Benefits of Conversion of Partnership to LLP
Limited Liability of Partners
As a Limited Liability Partnership (LLP) is a stand out legal entity, which can enter into contractual relationships in its own capacity since it offers a great advantage to its partners for limiting their personal risk. Liability of financial contribution of any partner is restricted to the capital contribution as per the LLP agreement. Lot of new age companies prefers to go with LLP registration over partnership so that their personal assets remain safe in case of loss or even insolvency. More over one partner doesn’t require taking the entire responsibility for the actions of negligence or misconduct of any other partners.
Show MoreSeparate Legal Existence
A Limited Liability Partnership (LLP) has a separate legal identity than of its partners and it is governed by the LLP act 2008. As LLP is a separate legal entity, it can take legal actions, own assets and borrow funds in its name itself where as a partnership firm can’t do the above in its own identity.
Show MoreLesser Compliance Requirement
A LLP requires lower compliances compared to a Private Limited Company. Audit report is not mandatory for LLPs until it reaches certain level of turnover. Company compliances like board meeting, statutory meeting etc. do not applicable for LLP. Professional service charges are cheaper to maintain compliances for a LLP over a Private Limited Company.
Show MoreFlexibility of Operation
Limited Liability Partnership Agreement/deed among partners of LLP, clarifies operating structure including rights and responsibilities of partners. With LLP agreement, one of the selected partner/business by all other/s is appointed as ‘Designated Partner’, who is responsible for day to day operations of the company. Either an existing company or an individual can be Member at a LLP agreement. The LLP agreement allows defining the roles of each partnerand their respective responsibilities, which help protecting a partner’s interest in case of loss because negligence or misconduct of any other partner/s.
Show MoreConvert Partnership to LLP Online
Documents Required to Convert Partnership firm to LLP
- PAN Card PAN Card of all the partners
- PASSPORT Foreign Nationals may provide Passport.
- Address Proof of the designated Partners Address Proof of all the designated partners (Aadhaar Card/ Voter ID / Passport/ Driving License or any other valid address proof issued by State/Central Governments)
- Photograph Latest Passport Size Photograph of all Partners.
- Business Address Proof Latest Electricity Bill/Telephone Bill of the Registered Office
- No Objection Certificate NOC from the Owner of Office Buliding (If the proposed registered office premises is rented)
- Rental Agreement Rental agreement of the registered office if the office is rented
- Registration Certificate In case the partnership firm is registered with Registrar of Firms (RoF) or any other kinds of government registration such as GST or MSME etc.,
- Notarization If any partner of the LLP is a foreign citizen, documents of that partner should be notarized or apostilled.
LLP Name Structure
Build a Unique Identity
Identification plays an important role in making a business outstand in competitive market, build unique and distinctive name for your business hence enhance your brand’s trust and value. Consumers should identify activity of your business from the brand name so that they can relate your business with its offerings.
Even though it meets all the above criteria, once again make sure that the brand name to be short, easy to remember and simple to pronounce or spell.
Mention Constitution Type on Your Brand Name
The name of a registered Limited Liability Partnership must end with LLP or Limited Liability Partnership as suffix. (Example: ABC CONSTRUCTIONS LLP)
Register Online
Convert Partnership to LLP in 3 Easy Steps
- Fill up the Registration Form
Select any Package suits your requirements
Fill up the form which will take less than 10 minutes
Make payment through secured payment gateway.
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Provide details & upload documents required for LLP registration
Application for Name Reservation
Preparation and filing of application for LLP Registration
Application for Director Identification Number (DIN)
Application for PAN and TAN
Drafting LLP Agreement and other required documents.
- Your LLP Firm is incorporated.
All these take 15 to 20 Working Days to register and incorporate your LLP*.
*Subject to government processing time.
