What are the ROC Annual Compliances and Income Tax Compliances?

The LLP needs to file Form-8 (Annual Financial Statements) and Form -11 (Annual return) compulsorily during the year. Further other forms are based on the events. The LLP has to [file the ITR](income-tax-return-filing) as applicable within the due date. For more information related to same you can read here.

Conversion of Partnership Firm into LLP in Jaipur

Overview

Introduction of Conversion of Partnership Firm into LLP

A Partnership Firm after the introduction of Limited Liability Partnership Act, 2008 can convert itself in Limited Liability Partnership The main reason is to obtain the advantages introduced under the Limited Liability Partnership Act, 2008 like unlimited number of partners, Separate Legal Entity, Limited Liability and ease in transferring the ownership.

Registered as well an Unregistered Partnership Firm can be converted to Limited Liability Partnership but Limited Liability Partnership should have the same partners as were in the Partnership Firm.

Therefore, it is advisable to retire all the Partners who do not continue to be a part of LLP and if new partners are required to be added, they should be added after the incorporation of LLP.

Legal Window has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Conversion of Partnership Firm into Limited Liability Partnership. You may get in touch with our team on 072407-51000 or email [email protected] for the assistance in Conversion of partnership firm to LLP.

Advantages

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.

Eligibility

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.

At least one Designated Partner should be Indian Resident.

Minimum two Designated Partners.

Sharing Ratio in LLP = Capital Account Status in firm.

Documents

Documents Required for Conversion of Partnership Firm into LLP

Checklist

Passport size photograph & PAN Card of all the partners (Passport in case of Foreign National)
Proof of Identity (Driving License/Voter ID Card/Passport) of the Partner
Partnership Deed under Partnership Act, 1932 (Certificate from ROF, if applicable)
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)
Consent from Secured and Unsecured Creditors
Business Address Proof Owned Property (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
Statement of Assets and Liabilities certified from CA
Note:- In case of NRI or Foreign National documents of Partners must be notarized or apostilled.

How it works

Process of Conversion of Partnership firm to LLP

1

Complete the Application Form

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

2

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.

3

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.

4

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 which should be unique in nature and should not be similar to name of any other entity registered. Further, It may take at least 1-2 days.

5

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.

6

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.

7

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.

Pricing

Convert your Partnership to LLP ₹10,500/-

More Insights on Conversion of Partnership Firm to LLP

How to Select the Name of Company

You can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. Our team will assist you in the selection of name of LLP.

Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Legal Window by clicking on the link Trademark Registration.

Other Key Points

If the proposed PARTNER is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Legal Window.

The LLP is required to manage all the compliances after incorporation of the LLP like Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Legal Window has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.

All the proceedings by or against the firm which are pending before any authority such as Courts, Tribunal etc.

Every agreement, deeds, contracts, applications, instruments, schemes, bonds subsisting in the name of partnership firm immediately before conversion.

Statement of conversion.

Name and Registration no. of firm, if applicable.

When the contribution of the Limited Liability Partnership exceeds Rs. 25 Lakhs.

When the annual turnover of the Limited Liability Partnership exceeds Rs. 40 Lakhs.

Questions

FAQs on Conversion of Partnership Firm to LLP

There is no minimum capital required prescribed for registering LLP under LLP Act 2008.

Any individual or corporate body can be a partner in an LLP. The designated partner needs to be a major i.e. above the age of 18 years. The Ministry of Corporate Affairs has no prohibition on the citizenship or residency of the partner. Thus, any foreign national or foreign corporate body can be a partner in Indian LLP with the condition that at least one designated partner should be a resident of India.

Yes, the LLP can be converted into Company by complying with the related provisions.

The stamp duty is based upon the capital and the state in which you are incorporating the LLP. The charges of stamp paper and notarization are excluded from our fees.

The LLP needs to file Form-8 (Annual Financial Statements) and Form -11 (Annual return) compulsorily during the year. Further other forms are based on the events.
The LLP has to file the ITR as applicable within the due date.

Though it is not compulsory by the Limited Liability Partnership Act, 2008 but it becomes mandate when:-

When the contribution of the Limited Liability Partnership exceeds Rs. 25 Lakhs
When the annual turnover of the Limited Liability Partnership exceeds Rs. 40 Lakhs.

Yes, He/she can post obtaining of DIN/DPIN. However, there shall be atleast one resident partner in LLP.

The conversion from a partnership firm to LLP will not attract any Capital gain taxation. This is only possible if all the partners remain same after conversion and do not transfer the assets as per the provisions of Income Tax. If there is any violation in carrying out these pre-conditions, it may attract capital gain.

You need to open a Current Account in the name of LLP and deposit the amount of capital in the sharing ratio.