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Conversion of Partnership Firm into LLP

  • Ideal for small enterprises
  • For Limited Liability
  • Simple & Secure Online Process
  • Dedicated Professional
  • Get Conversion in 7-10 Days
  • Get Post Incorporation Assistance
Get Free Consultation

Introduction

At Tax and Services, we understand that navigating the legal landscape can be a complex and challenging task. That’s why we’re here to simplify the process for you. If you are considering the conversion of your Partnership Firm into a Limited Liability Partnership (LLP), you’ve come to the right place.

ur expertise lies in providing comprehensive legal services, and we specialize in facilitating the seamless transition of businesses from one structure to another. The conversion of a Partnership Firm into an LLP is a strategic move that offers various advantages, including enhanced flexibility, limited liability, and improved credibility.

Advantages of Conversion of Partnership firm to LLP

Limited Liability

Likewise Companies the Liability of Partner of LLP is limited to the amount of capital contributed by them limiting the risk of business and thereby safeguarding the assets of Partners.

Separate Legal Entity

The Limited Liability Partnership Act, 2008 also provides the benefit of Separate Legal Entity which says that the LLP is distinct from its Partners.

Less Compliance Formalities

The Limited Liability Partnership involves less compliance burden in comparison to any other corporate entities thereby making it cost friendly also.

Lower Registration Cost

The cost involved in registration of a Limited Liability Partnership is much less than any other corporate entity.

Minimum Requirements

  • Partners in partnership firm will become the partners in LLP with their consent
  • Income Tax Return should be up to date
  • All secured and unsecured creditors should provide their consent for the proposed conversion
  • Minimum two Designated Partners
  • At least one Designated Partner should be Indian Resident
  • Sharing Ratio in LLP = Capital Account Status in firm

Documents Required for Conversion

  • Passport size photograph & PAN Card of all the partners (Passport in case of Foreign National)
  • Partnership Deed under Partnership Act, 1932 (Certificate from ROF, if applicable)
  • Consent from Secured and Unsecured Creditors
  • Proof of Identity (Driving License / Voter ID Card / Passport) of the Partner
  • Statement of Assets and Liabilities certified from CA
  • Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
  • Proof of Address (Utility Bill / Bank Statement / Telephone Bill) of the partner
  • Acknowledgement of Last ITR filed by the firm
  • Rented/leased : (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Process of Conversion of Partnership firm to LLP

Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team.
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Step 01

Document Processing

At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
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Step 02

Application for DSC

First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days
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Step 03

Name Availability

The next step is to check the name availability. If the name similar to partnership firm is available, it can be proceeded with, otherwise you need to let us know atleast 4 names.
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Step 04

E-filing for Conversion Of Partnership Firm Into LLP

Once the name is approved, an online application is required to filed along with the requisite documents as obtained and the same is to be filed with ROC. This process again takes 2-3 days.
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Step 05

Get Certificate of Incorporation

Lastly, after the approval a Certificate of Incorporation will be provided through e-mail which signifies that the Partnership has been converted into LLP.
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Step 06

Filing of LLP Agreement

Within 30 days of the incorporation, LLP Agreement as drafted by our team will be shared and after approval from the partners it will be printed on the stamp paper and will be filed with the Registrar of Companies.
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Step 07

More Insights on Conversion of Partnership Firm to LLP

Key Insights on Conversion:

  1. Legal Formalities: The conversion process involves adhering to specific legal formalities. Our expert team at Tax and Services ensures that every step is meticulously executed, from obtaining necessary approvals to drafting and filing the conversion documents.

  2. Partners’ Consent: Consent of all the partners is a crucial prerequisite for the conversion. Our team assists in obtaining unanimous consent, guiding you through the communication process and addressing any concerns that may arise.

  3. Assets and Liabilities Transfer: The transfer of assets and liabilities from the partnership to the LLP is a critical aspect of the conversion. We ensure a comprehensive evaluation and smooth transition, minimizing any potential disruptions to your business operations.

  4. Tax Implications: Understanding the tax implications is paramount in any business transformation. Our tax experts provide insights into the tax advantages and implications of converting to an LLP, helping you make informed decisions that align with your financial goals.

  5. Drafting the LLP Agreement: Crafting a robust LLP agreement is fundamental to the success of your converted entity. Our legal team specializes in drafting agreements that align with your business objectives and comply with regulatory requirements.

  6. Compliance Management: Post-conversion, compliance becomes an ongoing commitment. At Tax and Services, we offer comprehensive compliance management services, ensuring that your LLP continues to operate smoothly within the legal framework.

Why Choose Tax and Services?

    1. Expert Guidance: Our team of legal and tax experts brings a wealth of experience in business transformation, ensuring that every aspect of the conversion process is handled with precision.
    2. Tailored Solutions: We understand that each business is unique. Our solutions are tailored to meet the specific needs and goals of your partnership firm, providing a customized roadmap for a successful conversion.
    3. Transparent Communication: We believe in transparent communication. Throughout the conversion process, we keep you informed, address your concerns promptly, and work collaboratively to achieve the desired outcome.

Transform your Partnership Firm into an LLP with confidence. At Tax and Services, we are not just your consultants; we are your partners in legal excellence. Contact us today to embark on a seamless journey towards a more robust and flexible business structure.

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