CONVERSION OF PARTNERSHIP TO LIMITED LIABILITY PARTNERSHIP




Easily convert your partnership to LLP through Legal Suvidha Providers.



Starting at :₹8999 (all inclusive)




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CONVERT PARTNERSHIP TO LIMITED LIABILITY PARTNERSHIP

Definition Advantages Procedure Documents FAQs


CONVERT PARTNERSHIP TO LIMITED LIABILITY PARTNERSHIP


A Limited Liability Partnership (LLP) can prove to be a much better business vehicle than a regular partnership.Partnership firms are relatively easy to start and are prevalent among little and medium sized businesses in the unorganised sector . However for larger business, it has lost its relevance with the introduction of Limited Liabilty Partnership due to the added advantages offered by LLP as it provides the benefit limited liability,separate legal entity.This is the reason that the Partnership Firms are converting into Limited Liability Partnership.

Therefore the Partnership Firm which wants to convert itself to LLP must be registered under Indian Partnership Act, 1932. Unregistered Partnership Firm can’t be converted to LLP. LLP incorporated by conversion of Partnership Firm to LLP must have same partners as they were in the Partnership Firm. Therefore it is suggested that the Partnership Firm should retire all the Partners who do not wish to be a part of LLP and if new partners are to be added, they should be added after the incorporation of LLP. Legal Suvidha Providers will help you convert Partnership firm to LLP easily.





Advantages of LLP



LIMITED LIABILITY PROTECTION Businesses often need to borrow money. In a General Partnership, partners are personally liable for all this debt. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In an LLP, only the amount invested in starting the business would be lost; all personal property would be safe.
BETTER IMAGE AND CREDIBILITY IN MARKET Limited Liability Partnership (LLP) is a popular and well known business structure in the world. Corporate Customers, Vendors and Govt. Agencies prefer to deal with LLP instead of proprietorship or normal partnerships.
NO AUDIT REQUIREMENT AND MINIMAL COMPLIANCES LLP is easy to manage and statutory audit is not required for Limited Liability Partnership. LLP is most ideal for small enterprises..An LLP only requires audited annual returns to be filed if it has a turnover of greater than Rs. 40 lakh or capital contribution of over Rs. 25 lakh.
TAX ADVANTAGES GST will work on value addition concept and it is expected that new registration will come in existence to take to benefit of Input Tax in Transaction chain. GST allows seamless flow of input tax credit.
SEPERATE LEGAL ENTITY A LLP is a legal entity and a juristic person established under the Act. Therefore a LLP form of organization has wide legal capacity and can own property and also incur debts. The Partners of a LLP have no liability to the creditors of a LLP for such debts.
PERPETUAL SUCCESSION A LLP has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A LLP, being a separate legal person, is unaffected by the death or other departure of any Partner but continues to be in existence irrespective of the changes in Partnership.
EASY TRANSFERABILITY The ownership of a LLP can be easily transferred to another person by inducting them as a Designated Partner of the LLP. LLP is a separate legal entity separate from its Managing Partners, so by changing the Managing Partners, the ownership of the LLP can be changed.




Process of Incorporation of LLP




1

Obtaining DSC & DIN

2

Name Approval

3

LLP Incorporation













Digital Signature Certificate(DSC) and Designated Partner Identification Number(DPIN) is required for the proposed Partners of the LLP.




Documents Required for LLP Incorporation






Self Attested PAN Card copy of Designated Partner


Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License) of Designated Partner


Self Attested copy of Address Proof in the name of partner(Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)


Passport-sized photograph of Designated Partner


Rent Agreement (Notarised: For rented property)


Sale Deed/Property Deed in English (in case of owned property)


No-objection Certificate from property owner


Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill




Frequently Asked Questions





What is the minimum number of Partners required to start a Limited Liability Partnership?
At least two members are required for LLP registration.

Who can become a partner in LLP?
Any individual/organization can become the partner of LLP including foreigners/NRI’s.

Will the assets belonging to partnership get transferred to LLP with the conversion?
No. For any licenses, permits, registrations, properties, approvals, etc., belonging to prior Partnership Company, the newly formed LLP must follow the required procedures with concerned authorities to transfer the assets.

What is the time taken by legalsuvidha.com for conversion?
legalsuvidha.com can incorporate a LLP in 14-20 days. The time taken also depends on relevant documents provided by the applicant and speed of approvals from government. To ensure speedy registration, please pick a unique name for the proposed LLP and make sure you have all the required documents before starting the registration process.

Are there any formalities to be followed after the LLP comes into effect?
The LLP shall ensure that for a period of twelve months commencing not later than 14 days after the date of registration, every official correspondence of the LLP bears the following:

• A statement that it was, as from the date of registration, converted from a firm into LLP
• The name and registration number, if applicable, of the firm from which it was converted

What are the advantages of an LLP as opposed to a Private Limited Company?
The main advantage is that in an LLP, there are fewer formalities after the business has been incorporated. For example, you need not file annual returns etc. unless your income crosses a certain limit. An LLP is preferable if you are offering professional services, like a lawyer or architect. A Pvt. Ltd. Company is preferred if you want to launch a scalable enterprise.

When does the LLP come into effect?
Once the procedure to convert Partnership to LLP comes to complete and the registrar provides the certificate of registration, the firm must follow the rules and regulations as applicable to LLPs.







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Private Limited Company
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One Person Company
Partnership Registration
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GST Transition Filing
Annual Compliances for Pvt Co.
Annual Compliances for LLP's
Increase in Authorised Capital
TDS Return Filing

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