Want to convert Partnership Firm to Limited Liability Partnership (LLP)?
LLP is an alternative to corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. LLP is governed by LLP Act 2008. Liability of partners is limited except where an Act is carried out by the LLP with intent to defraud creditors or any other person or for any fraudulent purpose. The reasons behind conversion are that there is no limit on number of partners, limited liability, separate legal entity, etc.
The Partnership Firm which wants to convert its Firm into Limited Liability Partnership (LLP) should be registered under Indian Partnership Act, 1932.
The licenses or permits issued to a Partnership Firm does not get transferred instead LLP has to apply for new licenses or permits at the time of conversion.
- 2 DIN (Director Identification Numbers)
- 2 DSC (Digital Signature Certificate)
- Name approval
- Drafting of LLP agreement
Procedure for conversion:
- Consent of all the partners to be taken before conversion
- Obtaining DSC and DIN
- Verification and Name approval
- Drafting of LLP Agreement
- Any other document as may be required
All the above documents need to be submitted to the Registrar and then after verification will get Certificate of Incorporation of LLP and also the LLP should intimate the Registrar of its conversion.
Advantages of conversion:
- Limited liability
- Minimum Compliance
- Separate Legal Entity
- No Stamp Duty is required for transfer