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LLP Registration|Legal Suvidha

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

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 unorganized sector. However for larger business, it has lost its relevance with the introduction of Limited Liability Partnership due to the added advantages offered by LLP as it provides the benefit limited liability, separate legal entity & ease of ownership transfer etc. 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. Following are some pre-requisites which should be kept in mind before converting partnership into LLP:

• ITR filing till date.
• Consideration to partners only by way of allotment of shares.
• Unsecured creditor’s consent regarding conversion.
• Minimum 2 partners.
• At least 1 designated partner shall be Indian Resident.
• DPIN & DSC of all partners.
• Contribution from each partner.

However, it is to be noted that licenses, registrations, properties etc. issued in the name of partnership will not get transferred at the time of conversion into LLP. After conversion partnership shall be deemed to be dissolved.



           
         


Advantages of LLP



INCORPORATION COST The incorporation cost of an LLP is low as compared to partnership the procedure for incorporating an LLP is less difficult.
MINIMUM CAPITAL REQUIREMENT There is no minimum capital requirement for forming an LLP making it a feasible option for startups & Small businesses.
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 There are some important advantages over the private limited company. For example, Dividend Distribution Tax and tax surcharge don't apply. Loans to partners are also not taxable as income.
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.
OWN PROPERTY Since, LLP is a separate legal entity from its partners, it can own property in its own name. So, no partner can claim any right over that property.


           
         


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. DPIN and DSC can be obtained for the proposed Partners within 5 to 7 days.

    



Documents Required for LLP Incorporation




For Partners

1. Self Attested PAN Card copy

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

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

4. Passport-sized photograph

For The Registered Office

1. Rent Agreement (Notarised: For rented property)


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


3. No-objection Certificate from property owner


4. 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.



    
Compare your options
Private Limited Company Limited Liability Partnership One Person Company Partnership Firm
Preferred for Start-ups Professional Services Firms Sole Proprietors Small-medium sized businesses
Limited Liabilty Protection Yes Yes Yes No
Minimum Requirement 2 Shareholders 2 Designated Partners 1 Director
1 Nominee
2 Partners
Fund Raising Options High Low Low Low
Tax Advantage Few Most Few Minimal
Statutory Compliances High Low High Minimal
Compliance Cost High Medium Medium Low
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