Conversion of Partnership To LLP Company service is offered by First Auditor in Chennai, Tamil Nadu. We are Chennai, Tamil Nadu's top conversion of partnership to limited liability partnership consultants. In Coimbatore, Madurai, Tirupur, Trichy, Thanjavur, Erode, Salem, Namakkal, Karur, Hosur, Tuticorin, Krishnagiri, Cuddalore, Kanyakumari, and Pondicherry, among other places, we offer Conversion of Partnership To LLP. We charge reasonable costs for partnership conversion to LLP. We provide the service at a lower cost and more efficiently than our rivals.
Overview: From Partnership to LLP
An LLP can show to be a considerably more effective company structure than a standard partnership. Personal liabilities have an impact on partnerships, and LLPs eliminate the burdensome rules of the Indian Partnership Act, 1932. There are also tax advantages, no audit obligations below a particular capital threshold, a cap on the number of partners, and no capital contribution requirements.
A Limited Liability Partnership's advantages
Different Legal Entity
In terms of the law, an LLP is distinct from its partners. If an issue emerges, either spouse may file a lawsuit against the other. It has an unbroken existence and everlasting succession, so even if the partners part ways, the company will continue. The firm must jointly agree on a term of dissolution before it can be dissolved.
Flexible Agreement
It is easy to transfer ownership of LLP. The ownership can be swiftly transferred to someone after they are accepted as a designated partner.
Good for Small Businesses
Formal audits are not necessary for LLPs with capital under Rs. 25 lakhs and annual revenue under Rs. 40 lakhs. For new companies and small firms, it makes registering as an LLP advantageous. Due to its legal status, an LLP is able to possess or purchase property. An LLP's partners are not allowed to claim the assets as their own.
A lack of Owner/Manager Distinction
Partners in an LLP are those who own and run the company. It differs from a private limited corporation in which the shareholders and directors may not be the same. Because of this, venture investors avoid investing in the LLP structure.
Document Required for Partnership to LLP
There is not much paperwork involved in the LLP registration process in India.
Partner Submissions Are Required
- A scanned copy of your passport or PAN card (Foreign Nationals & NRIs)
- Aadhar Card, Voter ID, Passport, or Driver's License Scanned Copies
- Scanned copies of the most recent telephone, mobile, or utility bills
- Passport-size photo that has been scanned A sample signature (blank document with signature [partners only])
- The first three documents must all be self-attested by one of the partners. All documents for NRIs and foreign nationals must be apostilled or notarized (if they are currently in India or another country that is not a member of the Commonwealth) (if in a Commonwealth country).
Regarding Registered Office
- A scanned copy of the most recent telephone, mobile, or electric or gas bill, or bank statement
- English-language scan of the notarized leasing agreement
- Scanned copy of the property owner's certificate of no objection
- English-language scan of a sale or property deed (in case of owned property)
FAQ
What are the Minimum Requirements for the Conversion of Partnership into LLP?
The number of partners in a partnership firm must match the number in the original partnership.
Is it compulsory for a Partnership Firm to have the same number of members at the time of Conversion?
Yes, it is required that a partnership firm at the time of conversion have the same number of partners.
How to Reserve a name for the LLP?
By submitting an online form, the partners of a company can reserve an LLP name. In order to reserve someone, partners are only allowed to provide a maximum of six names in a preferential order. The application could also be resubmitted with an alternative name, at the Registrar's request. The same is true if the given name does not meet the criteria for originality, relevance, etc.
What is the Minimum Capital Requirement for LLP Registration?
No, there isn't a set minimum required to set up an LLP.
What will be the treatment for the capital contributed by the partners?
An LLP Agreement will reveal how much each authorised partner has contributed.
Is DPIN required for LLP Registration?
Regarding the incorporation of LLP, the idea of a Designated Partner Identification Number (DPIN) is no longer relevant.
What are the Prerequisites to be a partner for LLP Incorporation?
An LLP's partners must all be over the age of 18 and legally capable of entering into a contract. Additionally, DIN is required for all proposed Designated Partners.
What is a Limited Liability Partnership Agreement?
An LLP Agreement is a contract that all of the partners sign after an LLP is incorporated. This contract details all business-related provisions, including the function, obligations, and rights of the partners.
Is there a need to file an LLP Agreement with the MCA?
A Certificate of Incorporation must be issued within thirty days of the filing of an LLP agreement. Failure will result in an extra fee of Rs 100 per day till the filing date, nevertheless.
Can the same name be used for the Newly Incorporated LLP?
Maintaining the brand identity in the market is the fundamental goal of any conversion. To incorporate an LLP under the original name, a legitimate proof must be attached. A document that supports the company's assertion that it has used the brand name in commerce is considered a valid proof.