Leave & License Agreement
A leave and licence agreement is an agreement that enables one party to allow another party to use their immovable assets, i.e., property, for a specific period without any change in the ownership. Leave and Licence agreement is different from Lease Agreement.
Advantages of Conversion
- By converting into LLP, the company saves Dividend Distribution Tax, Minimum Alternative Tax, and Income Tax because interest and remuneration are paid to partners as a salary that is payable to directors.
- SAnother advantage for an LLP is that No audit is required unless capital exceeding Rs. 25 lakhs or Turnover exceeding Rs. 40 Lakhs.
- LLP has lesser compliance requirements as compared to a company.
- No capital gain shall be charged on transfer of property from Company to LLP.
- No stamp duty is required to be paid in case of transfer of movable and immovable properties.
- There is no need of compliance related to meetings and maintenance of huge statutory records.