{"id":105031,"date":"2021-12-01T10:54:26","date_gmt":"2021-12-01T05:24:26","guid":{"rendered":"https:\/\/legalwindow.in\/?p=105031"},"modified":"2021-12-04T10:12:43","modified_gmt":"2021-12-04T04:42:43","slug":"procedure-for-conversion-of-private-limited-company-into-llp","status":"publish","type":"post","link":"https:\/\/www.legalwindow.in\/blog\/procedure-for-conversion-of-private-limited-company-into-llp\/","title":{"rendered":"Procedure for Conversion of Private Limited Company into LLP"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105044 size-full\" title=\"Procedure for Conversion of Private Limited Company into LLP\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Procedure-for-Conversion-of-Private-Limited-Company-into-LLP.png\" alt=\"Procedure for Conversion of Private Limited Company into LLP\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Conversion-of-Private-Limited-Company-into-LLP.png 1200w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Conversion-of-Private-Limited-Company-into-LLP-600x315.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Conversion-of-Private-Limited-Company-into-LLP-300x158.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Conversion-of-Private-Limited-Company-into-LLP-1024x538.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Procedure-for-Conversion-of-Private-Limited-Company-into-LLP-768x403.png 768w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>On account of its flexibility, compliance, tax, and performance, LLP can be useful for small and medium-sized businesses, in general. Internationally, LLPs are the preferred business vehicle, especially in the service or professional industry. Conversions from an existing business structure can be made to LLP while maintaining the benefits of Limited Credit and Minimum Compliance. This article highlights the concept of procedure for conversion of <a href=\"https:\/\/legalwindow.in\/private-limited-company\/\" target=\"_blank\" rel=\"noopener\">Private Limited Company<\/a> into LLP.<\/p>\n<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"border: 1px solid #555;\"><strong>Table of Contents-<\/strong><\/p>\n<ul>\n<li><a href=\"#llp\">What is Limited Liability Partnerships (LLP)?<\/a><\/li>\n<li><a href=\"#certificate\">Certificate of Registration<\/a><\/li>\n<li><a href=\"#conversion\">Conversion Fee<\/a><\/li>\n<li><a href=\"#requirements\">Requirements for the conversion of a company into an LLP<\/a><\/li>\n<li><a href=\"#eligibility\">Eligibility for Conversion of Private Limited Company into LLP<\/a><\/li>\n<li><a href=\"#documents\">Documents Required to Transform a Company into an LLP<\/a><\/li>\n<li><a href=\"#outcome\">The Outcome of conversion of Private Limited Company into LLP<\/a><\/li>\n<li><a href=\"#procedure\">Procedure for conversion of Private Limited Company into LLP<\/a><\/li>\n<li><a href=\"#final\">Final words<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"llp\"><strong>What is Limited Liability Partnerships (LLP)?<\/strong><\/h2>\n<p><a href=\"https:\/\/legalwindow.in\/limited-liability-partnership-llp\/\" target=\"_blank\" rel=\"noopener\">Limited Liability Partnerships (LLP)<\/a>emerge as a well-known business structure with many benefits. It is a simple but integrated business approach where all the positive aspects of the Company and the Partnership firm are present. It is a substitute business venture that offers the benefits of a limited corporate debt and the flexibility of the partnership. The LLP is a separate legal entity, responsible for full assets but the liabilities of its partners are limited to their consented contribution to the LLP.<\/p>\n<p>LLP can continue its existence without looking at changes in partners. It can enter into contracts and hold assets in its name. In addition, no partner is liable for the private or unauthorized actions of other partners, thus individual partners are protected from the collective debt created by another partner&#8217;s wrongful business decisions or misconduct. Since LLP contains the elements of both \u2018<a href=\"https:\/\/legalwindow.in\/how-to-select-business-structure-for-starting-a-new-business\/\" target=\"_blank\" rel=\"noopener\">business structure<\/a>\u2019 and \u2018partnership structure\u2019 LLP is the hybrid of company and partnership.<\/p>\n<h2 id=\"certificate\"><strong>Certificate of Registration<\/strong><\/h2>\n<p>LLP must notify the registrar of the company&#8217;s conversion to LLP within 15 days from the date of conversion. The information must be processed on Form 14. The Registrar, upon completion of the required formalities, will issue a certificate of registration. If the Registrar refuses to change, a limited private company may appeal to the tribunal.<\/p>\n<p>If the properties are registered in the name of a company, the LLP must notify the transaction details of those officials, as well as the LLP details.<\/p>\n<h2 id=\"conversion\"><strong>Conversion Fee<\/strong><\/h2>\n<p>The conversion fees of a private company limited into LLP are as follows:<\/p>\n<ul>\n<li>LLP contribution maximum to Rs 1, 00,000 &#8211; Rs. 500.<\/li>\n<li>LLP contribution of more than Rs 1, 00,000 but is limited to Rs 5, 00,000 &#8211; Rs. 2000.<\/li>\n<li>LLP contribution of more than Rs 5, 00,000 but is limited to Rs 10, 00,000 &#8211; Rs. 4000.<\/li>\n<li>LLP with a contribution of more than Rs 10, 00,000 &#8211; Rs. 5000.<\/li>\n<\/ul>\n<h2 id=\"requirements\"><strong>Requirements for the conversion of a company into an LLP<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105037 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/cm.jpg\" alt=\"Requirements for the conversion of a company into an LLP\" width=\"2000\" height=\"500\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/cm.jpg 2000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/cm-600x150.