LLP is a separate legal entity and can hold assets in its name, while the status of Partnership Firm is dependent on its partners.
- Partners of partnership firms will remain a partner in a new form of the company as well. If someone does not want to continue they may retire.
- New partners may be added after registration of the converted company
- All the creditors must have given their consent for the conversion of the company
- All directors must file income tax returns, make contributions, apply for Digital Signature, Director Identification Number and DPIN.
- No minimum capital requirement
- Easier to increase funds
- Tax benefits (comparatively)
- Individually not liable for any loss occurred in LLP
- Some features like limited liability protection, easy to transfer, unlimited partners, more chances to survive
Step 1: Apply for approval of the name of the company in the prescribed format.
Step 2: Apply the conversion of partnership to LLP.
Step 3: File LLP Form 17 to the registered office of the company and also take consent of every partner to remain as a partner in LLP also.
Step 4: File LLP agreement within time only to the Registrar of the company.
Step 5: If the registrar of the company gets satisfied he will issue a Registration certificate.
Step 6: Submit all the necessary documents required for registration, and this process may take 15 to 20 days and depends on the approval speed.