A company where two or more people share ownership of the business is a partnership company. In a partnership company, each partner contributes to all aspects of the business. The partners also share the profits and losses of the business. Whereas LLP, which is limited liability partnership, is a company where all partners have limited liabilities. Here, one partner is not responsible for other partners’ diligence or negligence.
Therefore, those of you 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 LLP
Before you’re allowed to convert partnership into an LLP, you must fit the following criteria
· All the partners should consent to decision to convert
· You should have cleared all the liabilities that you have as a partnership firm.
· If you’ve acquired any type of business certification under the name of the partnership firm, you need to acquire consent from the certifying authority as well.
· Consent from the suppliers of the partnership firm is also required.
The process to convert a partnership firm into a Limited Liability partnership is as follows:
· First, you must get approval to use the name of the partnership firm for the LLP.
· After acquiring the approval, you must gain the digital signatures of the designated partners.
· Then, you must draft a FORM-17 with the Registrar of Companies. It’s called the application of conversion.
· Obtain the consent from the partners, suppliers, investors and from those to whom you once owed any type of debt to.
· Create a statement of all the assets and liabilities
· Fill the form for incorporation of LLP online
· Obtain the Certificate of Incorporation of the LLP
· Draft an LLP agreement using the points mentioned in the partnership deed.
· Within 15 days of conversion from Partnership to LLP, intimate the Registrar of Firms about the conversion.
We, at Registrationwala provide end to end solutions for conversion from partnership to LLP. Our services include:
· DIN, DSC & Name Approval
· Submission of Form
· Reviewing the application and making changes if needed
· Obtaining Certificate of Incorporation
· Drafting the LLP agreement
Registrationwala.com is a leading legal consultancy firm providing the comprehensive services relating to partnership 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.