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LLP form of business organisation has the advantages over Company and Partnership in terms of recognition, compliance and flexibility of operation. It is advisable for existing business structures such as partnership and companies to convert into LLP taking into account of their present level of operation.
The following forms of existing business organisations are eligible to be converted to LLP after complying with the requirements of LLP Act 2008.
- Partnership
- Private Limited Company
- Unlisted Public Limited Company
Procedure for converting your business to LLP
PARTNERSHIP
Preconditions
- Partnership should be a registered under Indian partnership Act 1932
- All the partners of firm should become the partners of LLP
- Minimum 2 partners as Designated Partners and one of them should be resident in India
- Digital Signature Certificate for one of the Designated Partners
- LLP Name
- LLP Agreement
- Registered Office
Procedure
- Obtain name approval for LLP
- Application for conversion of firm to LLP in Form 17
- File the following forms along with a statement by all partners with registration number and date of registration of the firm.
| Form 2 : |
Details of partners, registered office etc |
| Form 4 : |
Consent of Partners - Consent of each partner to become a partner of Liability Partnership |
| Form 3 : |
LLP agreement - this can be filed with in 30 days from the date of registration |
- After verification, registrar will register all documents and issue Certificate of registration
- Upon registration of LLP, file an intimation to the Registrar of Firms stating the fact that firm is converted into LLP
PRIVATE LIMITED COMPANY / UNLISTED PUBLIC LIMITED COMPANY
Preconditions
- The company should be registered under Companies Act, 1956
- There should not be any security interest subsisting on the assets of the company at the time of application
- Partners of LLP should comprise all the shareholders of the company and no one else.
- Minimum 2 partners as Designated Partners and one of them should be resident in India
- Digital Signature Certificate for one of the Designated Partners
- LLP Name
- LLP Agreement
- Registered Office
Procedure
- Obtain name approval for LLP
- Application for conversion of firm to LLP in Form 18
- File the following forms along with a statement by all partners with registration
- number and date of registration of the firm.
| Form 2 : |
Details of partners, registered office etc |
| Form 4 : |
Consent of Partners - Consent of each partner to become a partner of Liability Partnership |
| Form 3 : |
LLP agreement - this can be filed with in 30 days from the date of registration |
- After verification, registrar will register all documents and issue Certificate of registration
- Up on registration of LLP, file an intimation to the Registrar of Companies in Form 14 stating the fact that the company is converted into LLP
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