Convert Partnership Firm To LLP

What is Convert Partnership Firm to LLP?

The world of business is constantly changing, and many partnership companies are shifting toward limited liability partnerships as it is considered a better way to run a business. In a regular partnership, only one person is responsible for all debts and loans. In a limited liability partnership, there is no need to follow all the rules and regulations of the Indian Partnership Act of 1932. If an LLP has low income, they do not need to hire an audit and also have tax benefits. If you want to convert a partnership into an LLP company, ApkaTax is the best option for you, as we have a highly professional team of members.

What are the Benefits of Convert Partnership Firm to LLP?

These are the advantages of a Limited Liability Company: 

• Different Identity: An LLP has a separate legal person from its partners, whereas a partnership does not. If things do not go properly in the company, partners can take legal action against each other. Additionally, even if partners leave, the business will continue unless everyone decides to close it. 
• Easy Flexibility: In an LLP company, it is easy to transfer the ownership. You can also easily add a new partner as a designated partner and quickly switch the ownership of the company. 
• Suitable for Small Businesses: If LLPs have limited capital and turnover, they don't need a separate audit person.They can own property in its name rather than the partners. 
• No Owner/Manager Divide: In an LLP, partners own and run the company. This is unlike private limited companies, as their directors might not be the same as shareholders. Because of this setup, venture capitalists usually don't invest in LLPs.

What is the Procedure for Conversion of Partnership Firm to LLP?

Registering a Limited Liability Partnership (LLP) in India involves many steps. ApkaTax offers a straightforward and effortless procedure. Here's an overview of the quick and detailed process for LLP registration:

• Obtain a Digital Signature Certificate (DSC): The first step to getting a Digital Signature Certificate. It is a necessary step for the LLP registration process.
• Director Identification Number (DIN): You must apply for the Director Identification Number (DIN). It is a unique identification number that is required for designated partners of the LLP company.
• Name Approval: After getting the DSC and DIN, you need to get approval of the company name from the Ministry of Corporate Affairs (MCA).
• Incorporation of LLP: Once your company name gets approved, you must submit the necessary details, including the incorporation documents, to the Registrar of Companies (RoC) for LLP registration.
• File Limited Liability Partnership (LLP) Agreement: Filing the LLP agreement to outline partners' duties and responsibilities is essential. 
• Filing of Form 3: To complete the registration process, you must submit Form 3 to the ROC, along with the LLP agreement and all required documents from the partners. 

The ApkaTax provides this seamless and systematic process to ensure a hassle-free transition from a Partnership firm to an LLP, enabling a smooth and efficient registration experience. For a more comprehensive understanding of each step, you can visit our ApkaTax website page. 

What is Documents Required for Partnership Firm Into LLP Conversion?

A specific document is required while transferring from a partnership to a Limited Liability Partnership (LLP). Here is the list given below:

• Proposed name of the LLP company 
• Details of the Partnership Deed of the partnership
• All directors Digital Signature Certificate documents
• LLP authorised capital 
• Information of the patners contribution in the company
• Registered office information 
• ID proof of the partners- Voter ID, Adhard card and other details 
• Latest bill of the Partnership Firm- Electricity bill, water bill or any other
• Adress proof of the registered office of the Partnership such as Lease deed/ Ownership Documents of the property
• All partners Permanent Account Number (PAN) 
• Partnership Audit information
• Bank statement details 
• Partnership Business main Objects 
• NOC of the Landlord of the company in case the office is rented 

Post Incorporation

• Certificate of Incorporation of the LLP 
• Documents that are submitted for FilliP

This compilation of documents is essential for a smooth and efficient conversion process. Ensure all records are authentic, valid, and compliant with the terms and conditions for a seamless conversion to an LLP.

What is Effect of Registration on Partnership Firm to LLP Conversion?

• Transfer of Assets and Obligations: If you register for the LLP, the partnership company will exist, and all the assets and obligations will transfer to the LLP.  
• Compliance with the LLP Act: The partners of the former partnership, now designated as partners of the LLP, must follow the rules and regulation as per the LLP Act.   
• Continuity of Operations: The transition allows the partnership's operations to continue without interruption under the LLP structure.
• Separate Legal Entity: The LLP functions as a distinct legal entity, enjoying perpetual existence irrespective of partner changes.
• Legal Actions and Proceedings: Ongoing legal actions against the partnership company may be directed toward the newly formed LLP, regardless of the nature of these actions or their outcomes.
• Tax Benefits: The LLP qualifies for various tax benefits, including the pass-through taxation system, enhancing its financial advantages.
• Continuation of Contracts: All ongoing contracts and arrangements involving the partnership company remain in force with the LLP as a party. 
• Assignment and Powers: Any assignments or powers given to the partnership are now transferred to the LLP to maintain the continuity of authorities and obligations. 

What is the Fees to Convert Partnership Firm to LLP?

Are you looking for Convert Partnership Firm To LLP Fees then here the details for you. The Convert Partnership Firm To LLP cost start from ₹15000 to ₹50000 along with Government Fee ₹ Nil and Professional Fee ₹ Nil.

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