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/cm-300x75.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/cm-1024x256.jpg 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/cm-768x192.jpg 768w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/cm-1536x384.jpg 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><\/p>\n<h2 id=\"eligibility\"><strong>Eligibility<\/strong><\/h2>\n<p>The conversion of a limited private company into an LLP can be \u00a0done under the following circumstances:<\/p>\n<ul>\n<li>The company does not have a security interest on its assets at the time of application.<\/li>\n<li>LLP partners will not be anyone other than the company&#8217;s shareholders.<\/li>\n<\/ul>\n<h2 id=\"documents\"><strong>Documents Required to Transform a Company into an LLP<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105038 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/Screenshot_13.png\" alt=\"Documents Required to Transform a Company into an LLP\" width=\"1138\" height=\"647\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot_13.png 1138w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot_13-600x341.png 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot_13-300x171.png 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot_13-1024x582.png 1024w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/Screenshot_13-768x437.png 768w\" sizes=\"auto, (max-width: 1138px) 100vw, 1138px\" \/><\/p>\n<h2 id=\"outcome\"><strong>The Outcome of <\/strong><strong>conversion of Private Limited Company into LLP<\/strong><\/h2>\n<ul>\n<li>In the procedure for conversion of a Private Limited Company into LLP, all assets, privileges, interests, rights, liabilities, and obligations of a private limited company are converted to the LLP.<\/li>\n<li>The private company will be considered dissolved.<\/li>\n<li>The name of the private company will be removed from the<a href=\"https:\/\/legalwindow.in\/roc-company-anuual-filing\/\"> Registrar of Companies<\/a>&#8216; register.<\/li>\n<li>Licenses\/permits issued under any law in written form to the Private Limited Company, and those valid before the date of conversion, are not automatically transferred to the Limited Liability Partnership. The license terms will be part of the decision here. Therefore, in most cases, a new <a href=\"https:\/\/legalwindow.in\/gst-registration\/\" target=\"_blank\" rel=\"noopener\">GST registration<\/a> or <a href=\"https:\/\/legalwindow.in\/fssai-food-registration\/\" target=\"_blank\" rel=\"noopener\">FSSAI registration<\/a> will need to be obtained by promoters.<\/li>\n<li>Conversions do not affect existing debts, obligations, agreements, contracts, and ongoing work or employment.<\/li>\n<\/ul>\n<h2 id=\"procedure\"><strong>Procedure for conversion of Private Limited Company into LLP<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105042 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/dd-scaled.jpg\" alt=\"Procedure for conversion of Private Limited Company into LLP\" width=\"1809\" height=\"2560\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-scaled.jpg 1809w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-scaled-600x849.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-212x300.jpg 212w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-724x1024.jpg 724w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-768x1087.jpg 768w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-1086x1536.jpg 1086w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/dd-1447x2048.jpg 1447w\" sizes=\"auto, (max-width: 1809px) 100vw, 1809px\" \/><\/p>\n<h2><a href=\"https:\/\/legalwindow.in\/limited-liability-partnership-llp\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-105046 size-full\" src=\"https:\/\/legalwindow.in\/wp-content\/uploads\/want.jpg\" alt=\"Conversion of Company in India\" width=\"1000\" height=\"200\" srcset=\"https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/want.jpg 1000w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/want-600x120.jpg 600w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/want-300x60.jpg 300w, https:\/\/www.legalwindow.in\/blog\/wp-content\/uploads\/want-768x154.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/a><\/h2>\n<h2 id=\"final\"><strong>Final words<\/strong><\/h2>\n<p>According to the discussions above,<a href=\"https:\/\/en.wikipedia.org\/wiki\/Limited_liability_partnership\" target=\"_blank\" rel=\"nofollow noopener\"> LLP<\/a> is a much simpler type of organization than a company in terms of tax compliance. Therefore, it may be more suitable for small businesses and professionals in particular. Conversions from an existing company can be made to LLP while maintaining the benefits of Limited Liability and limited compliance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On account of its flexibility, compliance, tax, and performance, LLP can be useful for small and medium-sized businesses, in general. Internationally, LLPs are the preferred business vehicle, especially&hellip;<\/p>\n","protected":false},"author":9,"featured_media":105043,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-105031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Procedure for Conversion of Private Limited Company into LLP<\/title>\n<meta name=\"description\" content=\"Complete Guide about Procedure for Conversion of Private Limited Company into LLP. 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