Proprietorship to Limited Liability Partnership
Convert proprietorship to LLP to leverage on added benefits with limited liability
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Benefits of conversion from proprietorship to LLP
Separate Legal Existence
A Limited Liability Partnership (LLP) is a distinct legal entity, separate from its partners, unlike a general partnership. This allows the LLP to own assets, enter into contracts under its own name, and pursue legal action against third parties in the event of disputes.
Flexibility to Operate
The LLP operates based on the terms outlined in the LLP Agreement. Partners determine how the LLP will function and allocate duties and responsibilities. This flexibility allows partners to establish their own management rules, a freedom not available in other business structures..
Limited Liability of Owners
The liability of partners in an LLP is confined to the amount of capital they have contributed, as specified in the LLP Agreement. Neither losses nor debts of the LLP can be transferred to the partners, even during dissolution. Additionally, no partner is held accountable for the negligence or misconduct of other partners.
Lower Compliance Requirement
In comparison to a Private Company, LLPs face fewer compliance requirements, including a reduced audit obligation. Statutory audits are only required when turnover or contributions exceed certain thresholds. Additionally, provisions such as holding partner meetings and operating through resolutions are more flexible and not mandatory in all situations.
Documents required for conversion into LLP
PAN Card
PAN Card of all partners Foreign nationals may provide passport
NOC from owner
No Objection Certificate to be obtained from the owner of registered office
Partner’s Address Proof
Aadhar Card/ Voter ID/ Passport/ Driving License of all partners
Rent Agreement
Rent Agreement of the registered office should be provided, if any
Photograph
Latest Passport size photograph of all partners
NRI/ Foreign National
In case of NRI or Foreign National, documents of partner must be notarized or apostilled
Business Address Proof
Electricity Bill/ Telephone Bill of the registered office address
Need assistance? Don’t worry, experts are here to help!
Call us at: 1800 313 4151 or Email us: support@taxpen.in
Formulation of LLP Name
Unique Name
Mainly it builds the LLP’s brand and preferably be a coined word
Business Object
Second part of the name should suggest a business activity of the LLP
Constitution Type
Name of the LLP must end with “LLP” or “Limited Liability Partnership” as suffix
Convert into Partnership in 3 Easy Steps
1. Answer Quick Questions
- It takes less than 10 minutes to fill in our questionnaire
- Provide basic details & documents required for proprietorship to partnership conversion
- Make payment through secured payment gateways
2. Experts are Here to Help
- Assigned Relationship Manager
- Drafting of Partnership Deed
- Payment of Stamp Duty on Deed
- Notary of Partnership Deed
- Application for PAN and TAN
3. Your Business is Established
- All it takes is 12 working days*
Process to convert proprietorship to LLP
Day 1-2
- Consultancy and assistance for conversion
- Collection of basic information & documents
Day 3– 5
- Application for Digital Signature Certificate (DSC)
- Application for DIN allotment of Designated Partners
Day 6– 7
- Checking Name availability
- Application for Name Reservation
Day 8 – 12
- Drafting the incorporation document
- Filing form for converting sole proprietorship to LLP
- Certificate of Incorporation
Day 13– 18
- Application for PAN and TAN of LLP
- Drafting of LLP Agreement, with conversion clause
Day 19– 21
- Payment of Stamp Duty
- Filing of LLP Agreement with MCA
- Government processing time