LLP is a separate legal entity and can hold assets in its name, while the status of Partnership Firm is dependent on its partners.

Requirements 

• 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.

Benefits

• 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 

Conversion process

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.