img

Partnership To LLP

12450* Basic Package

CONTACT US

Overview

When it comes to business, India offers you diverse options. There are many forms of business that you can find, like partnerships, LLPs, private limited, public limited, and many more. As an entrepreneur, you have all the right to choose between these forms. But many businesses in India are initially small. Sometimes businesses also start in partnerships.  

While talking about the partnership, there are many disadvantages to a partnership business. One of the biggest disadvantages is the unlimited liabilities provided to the partner. It puts your personal assets at higher risk. To eliminate all these risks, you may convert your company to limited liability partnerships. Converting to LLPs takes all the risks away from the partnership business.

Partnership vs. LLP:

In the partnership firms, the firms don't have any separate identity from their partner. The partnership firms cannot hold any assets on their name. The Liability of a partner in a partnership firm is also not limited. It can also extend to the personal assets of the opposite partner. As a result, the action of an active partner can hold another partner liable.  

In partnerships firm, the highest limits of partners that can be added are fifty. If any firm has more than 50 partners, it becomes illegal. But in the case of LLPs, there is no ceiling limit.

Another worst thing in a partnership business is; death or removal of any partner in a partnership dissolves the firm. But LLPs don't get affected by any changes in partnership.  

The partnership firms are similar to any unregistered firm. A local registrar does the registration, and no online portal is available. LLP offers registration in the online portal of MCA. It is a centralized registration. In the partnership firms, there are no additional compliances except the income tax Act. The credibility is also low as compared to body corporates. However, LLPs offer you many benefits. It increases your creditworthiness and makes you a centralized organization. 

Filing LLP Form 17- The form to convert from a partnership to LLP:

To covert a partnership firm to LLP, an individual must file the LLP Form-17. It is the application and statement form that is essential for conversion of partnerships to LLP. There are various documents you need to attach, as well. These documents include:

1) Statement of the consents of partners of the partnership company

2) You should attach the Statements that state the assets and liabilities of the firm. The chartered accountant in practice should certify it.

3) You have to attach a copy of acknowledgment of the latest IT return. It is mandatory for anyone applying for conversions. 

4) Approval from any regulatory body or authority

5) You need to attach the list of all secured creditors along with their approval for conversion

6) NOC from the tax authorities

A successful conversion from partnership to LLP:

On the successful incorporation of all the processes, your partnership will convert to LLP. After the conversion, the registrar will issue a certificate of incorporation to your company. Once your partnership firm converts to LLP, the partnership firm would deem to be dissolved. Furthermore, the conversion of LLP will also convert all the assets, properties, rights, privileges, liabilities, and obligations to the LLP. In other words, the whole firm will now operate as LLP.

However, any approvals, permits, or licenses issued in writing shall not convert. So, you have to apply for new licenses or registration. 

Note: Before conversion, you should consider all the aspects of conversions from partnerships to LLP. It will help you make a better decision. 

Advantages

1. Separate legal entity:

Converting to LLP offers you numerous benefits. One of the major benefits is LLP is a separate entity. It can hold assets in its name.

2.Limited Liability of partners: 

In LLPs, the liabilities of the partner limits to their contribution. So, one partner will not get affected by the action of any other partner.

3.A number of partners:

In LLPs, the total number of designated partners is two. However, there is no ceiling limit.

4. Un-Interrupted existence:

The LLPs will never get affected by removal or death of any partner. 

5. Centralized Registration:

The registration of LLP is mandated. The registration is done in the online portal of MCA. Hence it gets all the benefits associated with centralized registration. 

6. Statutory compliance:

Statutory compliance in LLPs is in addition to compliance under the IT Act. These compliances offer transparency in operations and finance.

7. Data availability:

Registering in the online portal with MCA offers the documents to public extent. One can see the last balance sheet in the MCA portal. This offers higher credibility to these LLPs from other parties.

8. Unique brand identity:

In LLPs, the names are unique; they are not identical. It helps to make a unique brand identity.

9. Minimum eligibility to convert as an LLP:

To convert from a partnership firm to LLP, you need the following:

10. Digital signature:

Usually, the partners in a partnership firm do not have a digital signature. So, you would need to obtain a digital signature certificate from the partner. It is one of the essential things that you need to convert as an LLP.

11. DIN or DPIN:

DPIN is the designated partner identification number. It is also an essential element needed to convert as an LLP. To covert as an LLP, it is mandatory to have DIN of at least two members.

12. Name approval:

Once you obtain your DSC and DIN, the next thing that you need to do is apply for name approval. You can apply to the name reservation to the MCA. It is essential that you must obtain the name approval before filing the form.

Document Required

  • Proof of address of the registered office of LLP
  • Approval from the regulatory authority
  • Details of partnerships
  • Consent of partners
  • Subscriber's sheet including consent
  • Detail of company in which a partner is a director
  • LLP form no-2 filed with all details
  • LLP form no-3 filed with all necessary details
  • List of certified liabilities and assets

Time Lines

  • (10 to 15 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with registrar authorities
  • Receipt of Registration Certificate
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

12450*
  • Expert Consultation
  • 2 DPIN Application (if DPIN of directors are not available)
  • 2 DSC token
  • LLP Deed / Agreement
  • Capital / Contribution Rs. 1 Lakh
  • Incorporation Fee and Stamp Duty Fee
  • Registration with MSME
  • Conversion Process

Business

14950*
  • Expert Consultation
  • 2 DPIN Application (if DPIN of directors are not available)
  • 2 DSC token
  • LLP Deed / Agreement
  • Capital / Contribution Rs. 1 Lakh
  • Incorporation Fee and Stamp Duty Fee
  • Registration with GST
  • Registration with MSME
  • 3 months GST return filing upto 50 invoice per month
  • Conversion Process

Enterprise

18450*
  • Expert Consultation
  • 2 DPIN Application (if DPIN of directors are not available)
  • 2 DSC token
  • LLP Deed / Agreement
  • Capital / Contribution Rs. 1 Lakh
  • Incorporation Fee and Stamp Duty Fee
  • Registration with GST
  • Registration with MSME
  • ESI and PF Registration
  • 3 months GST return filing upto 50 invoice per month
  • 3 months account upto 75 entries per month
  • 10 MOA / AOA
  • Conversion Process
  • Note:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.
  • Capital / Contribution more than Rs. 1 Lakh, additional fee required as per the specific state law.

Related Posts

Subscribe To Our Newsletter

To get the latest news on changes of compliance