Conversion of Partnership Firm into LLP

Convert your partnership firm into LLP at ₹ 10,500/- only

 

Ideal for small enterprises

 

For Limited Liability

 

Simple & Secure Online Process

 

Dedicated Professional 

 

Get Conversion in 7-10 Days

 

Get Post Incorporation Assistance

 
 

Introduction

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 admin@legalwindow.in for the assistance in Conversion of partnership firm to LLP.

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)

Proof of Identity (Driving License / Voter ID Card / Passport) of the Partner

Proof of Address (Utility Bill / Bank Statement / Telephone Bill) of the partner

Partnership Deed under Partnership Act, 1932 (Certificate from ROF, if applicable)

Statement of Assets and Liabilities certified from CA

Acknowledgement of Last ITR filed by the firm

Consent from Secured and Unsecured Creditors

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

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 Partners must be notarized or apostilled.

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.

Convert your Partnership to LLP ₹10,500/-

2 Digital Signature Certificates

LLP Incorporation using FiLLP

Draft LLP Agreement (Stamp Duty and Notary Excluded)

1 Name Approval Application under RUN

PAN

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 below mentioned 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.
  • The LLP will further be liable for the following acts or deeds of the partnership firm :
    • 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.
  • The LLP shall ensure that not later than 14 days of incorporation for a period of 12 months, every official documents or correspondence shall bear the following :
    • Statement of conversion
    • Name and Registration no of firm, if applicable
  • LLP is required to conduct audit in following cases:
    • 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.

Related Posts

FAQs on Conversion of Partnership Firm to LLP

What is the minimum capital required to form a Limited Liability Partnership?

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

What are the requirements to become a partner in a Limited Liability Partnership?

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.

 

Can a Limited Liability Partnership be converted into Company?

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

How much stamp duty is levied for drafting LLP Agreement?

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.

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 as applicable within the due date. For more information related to same you can read here

Is it necessary get accounts of Limited Liability Partnership audited from an auditor?

Though it is not compulsory by the Limited Liability Partnership Act, 2008 but if the 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.
Can a NRI/Foreign National become Partner in Limited Liability Partnership?

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

Whether conversion of partnership into LLP attracts Capital gain?

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.

What are the post incorporation compliances in case of LLP?       

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