The Process of Convert Partnership firm to LLP
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Day 1 – 2
Collection of Basic Information
Collection of required documents (scanned copies)
Application for Digital Signature Certificate
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Day 3 – 4
Checking LLP Name availability
Application for LLP name reservation under “LLP-RUN”
Reservation of LLP Name
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Day 5 – 10
Drafting LLP incorporation document
Review and Confirmation form Partners
Filing application for LLP Registration
Application for DIN allotment for Designated Partners
Certificate of LLP Incorporation
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Day 11 – 13
Application for PAN and TAN of LLP
Drafting LLP Agreement
Review and confirmation from Partners
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Day 14 – 18
Payment of Stamp Duty
Filing of LLP Agreement
*Government process time may be change due to any circumstance. We hold no responsibility in such delay if in case any.
Enquiry
FAQ
What are the primary requirements for the conversion of a partnership firm into an LLP?
The partnership is required to consist of the same partners that were present in the original Partnership and in the same proportion in which their capital accounts stood in the books of the Firm on the date of conversion. Therefore, the LLP cannot have more or less partners than the extant Partnership Firm, and any changes in the number of partners can be made only after conversion into the LLP.
Is there any minimum capital requirement for registering a LLP?
No. There is no minimum amount of capital requirement as per the law and partners can rise any amount of capital that the business demands.
What are the requirements to be a partner/Designated partner for a LLP in India?
As the LLP act 2008 allows Foreign Nationals, Foreign Companies or LLPs to incorporate an LLP in India, there is no limitation in terms of nationality or residential status for being a partner in a LLP in India, but it is mandatory that the LLP in India should at least have a Indian citizen who is the permanent resident of India as a Designated Partner. The partner or Designated Partner should be of age 18 or more to make sure he/she is competent enough to enter in to a contract.
How can we reserve a name for Limited Liability Partnership?
The name of a LLP is reserved through a web based application ‘LLP-RUN’ (Reserve Unique Name), the name availability is an essential part of Limited Liability Partnership registration in India. The partners can give maximum two names in preferential order to reserve any one. If both the names won’t meet the criteria of uniqueness, relevancy or does not fulfill the necessary requirements, the registrar may ask to re-submit the application with different name.
What is Director Identification Number (DIN)? Is DPIN (Designated Partner Identification Number) is required for LLP registration?
The concept of DPIN (Designated Partner Identification Number) is replaced by DIN (Director Identification Number) with respect to LLP registration in India. DIN is a unique number assigned by Ministry of Corporate Affairs to partners of the LLP. This allows any individuals to be director in any company or Designated Partner in LLP. The application of DIN allotment is made with the application of registration of LLP.
What is the Digital Signature Certificate? Who shall procure DSC for LLP Registration?
Digital Signature Certificate for LLP is provided in the form of a token and issued by Certified Authorities. Any form filed for incorporation of Limited Liability Partnership (LLP) in India online should be submitted after affixing Digital Signature of Designated Partner.
Whether place of office is required to register a LLP in India?
Yes. As Limited Liability Partnership is a Legal Entity of its own Identity, it should have a registered office. The registered office address can be either of a residential building or a commercial building. In most cases, the address is used for the communication purpose by the Ministry of Corporate Affairs or any other concerned authorities.
What is LLP Agreement? Does it needed to be registered with Ministry of Corporate Affairs?
Limited Liability Partnership agreement is an agreement executed by all the partners of a LLP after LLP incorporation in India. The agreement prescribes all the clauses related to the business including the rights, role, duties and responsibility of partners in LLP. The agreement must be filed with Ministry of Corporate Affairs within 30 days of the issue of Certificate of Incorporation of LLP. Failure to do so will charge an additional fee of 100 per day till the date of filing.
Can a LLP carry on more than one business activity?
Yes. A Limited Liability Partnership registered in India can carry on more than one business subjected to its relevancy. The activities must be related or in the same field itself. Unrelated activities such as Trading and Legal Consultancy cannot be carried out under the same LLP. The business activities must be mentioned in the agreement and to be approved from Registrar of Firms (RoF).
Whether LLP can be registered for Non Profitable business?
No. One of the essential requirements of setting up a LLP is ‘carrying on a lawful business with a view to profit’. There for LLP cannot be incorporated for undertaking ‘Not for Profit’ activities.