Convert Partnership to LLP

Convert proprietorship to LLP to leverage on added benefits with limited liabilityGet entry into flexible corporate structure with Limited Liability

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    Convert partnership to LLP

    Limited Liability Partnerships (LLPs) offer significant advantages over traditional partnership structures, providing greater benefits to the partners involved. Unlike general partnerships, an LLP is a distinct legal entity that requires mandatory registration with the central government. This business model combines the benefits of a corporation’s formal structure with the flexibility of a partnership, allowing for organized internal management and operations. Therefore, converting a partnership firm into an LLP is a prudent business move to safeguard partners’ rights and limit their liabilities.

    Benefits of partnership to LLP conversion

    Limited Liability of Owners

    In an LLP, the liability of partners is restricted to the amount of capital they have contributed as outlined in the LLP Agreement. Even in the event of liquidation, the losses or debts of the LLP cannot be attributed to the partners. Additionally, no partner is held liable for the negligence or misconduct of any other partner.

    Tax benefits

    An LLP avoids Dividend Distribution Tax, Minimum Alternative Tax, and Income Tax because it pays interest and remuneration to partners in the form of salary, similar to the compensation paid to directors.

    separate legal entity

    A partnership does not constitute a separate legal entity. If a partner dies, retires, or otherwise exits the firm, the partnership dissolves, requiring the formation of a new partnership. However, this is not the case with a Limited Liability Partnership (LLP), which is recognized as a distinct legal entity.

    Raising Capital

    Raising capital is more straightforward in the LLP structure because it permits limited partners to contribute without assuming any liability, unlike a general partnership where all partners face unlimited personal responsibility.

    Documents required for conversion into LLP

    PAN Card

    PAN Card of all partners and the firm Foreign nationals may provide passport

    NOC from owner

    No Objection Certificate to be obtained from the owner of registered office

    ID 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

    RoF

    Certificate In case the partnership firm is registered, RoF certificate is compulsory

    Business Address Proof

    Electricity Bill/ Telephone Bill of the registered office address

    Note

    In case of NRI or Foreign National, documents of partner must be notarized or apostilled

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    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