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Wants to do business in a more planned way. Convert your Partnership Firm to LLP today.
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A limited liability partnership [LLP] is a cross breed offspring of a partnership and a limited company. A partnership is not a distinct legal entity in law and has no separate existence apart from the partners that constitute it. A partnership cannot own property in its name and what is loosely called ‘the estate of the partnership’ is in fact the bundle of all the assets and liabilities owned by the partners together in joint.
On the other hand, a limited company is a separate entity distinct from its own shareholders and is legally competent to own properties in its own name as well as transact in its own name. Whereas in a partnership, a partner is personally liable for the firm’s debts, the liability of the shareholder of a limited company to such debts of the company is limited to his shareholdings.
Yet, with all these defects, a partnership firm is operationally easier in functioning, whereas a limited company is burdened with too many hassles inlegal compliances.
The Partnership Firm which wants to convert itself to LLP must be registered under Indian Partnership Act, 1932. Unregistered Partnership Firm can’t be converted to LLP. LLP incorporated by conversion of Partnership Firm to LLP must have same partners as they were in the Partnership Firm.
The liability of all the partners is limited in an LLP. The personal assets of the partners will not be confiscated to pay the losses incurred by the company.
Limited liability also means that the partner is immune to the consequences that arise as a result of the wrongdoings of other partners.
There is no minimum capital requirement for incorporating an LLP.
There is no requirement for an audit in case of LLP’s unless the annual turnover crosses the limit of 40 lakhs INR or the capital contribution exceeds 25 lakhs INR.
There is a facility for easy transfer of ownership in an LLP. Unlike, the traditional partnership, the introduction of a new partner does not affect its existence.
An LLP is a separate legal entity in its capacity. It follows the principle of perpetual succession. The addition of a new partner or an exit of existing one does not dissolve its existence. Additionally, the assets of the business are not owned by the partners.
It is also exempted from various taxes such as dividend distribution tax and minimum alternative tax. The rate of tax on Limited Liability Partnership is less than as compared to the company.
♦ Photograph of all the Partner♦ PAN Card of all the Partner♦ ID Proof of all the Partner (Driving License/Passport/Voter ID/Aadhar Card)♦ Electricity Bill, or any other utility bill for the address proof of the Registered Office
♦ Copy of bank statement
♦ Email ID and mobile number
♦ Rent agreement on the name of the company (No Objection Letter (NOC) from the landlord with his/her consent to use the office as a registered office of a company must be submitted)
♦ Minimum of two designated partners is necessary for LLP registration. However, there is no limit for the maximum number of partners (Partners can be either Individual or Body Corporate)
♦ Minimum one Designated Partner must be an Indian resident.
♦ DPIN (Designated Partners Identification Number) for all Designated Partners
♦ Passport: (In case of NRI or foreign national as a partner): Passport should be notarized or apostilled as applicable by the relevant authorities
A Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for processing. Our expert team will verify documents and proceed with LLP Formation Procedure. All throughout the process, your dedicated Compliance Manager will keep you updated on the progress of LLP Registration.
Once you submit your documents along with Checklist, we will proceed with the application of your DPIN (Designated Partner Identification Number), Digital Signature and subsequently name approval. If you already have DIN, DPIN is not to be obtained again. Names should be unique and suggestive of LLP’s business. Name approval is received usually 1-2 days.
Once the name is approved, we will prepare an LLP Agreement. We will then file incorporation documents with MCA. Usually, MCA approves the forms within 6-7 days once filed, subject to processing time and issues Incorporation Certificate. PAN & TAN will then be separately applied for your LLP. You may then proceed to open your LLP Bank Account, once PAN is allotted.
According to the LLP Act 2008, a minimum of two designated partners is required to register an LLP. The designated partners are responsible for the overall operations of the firm.
Usually, we covert Partnership Firm into LLP in maximum 15-20 business days.
LLP Agreement defines the internal constitution of the partnership, overall mission, vision, business objectives of the organization firm in log run.
Yes, a Foreign National or an NRI can become a Partner of a LLP in India after obtaining Designated Partner Identification Number (DPIN). However, it may be noted that at least one Partner must be a Resident India.
On the case of LLP partner is a general term. Any no. of people can be appointed as a partner but at least 2 people must be named as a designated partner. Designated partners are responsible for doing all the necessary act and make sure that all the provisions are adhered to and compliances are done on time. In case of any default, such designated partners are liable to pay off penalties imposed on LLPs.
Yes, an existing partnership firm can be converted into LLP by complying with the Provisions of the LLP Act.
Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of the LLP Act.