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Partnership to LLP

Staring Rs. 10,499/- (all inclusive)

Conversion of Partnership to LLP

The introduction of Limited Liability Partnership (LLP) has led more Partnership Firms to convert into Limited Liability Partnership (LLP) for obvious reasons such as unlimited number of Partners, perpetual succession, limited liability, transferability, tax benefits, less accountability, flexibility etc.

The main advantage of a Limited Liability Partnership over a traditional partnership firm is that in a LLP, one partner is not responsible or liable for another partner’s misconduct or negligence. LLP is one of the easiest form of business structure to be incorporated and managed in India. With an easy incorporation process and less compliance formalities, LLP is preferred by Professionals, Micro and Small businesses that are family owned or closely-held.

Eligibility for conversion of Partnership Firm to LLP:

Effects of conversion

Once the firm gets registered as LLP:

However, every partner of the firm will continue to be personally liable to obligations and liabilities of the firm that incurred before the conversion of firm into LLP.

Why LLP is better than Partnership?

What is Included In Our Package?

  1. DPIN for 2 Partners
  2. Stamp duty value upto Rs. 500*
  3. Digital Signature for a Partner
  4. Name search & approval
  5. LLP Agreement
  6. Government Fees
  7. LLP Pan Card
  8. CA assisted filing along with Certificate

Documents required for conversion

1. A Statement of consent of partners of the firm.
2. A Statement of the assets and liabilities of the firm which is duly certified as a true copy by a practicing Chartered Accountant.
3. A Copy of the acknowledgment of the latest income tax return.
4. Approval from any regulatory body/ authority
5. Prepare a list of all the secured creditors along with their consent to the conversion. It is Mandatory in case the consent of all the secured creditors for the conversion of the firm into a limited liability partnership has been.
6. A Clearance or No Objection Certificate (NOC) from the Tax Authorities.
7. PAN Card– Scanned self attested PAN Card of all partner
8. Partners Identity Proof– Scanned self attested Aadhar Card/ Voter ID/ Passport/ Driving License of all partners
9. Partners Address Proof– Scanned self attested Electricity bill/Telephone or mobile bill/Bank statement
10. Business Address Proof – Latest Electricity Bill/ Telephone Bill of the registered office address/Rent agreement/Sale deed, if owned
11. NOC from owner – No Objection Certificate to be obtained from the owner of registered office
12. Original Partnership Agreement
13. Partnership Registration Number

Note: Your registered office need not be a commercial space; it can be your residence, too.

Why choose Legalsahayata?

Low Price

No Office Visit

No Hidden Cost

Charges After Work Completion

Steps for Registration as LLP

First requirement for conversion is to Obtain DPIN (DIN) for the Partners of Company.

Apply for DSC (DIGITAL SIGNATURE CERTIFICATE)

Apply for NAME APPROVAL

Approval of name from Registrar

Draft the LLP Agreement

Application for conversion in Form 17 is required.

Registrar shall on conversion of a firm into a LLP, issue a certificate of registration under his seal in Form- 19

Filing of e-Form 3

Intimate the Registrar of the Firms

Process Flow

  • Complete our LLP Form

    You need to fill our simple LLP online questionnaire and submit LLP documents.

  • Obtain DSC and DPIN for LLP

    After submitting your documents we will provide you with DSC and DPIN LLP Verification & Name Approval

  • LLP Verification & Name Approval

    Details provided by you will be verified & then we shall apply for LLP name approval.

  • LLP Document Submission

    We will create all the required documents and file them with ROC for your LLP. Your work is completed.

Frequently Asked Question

The partnership is required to consist of the same partners that were present in the original Partnership and in the same proportion in which their capital accounts stood in the books of the Firm on the date of conversion. Therefore, the LLP cannot have more or less partners than the existing Partnership Firm, and any changes in the number of partners can be made only after conversion into the LLP.

LLP name is reserved through an online form. In accordance with the prescribed regulations, the partners can provide a maximum of 2 names in preferential order to reserve any one. The Registrar may ask to re-submit the application with a different name if given names do not fall under criteria of uniqueness, relevancy or do not fulfil the other requirements.

No. There is no minimum amount prescribed to form an LLP. It can start off with any amount of capital demanded by the business. Although there is no minimum requirement, every partner must make a contribution to LLP. The amount of capital contribution is disclosed in the LLP Agreement and amount of stamp duty to be paid is decided by total contribution amount.

Director Identification Number is a unique number assigned by the Ministry of Corporate Affairs to Individuals on application made which allows any individual to be a Director in any Company or Designated Partner in LLP. Further, the concept of DPIN (Designated Partner Identification Number) does not persist anymore with respect to incorporation of LLP.

There are no limitations in terms of citizenship or residency to be a Partner. Therefore, the LLP Act, 2008 allows Foreign Nationals, including Foreign Companies & LLPs to incorporate LLP in India; provided at least one Designated Partner is a resident of India. However, the person should be of age 18 years or above i.e. not a minor and competent to enter into a contract. Also, the proposed Designated Partner shall have DIN.

LLP Agreement is an agreement executed by all the designated partners and partners after LLP incorporation. The agreement prescribes all the clauses related to business; including the rights, role, duties and responsibilities of partners. The agreement must be filed within 30 days of the issue of a certificate of incorporation. Failure to which will charge an additional fee of ₹ 100 per day till the date of filing.

To effect any changes in the Limited Liability Partnership, the Partners shall pass the resolution at the meeting of Partners as required by the LLP Agreement of concerned Limited Liability Partnership. Further, the resolution shall authorize any of the existing Designated Partner to act on behalf of the LLP and its Partners. Also, the authorized partners shall also hold a valid DSC to file the application to Registrar. As soon as the partners execute the Supplement Agreement for a change of partner or their respective designation, an application shall be filed with MCA to approve the changes of a partner or the designation.

LLP and general partnership are treated equivalently (except for recovery purpose) in the Act; the conversion from a general partnership firm to LLP will have no tax implication. This is because, the rights and obligation of the partners remain the same after conversion and if there is no transfer of any asset or liability after the conversion. If there is a violation of these conditions, the provision of capital gain will apply.

Generally, the basic purpose of conversion is for keeping the same name to maintain the brand identity in the market. To convert the LLP under the original name it is essential to attach any valid proof that corroborates the claim of use of the brand name by the firm and in such cases, MCA grants the approval on the basis of documents attached in the concerned form for name reservation.

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