Requirements for conversion of Partnership firm to LLP

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Requirements for conversion of Partnership Firm to LLP

  1. Partnership firm shall be registered under Indian Partnership Act, 1932.
  2. LLP incorporated by conversion of Partnership Firm to LLP must have same partners.
  3. Consent of all the unsecured creditors for the proposed conversion in LLP.
  4. Up to date filing of Income tax returns
  5. The partners shall receive consideration only by way of allotment of shares in LLP
  6. At least 1 of the partners proposed to be designated partners shall be an Indian Resident

Required Documents

  • Proof of the LLP’s registered office’s address.
  • Consent of the subscriber.
  • Copy of utility bills and a letter of authorization from the property owner (not more than 2 months old).
  • If necessary, approval from any regulatory authority.
  • Any LLP/Company where a designated partner is also a director/partner should be listed.
  • The applicants’ proof of identity and address.
  • Where the LLP’s name is identical to that of an existing Company/LLP, a copy of the existing LLP’s Board Resolution or Consent serves as a No Objection Certificate.

Procedure for Conversion

Name Approval for LLP

The name for LLP shall be applied through RUN facility on MCA website. The reserved name then has a 90-day validity term.

Filling of Form 17

(application for converting partnership to LLP)

Form LLP

3 must be used to submit the LLP Agreement. Within 30 days of the LLP’s incorporation, the LLP Agreement must be presented in Form LLP-3.

The Partnership Firm is presumed to be dissolved once the LLP is formed and the Partnership Firm is converted. Furthermore, when a partnership is converted to an LLP, all of the assets, firm’s properties, rights, interests, privileges, duties, and liabilities are transferred to the LLP.

Any permissions, license, or permission granted to the Partnership Firm under any written legislation will not be immediately transferred to the LLP. As a result, new licenses or registrations may be needed. It is vital to evaluate the aspect of converting a partnership into an LLP before beginning the conversion process.

Setting up business

Private Limited company
Proprietorship
DIN
PAN
EPF

ROC Compliance

LLP ROC Compliance
OPC ROC Compliance
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Closure of Private company
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Direct tax compliance

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Taxation of business
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Indirect tax compliance

GST returns and due dates
Input tax credit claim
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