Conversion of Partnership firm into Limited Liability Partnership(LLP)

    - Partnership firm to LLP conversion
    - Get your partnership firm converted into LLP at just Rs 9,999/-
    - Within 15-20 working days
    - Work handled by professionals

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Conversion of Partnership firm into Limited Liability Partnership(LLP)

A partnership firm may be converted into a LLP by making all the partners of partnership firm, the partners of new LLP Choosing Limited Liability Partnership would give the people who are the part of incorporation the simplicity and flexibility out of the box. The Limited Liability Partnership was Act 2008 was first published on official Gazette of India on 9 January 2009 and the partnership deed must comply to the requirements under the Companies Act 2013 in most of its affairs. A Limited Liability Partnership (LLP) can prove to be a much better business vehicle than a regular partnership. Partnerships are affected by personal liabilities, and LLPs remove excessive regulations of the Indian Partnership Act, 1932. Furthermore, there are tax benefits, no audit requirements below a certain capital, no cap with regard to a number of partners or capital contribution requirements. In Limited Liability Partnership registration the partners can enjoy the two fold benefits of liability isolation and as well as to reap the benefits of the business agreement that was proposed during incorporation between the partners At Unilex Consultants we provide you a hassle free conversion of partnership firm to LLP which would be dealt by our professionals. Our team takes care of the documentation and aids in provide you the realistic estimation of cost.

Advantages of conversion from Partnership firm to LLP

Unlimited Partners

The primary reason of many prefering to stick to LLP registration is the obvious point of having no limit to the partners involved the set business.

Limited Liability

Limited Liability plays an major role in the decision as the partners are limited to the actions they make for the shares.

Continuity of Existence

The company would exist in succession fashion as the governmental body treats it as a separate entity in terms of law.

Flexible

The company rules are flexible and they can be effective as long as they are present in the partnership deed that would be agreed by all the partners.

Taxation Benefits

The company can enjoy the benefits of tax and can claim for expenses like Salary to Directors, Professional Fees, Audit fees, Rent and Depreciation on its Assets.

Business Credibility

Unlike normal Partnership firms, LLP firms are given more recognition as they are regulated in company point of view by law.

Documentation for conversion from Partnership firm to LLP

statement of all assets and liabilities

LLP Agreement

KYC of all partners

Electricity/ Water bill (Business Place)

Landlord NOC (Format will be provided)

Consent of all creditors

Partnership deed

Latest ITR acknowledgements

Packages



Note:


Process involved in registering a Conversion of Partnership firm into Limited Liability Partnership(LLP)

1

Obtaining DSC and name approval (1-3 Working Day)

Digital Signature Certificate (DSC) is required for the proposed partners of the LLP. After getting DSC we will apply for name approval.

2

Document Review for conversion (3-4 Working Day)

Once the name gets approved, our team will get in touch and collect all the requisite documents in scan for the conversion through form-17.

3

Document Submission (1-2 Working Day)

After the review of all the documents required, we will submit them to the MCA and once it gets approved by the ministry and get your LLP incorporated.

Requirements for conversion from Partnership firm to LLP

    - Partnership firm should be registered.
    - The firm should be atleast one financial year old
    - Consent of all the partners required
    - All the Partners become partner in the LLP, in the same proportion in which their capital accounts stood in the books of the Firm on the date of the conversion.
    - Every partner should contribute to the LLP.
    - Every partner must have DSC and DPIN before conversion

FAQs About conversion from Partnership firm to LLP

What are the primary requirements for the conversion of a partnership firm into an LLP?
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 extant Partnership Firm, and any changes in the number of partners can be made only after conversion into the LLP.
How to reserve the name for a Limited Liability Partnership?
LLP name is reserved through an online form. In accordance with the prescribed regulations, the partners can provide a maximum of 6 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 fulfill the other requirements.
Is there any minimum capital requirement for LLP registration in India?
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.
What is Director Identification Number (DIN)? Is DPIN required for LLP Registration?
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.
What are the requirements to be a Partner/ Designated Partner for LLP formation?
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.
What is LLP Agreement? Does it require filing with MCA?
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.
How to change partners in LLP?
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.
Whether any capital gain is payable on conversion of partnership into LLP?
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 true if 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.
Can the same name be used for the newly incorporated LLP?
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.in such cases, MCA grants the approval on the basis of documents attached in the concerned form for name reservation.

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