Limited Liability Partnership is one of the well recognised business models which was came into existence in 2008 with the advent of Limited Liability Partnership Act, 2008. As the two words Limited Liability have a great significance because only this features of LLP deviates it from the traditional firm. In other words, LLP is the alternative to the corporate form which gives the twin benefits of limited liability and flexibility of the partnership.
Conversion of Limited Liability Partnership into Private Company looks like a grey area of law where the exact picture was not clear till 2013 because companies act 1956 did not have any enabling provisions of conversion of LLP into private limited company. When the new companies act, 2013 was enacted, it specifically has those provisions which were missing under the companies act, 1956. Section 366 contain this power which provides that any partnership firm, LLP, cooperative society, or any other business entity formed under any other law consisting of seven or more members, may at anytime register under the companies Act, 2013 as an unlimited company or company limited by shares by following the procedures as provided under the rules.
Please ensure the following things before going for conversion:
Apply for the name by filing form number INC-1. Once the name has been approved, then it is valid for next 60 days
Following documents are attached with the form URC-1:
MOA & AOA:
After getting approved of the form URC-1, file MOA and AOA with concerned ROC. Following forms are required to be filed with ROC:
ROC may also ask for any further clarification, if required. Once all the clarifications are provided, the certificate of the incorporation is issued by the registrar of the companies which is the conclusive evidence of company incorporation.
Section 366 of the Companies Act, 2013 has provided existing LLPs an option to convert themselves in a Company, which is a welcome move by the Ministry of Corporate Affairs.
If you want to registration of your private limited company call us @ +91-8882-580-580