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Convert Partnership to LLP
Gain Access to a Flexible Corporate Structure with Limited Liability
₹ 15000 only
Convert Partnership to LLP
Limited Liability Partnerships (LLPs) provide several benefits that make them a more attractive option compared to general partnerships. Unlike general partnerships, LLPs are considered separate legal entities and must be registered with the central government. This structure merges the advantages of a corporate framework with the flexibility of a partnership, enabling a more adaptable approach to internal organization and management. As a result, transitioning a partnership firm into an LLP is a strategic move that strengthens partners' rights while also limiting their liabilities.
Benefits of Converting Partnership to LLP
Simplified Fundraising
The liability of partners in an LLP is limited to the amount of capital they have agreed to contribute as outlined in the LLP Agreement. In the event of liquidation, the losses or debts of the LLP cannot be imposed on the partners. Additionally, no partner is held accountable for the negligence or misconduct of another partner.
Tax Advantages
An LLP benefits from savings on Dividend Distribution Tax, Minimum Alternative Tax, and Income Tax, as interest and remuneration paid to partners are treated as salaries similar to those of directors.
Distinct Legal Entity
A partnership does not have a separate legal identity, meaning that if a partner dies, retires, or otherwise leaves the firm, the partnership dissolves. In such instances, a new partnership must be established. However, this is not true for a limited liability partnership (LLP), which exists as a distinct legal entity.
Capital Raising Opportunities
In an LLP structure, raising capital is more straightforward because it allows limited partners to contribute without assuming any liability, unlike in a general partnership where all partners share unlimited liability.
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Our expert team will manage the Conversion of Partnership To LLP
Certificate of incorporation will be mailed after completion of registration
How to Convert Partnership To LLP with Corporate Shastra
Documents Needed for Converting Partnership to LLP
PAN Card: PAN Card of all partners and the firm. Foreign nationals may provide passport.
ID Proof: Aadhar Card/ Voter ID/ Passport/ Driving License of all partners.
Photograph: Latest Passport size photograph of all partners.
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 of registered office.
Rent Agreement: Rent Agreement of the registered office should be provided, if any.
RoF: Certificate In case the partnership firm is registered, RoF certificate is compulsory.
Note: In case of NRI or Foreign National, documents of partner must be notarized or apostilled
Explore Partnership to LLP Conversion
What are the primary requirements for the conversion of a partnership firm into an LLP?
The partnership is required to consist of the same partners that were present in the original Partnership and in the same proportion in which their capital accounts stood in the books of the Firm on the date of conversion. Therefore, the LLP cannot have more or less partners than the extant Partnership Firm, and any changes in the number of partners can be made only after conversion into the LLP.
How to reserve the name for a Limited Liability Partnership?
Is there any minimum capital requirement for LLP registration in India?
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 |