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Convert LLP to Private Limited Company
Upgrade Your LLP to a Private Limited Company for Greater Growth and Limited Liability
₹ 13000 only
Convert LLP to Private Limited Company
In India, private companies are a widely adopted business structure, offering significant opportunities for growth and development. They are particularly advantageous for raising equity capital, which is not feasible with an LLP. The LLP structure may not be ideal for owners seeking venture capital or private equity investments, as investors typically prefer to invest in private limited companies rather than partnerships or LLPs.
Additionally, foreign direct investment (FDI) in private limited companies can be conducted without the need for approval, allowing for a more straightforward process compared to an LLP. This is especially relevant for promoters or owners who are NRIs or foreigners, as forming a private limited company is generally a more favorable option than opting for an LLP. Therefore, conversion is essential to meet these specific requirements.
Benefits of Converting LLP into a private Limited Company
Rewards and Returns for Partners
The rigorous registration process enhances the credibility of this structure, making it easier to raise funds or borrow from external sources. The organization offers various avenues for capital acquisition, including private equity, employee stock ownership plans (ESOP), and more.
ESOPs for Employees
Only private limited companies can provide stock ownership and Employee Stock Option Plans (ESOPs). This approach attracts employees by offering them incentives tied to the company's growth and success, fostering a sense of shared investment in the business.
Separate Legal Existence
The distinct separation of ownership and management allows both the company and its management to concentrate on their respective roles. Shareholders delegate operational responsibilities to management while retaining control through voting rights.
Separate Legal Existence
The company's obligations or debts do not impose a claim on the owner's personal assets. Their liability is confined to the capital they have subscribed and not yet paid.
Complete Registration Form
Provide us required Documents
Make an Online Payment
Our expert team will manage the Conversion of LLP to Private Limited Company
Certificate of incorporation will be mailed after completion of registration
How to Convert LLP to Private Limited Company with Corporate Shastra
Documents Needed for Conversion to Private Company
PAN Card: PAN Card of shareholders and directors. Foreign nationals may provide passport.
Identity Proof: Voter ID/ Passport/ Driving License of Shareholders and Directors.
Address Proof: Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors.
Photograph: Latest Passport size photograph of Shareholders and Directors.
Business Address Proof: Latest Electricity Bill/ Telephone Bill of the registered office address.
NOC from owner: No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement: Rent Agreement of the registered office should be provided, if any
Copy of ITR: A copy of the latest income tax return filed by the Limited Liability Partnership.
Note: In case of NRI or Foreign National, documents of director(s) must be notarized or apostilled
Explore Conversion from LLP to Private Limited Company
What are the statutory requirements to be fulfilled once Private Company is registered?
Once, the company is registered, it should follow below-mentioned requirements on priority:
Opening a current account of the company
Appointment of Statutory auditor
Deposit of paid-up capital mentioned while registration
Issue and allotment of shares
How many DIN can be apply through SPICE Form?
What is the minimum Capital Requirement?
Comparison of Business Structures
Proprietorship | Partnership | OPC | LLP | Private Limited | |
|---|---|---|---|---|---|
Ownership | Sole Ownership | Min 2 partners Max 50 partners | Only 1 member | Min 2 Designated Partners | Min 2 Directors Min 2 Shareholders Max 15 Directors Max 200 Shareholders |
Separate
Legal Entity | No | No | Yes | Yes | Yes |
Applicable Law | No specified Act | Partnership Act, 1932 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Companies Act, 2013 |
Statutory Audit | Not Mandatory | Not Mandatory | Mandatory | Based On Applicability | Mandatory |
Liability | Unlimited | Unlimited | Limited | Limited | Limited |
Perpetual Existence | No | No | Yes | Yes | Yes |
Ownership Transferability | No | Yes (Restricted) | Yes (Restricted) | Yes | Yes |
Taxability | Low | High | Moderate | High | Moderate |
Compliance
Requirement | Low | Low | High | Moderate | High |