Ask 4 Compliance | Conversion of Partnership firm to LLP
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CONVERSION OF PARTNERSHIP FIRM TO LLP

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CONVERSION OF PARTNERSHIP FIRM TO LLP

A firm may convert into a Limited Liability Partnership in accordance with the provisions of Section- 55 of LLP Act, 2008 read with Second Schedule. Partnership firms are at a disadvantage when compared to the newly introduced Limited Liability Partnership (LLP) as they do not provide limited liability protection for the partners, separate legal entity status, ability to take on unlimited number of partners and ease of ownership transfer. The introduction of LLP’s through the Limited Liability Partnership Act, 2008 has made LLPs the premier choice for small and medium sized businesses.

Our team of highly qualified professionals at Ask4compliance.com can help you in Conversion of Partnership Firm to LLP by completing the necessary procedures as per Companies Act, 2013.

 

Conditions for Conversion:

  • The firm should be registered as Partnership.
  • There should be consent of all the Partners.
  • All the Partners become partner in the LLP, in the same proportion in which their capital accounts stood in the books of the Firm on the date of the conversion.
  • Every partner should contribute to the LLP.
  • DPIN (Knows as DIN) should be acquired for all the designated Partners.
  • DSC (Digital Signature Certificate) should be acquired for two designated Partners.

Process & Timeline

20-30 days

Professional Fees

Rs. 35500

(GST, Government Fees and other Out of Pocket Expenses Extra)

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KEY REQUIREMENTS

  • Upto date filing of Income tax returns
  • Consent of all the unsecured creditors for the proposed conversion
  • Minimum 2 Designated Partners
  • At least 1 of the designated partners shall be an Indian Resident.
  • The Partners and Designated Partners can be same person
  • There is no concept of share capital, but there has to be some sort of contribution from each partner

DOCUMENTS REQUIRED

  • Statement of partners of the firm (may be attached in a tabular form)
  • Statement of Assets and Liabilities of the firm duly certified as true and correct by the Chartered Accountant in practice.
  • List of all the creditors along with their consent to the conversion (may be given in the form of a tabular statement).
  • Approval of the governing council (In case of professional firms)
  • NOC from Income Tax Authorities.
  • Approval from any other body/authority as may be required.
  • Particulars of pending proceedings from any court/Tribunal etc.
  • Rejection letter of Registrar of any earlier application for conversion.
  • Particulars of convictions, rulings, orders, judgement of Courts in favour or against the firm which are subsisting.

Free Consultation

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