Conversion of a partnership firm into a limited liability partnership

 

It is much more beneficial for the partners to form Limited Liability Partnerships rather than general partnerships. It is a business structure that integrates the advantages of the company's corporate structure and the flexibility of a partnership. As per Section 55 of the Limited Liability Partnership Act 2008 read with Schedule II of the Act, a partnership firm may be converted to an LLP.

An LLP is a separate legal entity with compulsory registration with the central government, which is not the case with a partnership firm. Below are some of the features that make LLPs more attractive than partnership firms:

1.Liability protection, 2.Survivorship, 3.The ability to take on an unlimited number of partners 4.Transfer of ownership is easy.

Converting a partnership into an LLP involves the following steps:

A step-by-step guide for converting a partnership firm into an LLP:

1.Obtain digital signatures from all partners.

For the registration of conversion of partnership firm into LLP, it is not necessary for partners to have a digital signature.

2.All partners in LLPs must have DPINs/DINs. Obtain DPINs/DINs for all partners in LLPs.

Every LLP partner or director has a DIN.

3.You must fill out the RUN-LLP Form on the MCA website in order to reserve a name.

Check the rules for selecting LLP names before applying for a reservation of name.

4. Convert a partnership firm into an LLP by filing Form FiLLiP for Application and Statement.

Form FiLLiP and documents for LLP registration.

5.Once the process of incorporation is complete by filing Form FiLLiP, the next step is to register the LLP Agreement with MCA.

Fill out LLP Form 3, which contains the details of the LLP agreement as well as the resolution of the partners with the MCA, for Change in LLP Agreement registration.

6.Upon successful conversion into an LLP, the ROC shall issue a Certificate of Incorporation.

Furthermore, the Partnership Firm would be dissolved when the LLP is incorporated and the Partnership Firm is converted.

Also Read:

Online PPF Calculator

Compound Application

Change in address of registered office

private limited company to opc







Location: India

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