Convert Partnership to LLP
A partnership company may convert to an LLP in accordance with Section 55 of the Limited Liability Partnership Act of 2008, as well as Schedule II of the Act. Before submitting such an application, at least two partners must have a DPIN, and all partners must possess a current Digital Signature Certificate (DSC).
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INTRODUCTION
Convert partnership to LLP
Limited liability partnerships are preferable to general partnership structures due to increased profitability for participants. Unlike partnerships, limited partnerships (LLPs) are independent legal entities that must be registered with the central government. It is a type of corporate organization that combines the advantages of partnership flexibility with the advantages of corporate structure, allowing administrative and internal control organizations to protect the interests of the partners and reduce their liability It makes economic sense to convert a partnership into it LLP
ADVANTAGES
Advantages of partnership to LLP conversion
Limited Liability of Owners
As specified by the partners in the LLP Agreement, the responsibility of Partners is restricted to the amount of the capital contribution. Even after liquidation, partners are not entitled to share in the loss or debt of the LLP. Furthermore, none of the partners' misbehavior or ignorance can be attributed to one partner.
separate legal entity
The partnership is not a separate legal entity. When one or more partners pass away, retire, or depart the company for any other reason, the firm is dissolved. Unlike in this case, the creation of a new partnership is not necessary for a limited liability corporation. A limited liability corporation is a distinct legal body.
Tax benefits
Because interest and compensation are given to partners as a wage that is due to directors, limited liability partnerships (LLPs) avoid paying income tax, minimum alternative tax, and dividend distribution tax.
Raising Capital
Unlike a general partnership, where all common partners have unlimited liability, an LLP structure permits a limited partner to engage without assuming any responsibility, making it simpler to raise capital.
A LIST OF DOCUMENTS
Documents required for conversion into LLP
PAN Card
PAN Card of all partnersForeign nationals may provide passport
ID Proof
Each partner's voter ID, passport, Aadhar card, and driver's license
Photograph
Latest Passport size photograph of all partners
Business Address Proof
The registered office address's telephone and electricity bills
NOC from owner
A certificate of no objection must be acquired from the registered office's owner.
Rent Agreement
Rent Agreement of the registered office should be provided, if any
RoF
Certificate The RoF certificate is required if the partnership firm is registered.
Note
The partner's paperwork need to be notarized or apostilleled if they are a foreign national, or NRI.
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Register LLP in 3 Easy Steps
1. Respond to Quick Questions
- Our questionnaires take less than ten minutes to complete.
- Give the essential information and paperwork needed to convert a proprietorship to a partnership.
- Pay using a safe and secure payment gateway.
2. Experts are Here to Help
- Dedicated Relationship Manager
- Procurement of Digital Signatures (DSC)
- Application for Name Reservation
- Documents drafting including LLP agreement
- Application of conversion into LLP
- The Incorporation Certificate
3. Your LLP is Registered
- All it takes is 18-20 working days*
Process for Partnership to LLP Conversion
Day 1-2
- Application for Digital Signature Certificate
- Application for DIN allotment of Designated Partners
Day 3– 6
- Checking Name availability
- Application for Name Reservation
- Reservation of LLP Name
Day 7– 14
- Drafting the incorporation document
- Filing form for converting sole proprietorship to LLP
- Certificate of Incorporation
Day 15 – 20
- Application for LLP's PAN and TAN
- LLP Agreement drafting with a conversion provision
Day 20 – 25
- Payment of Stamp Duty
- Filing of LLP Agreement with MCA
- Government processing time
Explore partnership to LLP conversion
Frequently Asked Questions
- The partnership must include the same partners as the previous partnership, as well as the same proportion of those partners’ capital accounts as recorded in the firm’s records on the conversion date. As a result, the number of partners in the LLP cannot be altered from that of the existing Partnership Firm; modifications to the number of partners can only be made following the LLP’s conversion.
- An online form is used to reserve the name of the LLP. To reserve any one of the names, the partners may submit up to six names in preferential order in compliance with the regulations. Should the names provided fail to meet the requirements for originality, relevancy, or do
- No. To form an LLP, there is no set minimum amount required. It can begin with any initial money that the firm requires. All partners must contribute to LLP, while there is no minimum amount. The LLP Agreement discloses the capital contribution amount, and the overall contribution amount determines the amount of stamp duty that must be paid.
- A Director Identification Number is a special number that the Ministry of Corporate Affairs assigns to individuals upon request. With this number, anyone can apply to be a designated partner in an LLP or a director in any company. Furthermore, in regard to the establishment of LLP, the idea of a DPIN (Designated Partner Identification Number) no longer exists.
Being a Partner has no restrictions on citizenship or place of residence. Thus, foreign nationals, including foreign companies and limited liability partnerships (LLPs), are permitted to organize in India under the LLP Act, 2008, as long as at least one of the designated partners resides there. The individual must, however, be at least eighteen years old, incapable of becoming a minor, and able to sign a contract. The suggested Designated Partner must also possess a DIN.
- An LLP Agreement is a document that, following LLP establishment, is signed by each designated partner and partner. Every business-related clause, including those pertaining to partners’ roles, obligations, and rights, is prescribed in the agreement. Within thirty days following the issuance of a certificate of incorporation, the agreement must be filed. If this is not done, there will be an extra fee of ₹ 100 every day till the filing date.