Convert Private Limited Company to LLP

Convert to more simple business structure leaving behind complex business compliances

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    Conversion of a private company to LLP

    Securing capital is easier in a private limited company because it allows members to invest without incurring personal liability, unlike in a general partnership where all partners have unlimited personal responsibility. Additionally, the company provides multiple avenues for raising funds, such as private equity, employee stock ownership plans (ESOPs), and other financial mechanisms.

    Benefits of converting Pvt. Ltd Company to LLP

    Rewards and returns to partners

    In an LLP, partners receive various forms of compensation, including remuneration, a share of the profits, and interest on their capital. Remuneration is awarded for active involvement in the business, while the share of profits represents a portion of the earnings generated from business operations.

    Less Statutory Compliance

    The compliances to be fulfilled are less as compared to a Private Limited Company. An LLP is not required to maintain statutory records & registers. The requirement of a statutory audit is also relaxed in case of LLP.

    Independent liability

    No partner is held accountable for the unauthorized actions of other partners. Therefore, individual partners are protected from the repercussions of joint liability arising from another partner's improper business decisions or misconduct.

    Operational Flexibility

    The partners are directly associated with the day-to-day operations and management of LLP. Unlike a company, LLP is governed through the LLP Agreement which is executed mutually by the partners.

    Documents required to convert Private limited company to LLP

    NOC

    Consent of all the directors and shareholders of the company for conversion in the given format

    Financial Statements

    The financial statement of the previous year to be provided aling with ITR filed

    Clearance from tax authorities

    NoC from the tax authorities is required to be obtained

    Digital signature

    DSC of all existing directors

    Creditors approval

    List of all the secured creditors along with their consent

    Pvt.Ltd. company documents

    PAN card, certificate of incorporation, GST registration or any other applicable documents/registrations.

    Need assistance? Don’t worry, experts are here to help!
    Call us at: 1800 313 4151 or Email us: support@taxpen.in

    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

    Private Limited Company to LLP