A firm where two or more people share ownership of the business is a partnership firm. In a partnership firm, each partner contributes to all aspects of the business. The partners also share the profits and losses of the business. An LLP, a Limited Liability Partnership, on the other hand, is a business arrangement where all partners have limited liabilities. One partner is not responsible for the other partner’s diligence or negligence.
Therefore, for those who want to be on the safe side when doing business, it’s a good idea to convert your Partnership into a Limited Liability Partnership. By doing so, you’re going to combine the partnership aspect of a firm with the Limited Liability aspect of a company.
Advantages of converting to an LLP
Eligibility criteria to Convert Partnership into an LLP in India
Can a Partnership be converted into LLP? Yes, you can. But before you’re allowed to convert a partnership into an LLP, you must fit the following criteria
Documents required for converting a partnership firm into an LLP in India
Draft documents for conversion of Firm into an LLP
· Designated Partner Identification Number (DPIN): Filing an application under DPIN must be obtained for all partners
· Digital Signature Certificate (DSC): This is necessary to apply for digital authentication of the company
· Form LLP-1: This E-form must be filled to add “LLP” to the existing firm name. The registrar will accordingly verify any resemblance to the existing firm names or trademarks registered or pending registration.
· Draft of LLP agreement
· Form-17 with Registrar of Companies (ROC): This is an application of conversion that must be filled with the following attachments
Ø Statement of the consent of Partners for conversion
Ø List of all creditors along with their consent to conversion
Ø Statement of assets and liabilities of the company duly certified by a CA
Ø Approval from any other body/authority may be required. Approval of the governing council for professional firms
Ø NoC from Income Tax authorities
Ø Financial statements of the Partnership Company
Ø Particulars of any court proceedings
Ø Rejection letter of ROC in case of any earlier conversion application
Process for converting a Partnership firm into an LLP in India
Procedure for conversion of Partnership firm to an LLP
Can a Partnership be converted into LLP? Yes. And the process to convert a partnership firm into a Limited Liability partnership is as follows:
Our Assistance in converting your Partnership into LLP in India
We at Registrationwala provide end-to-end solutions for the conversion of a Partnership to an LLP. Our services include:
Registrationwala.com is a leading legal consultancy firm providing comprehensive services relating to a partnership firm to LLP conversion. We do the legwork necessary to give the Limited liability factor to your standard partnership firm.
So, take your first steps towards this conversion and reach out to us.
Q1. Can we convert a Partnership firm to an LLP?
A. Yes. You just have to follow the above-mentioned procedure. Or you connect with us at registrationwala.com to know about the conversion procedure.
Q2. What is a Partnership firm?
A. A firm where two or more people share ownership of the business is a partnership firm.
Q3. How does a Partnership firm function?
A. In a partnership firm, each partner contributes to all aspects of the business. The partners also share the profits and losses of the business.
Q4. What is the full form of an LLP?
A. LLP stands for Limited Liability Partnership.
Q5. What is an LLP?
A. An LLP or a Limited Liability Partnership is a business arrangement where all partners have limited liabilities. One partner is not responsible for the other partner’s diligence or negligence.
Q6. Can a Partnership be converted into an LLP firm?
A. Yes. You just have to follow the above-mentioned procedure. Or you connect with us at registrationwala.com to know about the conversion procedure.
Q7. Is it a good idea to convert a Partnership firm into an LLP?
A. For those who want to be on the safe side when doing business, it’s a good idea to convert your Partnership into a Limited Liability Partnership. By doing so, you’re going to combine the partnership aspect of a firm with the Limited Liability aspect of a company.
Q8. What are the benefits of converting a Partnership into an LLP?
A. The following are the advantages of conversion:
Q9. What are the pre-conditions that must be satisfied by the Partnership firm seeking LLP conversion?
A. Can a Partnership be converted into LLP? Yes, you can. But before you’re allowed to convert a partnership into an LLP, you must fit the following criteria:
Q10. What documents must be submitted along with the application for converting a partnership firm into an LLP in India?
A. Draft the following documents for conversion of Firm into an LLP:
Q11. How to convert a Partnership firm into an LLP?
A. Can a Partnership be converted into LLP? Yes. And the process to convert a partnership firm into a Limited Liability partnership is as follows:
Q12. How can the Registrationwala help you in converting your Partnership firm into LLP in India?
A. We at Registrationwala provide end-to-end solutions for the conversion of a Partnership to an LLP. Our services include: