Partnership to LLP

Rs.12,999/-* Onwards


A Limited Liability Partnership (LLP) is proved to be a much better business vehicle than a regular partnership. Partners aren't disadvantaged by personal liability and the LLP does away with the excessive regulations of the Indian Partnership Act, 1932. Furthermore, there are certain tax benefits, no audit required below a certain capital, no cap with regard to number of partners or capital contribution requirements.

No partnership firm registered under Partnership Act, 1932 have been converted into Limited Liability Partnership since the introduction of LLP Act, 2008 due to more benefits like minimal compliances, tax advantages, limited liability, separate legal entity, etc. are involved with LLP format of business entity. Unregistered partnerships cannot be converted into LLP.

Procedure For The Conversion:

Approval of name for LLP in prescribed form.

File an application for conversion of a partnership into LLP.

File necessary firms of registered office and consent from each partner to become a designated partner in new LLP with ROC.

File LLP Agreement within 30 days with ROC.

Issuance of Certificate of Registration by ROC.

Send intimation to ROC regarding the conversion of a partnership into LLP.

Minimum Requirements For Conversion To LLP

Latest filing of Income tax returns.

Partners shall receive consideration only by way of allotment of shares in LLP.

Consent of all the unsecured creditors for the proposed conversion in LLP.

Minimum 2 Partners.

DPIN for all the Partners.

DSC for all the Partners.

Some sort of contribution from each partner.

At least 1 of the designated partners shall be a Resident in India.

FAQs

Yes, after acquiring DIN/DPIN an NRI or Foreign national can become a designated partner is LLP. However, at least one designated partner in the LLP must be an Indian Resident.

The main advantage is that in an LLP, there are fewer formalities after the business is incorporated. An LLP is preferable if you are offering professional services, like a lawyer or architect. A Private Limited Company is preferred if you want to launch a scalable enterprise.

You will find it hard to raise capital from investors or to attract talent to the business by issuing ESOPs.

At least two members are required for LLP registration.

Any individual/organization is capable to become the partner of LLP including foreigners/NRI’s.