FY 19 20 is not yet filed.

can the company still go and convert it in LLP

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4 Replies

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 13 February 2022

File the return for AY-2020-21 through AO.

Form LLP first & transfer all assets & liabilities using sale consideration

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sabyasachi mukherjee (27121 Points)
Replied 14 February 2022

Condonation of delay under section 119(2)(b).
complete process is very important. Obviously involment of AO is there.
But it will take time.Then convert it to llp.

Eswar Reddy S (CFO- at NHTF) (58263 Points)
Replied 14 February 2022

Condonation of delay for AY-2020-21 can't be filed for e-filing of ITR.

Chirag (Professional) (1979 Points)
Replied 15 February 2022

@ Aayesha

You can Form LLP first as suggested ,and can also transfer all assets to LLP ( Like we call it transfer of asset ) while it be in the form of your contribution ,For Income Tax purpose you have to file ITR ,and it's your default ! In eye of law you and proprietorship is not different ...Non Filing of ITR will not impact unless otherwise you are company(Pvt) or Registered partnership...