Convert Partnership to LLP in
3 simple steps, you get
- Documents Review
- Expert Guidance
- PAN & TAN
- DIN
- Digital Signature Certificate
- Name Reservation
- MOA/AOA
- Certificate of Incorporation
Let's incorporate your Limited Liability Partnership !
Introduction
Converting a traditional partnership into a Limited Liability Partnership (LLP) is a strategic transition that introduces a layer of protection and flexibility to the existing business structure. A partnership, while fostering collaboration and shared decision-making, often exposes partners to personal liability for business debts.
In contrast, an LLP offers the advantage of limited liability, shielding partners’ personal assets from the company’s financial obligations. This transformation allows for a more resilient and regulated business model, combining the collaborative spirit of a partnership with the risk mitigation benefits of a limited liability entity.
As Bright Accounts, we offer seamless assistance in converting your partnership to LLP. Our expert team guides you through the entire process, ensuring a smooth transition. From document preparation to filing and compliance, we handle every aspect to make the conversion hassle-free.
The whole process will be managed by a Certified Chartered Accountant and Company Secretary
Documents Checklist
We have compiled a detailed list of documents required to convert your Partnership to LLP
Identity Proof
- Document Proof of Partners
- Notarized documents (For Foreign Nationals)
Address Proof
- Utility Bill or Bank Statement
For Registered Office
- Utility Bill or Bank Statement
- Notarised Rental Agreement
- No Objection Certificate from the property owner (NOC)
- Property Deed (if applicable)
process
Conversion Process
in 3 Simple Steps
At Bright Accounts, we have simplified the entire conversion process of a converting Partnership to LLP into 3 simple steps. This makes your journey smooth, structured and easy.
- Pre-application
- We collect basic information
- Gather required documents
- Obtain Digital Signature Certificate
- Drafting & Application
- Drafting LLP Agreement
- Apply for DPIN
- Name Reservation
- Filing Form-17
- Apply for Incorporation of LLP
- Intimation to RoC (Form-14)
- Approval
- Receipt of Certificate of Incorporation
- Update Bank Details
After successful submission and verification you will be receive a Certificate of Incorporation which can then be used to open a new bank account or update details in an existing bank account.
benefits
What's Good
about converting Partnership to LLP
Limited Liability Protection
Partners in an LLP enjoy limited liability, protecting personal assets from business debts and legal obligations. This shields individuals from potential financial risks associated with the business.
Tax Efficiency
LLPs offer tax advantages by being taxed at the entity level, while profits can be distributed to partners and taxed at their individual rates. This flexibility in taxation provides strategic advantages.
Separate Legal Entity
An LLP functions as a distinct legal entity, providing the partnership with a recognized identity. This separation allows the LLP to enter into contracts, own assets, and engage in legal proceedings independently.
Transferability of Ownership
The LLP structure facilitates easy transfer of ownership. Changes in the partnership structure can be accommodated more seamlessly, offering greater adaptability.
Perpetual Succession
Unlike traditional partnerships, an LLP benefits from perpetual succession. The business can continue to exist and operate seamlessly despite changes in partner composition.
Transparent Governance
Subject to regulatory guidelines, LLPs adhere to transparent governance practices. This includes the preparation of financial statements, filing of annual returns, and compliance with regulatory requirements.
What do you get
when you work with Bright Accounts
Convert your Partnership to LLP
When you convert your Partnership to LLP with the help of Bright Accounts, you not only get the items mentioned on the side, you also get a friend who advices, guides and helps you grow into a great business.
- Digital Signature Certifiate & DPIN
- Name Reservation
- Form - 17, Form- 14, Form - 3
- LLP Agreement
- Certificate of Incorporation
- Expert advice you can count on
- Our Bright support throughout the process
Why Bright Accounts
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Bright & Knowledgeable
Bright Accounts delivers high quality financial services by a team of bright and knowledgeable experts.
Always happy to help
Bright Accounts commit to provide dedicated support and assistance to our clients.
Professional & Approachable
We maintain a high level of professionalism while being easily approachable for our clients.
Easy & Quick
We focus on streamlining and simplifying the complex processes for our clients.
Prerequisites or Conditions
The following are conditions for Prerequisites for conversions of a Partnership to LLP
- All current partners of the partnership firm automatically become partners of the LLP. No new partners are introduced, and existing partners cannot cease to be partners during the application process.
- Every partner must possess a valid Digital Signature Certificate (DSC), and at least two partners are required to obtain a Designated Partner Identification Number (DPIN) before initiating the conversion application.
- The partnership firm intending to convert must be duly registered under the Partnership Act, 1932, ensuring compliance with the existing partnership regulations.
- Obtaining the consent of all partners involved in the partnership firm is mandatory for the conversion process. The willingness of each partner to transition to an LLP should be clearly established.
- The LLP formed after conversion must have the same partners as the original partnership firm. Any partner seeking removal from the LLP can be considered after the completion of the conversion process.
- All designated partners in the LLP must obtain Director Identification Numbers (DIN) or Designated Partner Identification Numbers (DPIN) as part of the regulatory requirements.
Frequently Asked Questions
No! registered and unregistered Partnership Firms can be converted into LLP.
The Registry of Companies (RoC) must receive a Yearly Return and Statement of Earnings from an LLC each year.
A partner is a member of an LLP, while a designated partner is responsible for compliance with the LLP Act and has additional legal obligations, such as maintaining books of accounts and filing documents with the RoC.
The result of converting a partnership company into an LLP is the dissolution of the partnership and the transfer of the partnership’s assets and obligations to the LLP. The LLP’s appointed members are the partnership’s partners.
The fees for conversion of partnership firm into LLP depend on various factors, such as the authorised capital, state in which the LLP is registered, and professional fees charged by the consultant assisting with the conversion.
The following types of persons cannot be included as a partner in an LLP – A minor, an undischarged insolvent, a person of unsound mind, a person who has been convicted of an offence involving dishonesty or fraud, a person who has been disqualified from being a director of a company under the Companies Act 2013
Bought Together
There are many reasons why clients choose Bright Accounts, but from our experience we have listed the four main reason why you should go with us.
Limited Liability Partnership Annual Compliances
Navigate LLP annual compliance effortlessly with Bright Accounts. Our dedicated team ensures timely submission and adherence to rules.
Outsource Accounting & Bookkeeping
Save valuable time, money and labor by outsourcing your accounting and bookkeeping tasks to Bright Accounts experts.
Simplify GST Annual Returns Filing process
Let Indirect Tax experts from Bright Accounts file your annual Goods and Service Tax Returns in a timely and convenient manner.