Dear All,
Kindly advise whether is it a compulsion that on conversion of private company into LLP the contribution to be bought by the partners should be equal to the paid - up capital of the company. Kindly revert at the earliest.
Members views are appreciated
Warm Regards,
Sweta
No, There is no such compulsion . the capital contribution of LLP will be decided by its partners
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S. No
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Conditions
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LLP
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Company
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Partnership
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9.
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Remuneration to Managerial Personnel
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Remuneration to partners will be determined on LLP Agreement
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Remuneration to Directors of Public Companies are governed by Companies Act
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The firm can pay remuneration to its partners
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10.
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Liability of Partners/ Members
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Limited to the extent of contribution towards LLP
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Limited to the amount of share capital agreed to be contributed on each share
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Partners have unlimited liability
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11.
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Capital Contribution
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Determined by partners as per the LLP agreement.
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Limited to the unpaid amount of share capital agreed to be contributed
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Unlimited may extend to their personal assets
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You can confirm the same from below link also
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CAclubindia
