Conversion of LLP into
Private Limited Company

Convert your LLP into Private Limited Company starting at Just  ₹ 15,500/- only 

 

Ideal for raising funds

 

For medium and large sized business

 

Simple & Secure Online Process

 

Dedicated Professional 

 

Get Conversion in 20-25 Days

 

Get Post Incorporation Assistance

 
 

Introduction

As Private Companies are one of the most popular forms of business structure in India. The entire world is gradually shifting towards one global market without any trade barriers between the countries. With the emergence of promotional startup benefits, a large number of entrepreneurs are looking forward to corporatization. They provide the opportunities of higher chances of growth and development and are also best for raising the equity capital which is not possible in case of a LLP.

The structure of LLP is not suitable for the owners who require venture capitalist or a private equity investor to invest in the company as they would choose to invest in a private limited company and not a partnership or a LLP. The second reason for conversion is that the Private Limited Companies are mostly preferred in case of FDI, especially if the promoters and/or owners of the company are the NRI’s or foreigner incorporating a private limited company

Legal Window has team of experts providing you the best assistance, timely delivery, and guaranteeing the highest customer satisfaction with respect to Conversion of Limited Liability Partnership into Private Limited Company. You may get in touch with our team on 072407-51000 or email admin@legalwindow.in

Advantages of Conversion of LLP into Private Limited Company

Separate Legal Existence

Once an entity is registered it is born in the eyes of law which means it is separate from its owners, Directors, Managers, shareholders and employees etc.



Limited Liability

As the Company is a separate legal entity its Liability is limited to an extent of its Share Capital or the guarantee provided. The Company's obligation does not create any right over the Owner's personal assets.

Fund Raising

It is the most preferred entity by the investors also as it provides an opportunity to raise money through Banks, Foreign Investors, Venture Capitalist and the Angel Investors etc.

No Capital Gain

Conversion of LLP into a private limited company does not attract any capital gain, hence it is a beneficial option for the LLPs to convert into private limited company without any additional cost of taxation.

Minimum Requirement

Minimum Two Directors and maximum Fifteen

Minimum Two Shareholders

Minimum one Director shall be Indian resident

Digital Signatures of Subscriber and Directors

No Minimum Capital requirement

Newspaper Advertisement.

Documents Required for Conversation of LLP into Pvt. Ltd. 

Pan Card and Aadhar Card of Partners

Photograph of partners

LLP Agreement and Certificate of Incorporation

Latest ITR of LLP

Statement of Assets and Liabilities (Latest)

Cutting of newspapers advertisement

NOC from all the creditors, if any

Business Address Proof
Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof
Rented/leased:
(Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Note:-   In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostilled. 

Process for Conversion of LLP into Private Limited Company

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. Name Availability
The next step is check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days. The consent of partners have to be taken for the application.

4. Newspaper Advertisement
We will provide the format for the newspaper advertisement which shall be published in a newspaper in English and in any vernacular language, circulating in the district in which Limited Liability Partnership is situated. 

5. E-filing for conversion into LLP
Once the name is approved, and no objection has been received for such conversion, an online application will be filed along with the requisite documents as obtained from the client with ROC in FORM URC-1 along with Spice+. The MOA as well as AOA shall be filed along with it. This process again takes approximately 2-3 days.

6. Get Certificate of Incorporation
Once the Company gets incorporated we will share all the docs like Incorporation Certificate, MOA , AOA and Digital Signatures.



Convert your LLP to Pvt Ltd Company ₹15,500/-

2 Digital Signature Certificates

1 Name Approval Application

INC 20A Commencement of Business Certificate

Stamp duty on INR 1 Lakh Authorized Capital (Rajasthan)

Company Incorporation using SPICe

Bank Account Open

MOA & AOA

PAN/TAN

GST Registration

ESI Registration

(Newspaper Advertisement Charges (Excluded)

PF Registration

More insights on conversion of LLP into Private Limited Company

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 company.
  • 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 Director 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 private limited company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, 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.

Treatment under Capital Gain

The conversion of LLP into a private limited company does not attract the provisions of capital gain, further when shares of the company are allotted to the existing partners in consideration to their capital contribution; there is no transfer of capital assets. Henceforth, there is no capital gain attracted in any case.

Related Posts

FAQs on Conversion of LLP to Private Limited Company

What is the minimum capital requirement?

There is no minimum capital requirement as per the Companies Act, 2013 .

How to file the Conversion form in case of more than 7 partners in the LLP?

In case of the Limited Liability Partnership having more than 7 partners at the time of conversion into Company then the Company shall have to file a Scanned copy of the Physically prepared MOA & AOA and the company shall have to file  URC-1 and  SPICE+ along with MOA and AOA.

 Can a Foreign National or NRI be a Director of a Company?

Yes, the above person can become a Director post obtaining Director Identification Number. However one Director should be Indian Resident.

Is it mandatory to have an Auditor and if yes in what time period it is required to be appointed?

As per Companies Act, 2013 it is compulsory to have an individual as an Auditor of a Company. The first Auditor shall be appointed within 30 days from the date of Incorporation by the Board of Directors .

Whether there is a need to file any separate form for PAN and TAN?

No, there is no need to file any other separate form, the Details pertaining to the Area Code and other details shall be entered in the SPICE+ itself and PAN & TAN shall be generated with the Certificate of Incorporation/Conversion.

What are the statutory requirements to be fulfilled once a Company is registered?

There are certain basic requirements to be fulfilled after conversion like:-

  • Opening a current account of the company
  • Appointment of Statutory auditor
Can a Private Limited Company carry a multiple business after the conversion of the Limited Liability Partnership?

The Act doesn’t imposes any restrictions on carrying the multiple businesses after conversion from the Limited Liability Partnership into Private Limited Company.

Whether it is necessary to have a PAN Card?

Yes, for Indian nationals becoming a Director in a Company it is mandatory to have a PAN Card and Passport in case of Foreign Nationals.

What is Company Registration Certificate?

It is the documentary proof evidencing that the Company has been registered and having its unique identification number as Corporate Identification Number.

What are the Annual Statutory Compliance requirements to be complied by a Private Company?

During every financial year, the company must hold at least 4 board meetings (one in each quarter) and one Annual General Meeting (AGM) and EOGM if required. Further, the company has to get the financial statements audited by an independent auditor. Subsequently, it shall file forms like AOC – 4 and MGT – 7  and other forms as applicable as part of Annual Compliance within given time.