STAMP DUTY WAIVER TO SWEETEN CONVERSION TO LLP

Partnership firms, private companies and unlisted public limited companies can look forward to convert themselves into the more flexible form of limited liability partnership (LLPs) without paying stamp duty to state governments. The government intends to allow these entities to vest the ownership of their assets with a newly-formed LLP without executing a deal to transfer these assets. As of now transfer of assets can be done only through a conveyance or an instrument that attracts stamp duty from state governments. To remove this requirement, the government has introduced a special provision in the proposed new LLP Bill for vesting of assets on the LLP at the time of its registration.