Conversion of Partnership to LLP
Existing partnership firm can be converted into LLP by complying with the Provisions of clause 58 and Schedule II of the LLP Act, 2008. LLP is better business entity as compare to partnership firm. Partnership firm has unlimited liability and LLP is a body corporate with distinct legal entity, perpetual succession and Limited LIABILITY. Most important features of the LLP are unlimited partners, Limited Liability.
Advantages of LLP
- Unlimited Partners – there is no upper limit on the maximum number of partners of an LLP.
- Separate Legal Entity: A LLP is legal person in the eyes of law distinct from its members, LLP is a separate person having its own rights and obligation.
- Perpetual Succession: Death insolvency or insanity of any partners does not affect the continuity of the LLP it does not depend upon the life of its members.
- No Audit Requirement: LLPs with a capital of less than 25 lakhs and turnover less than 40 lakhs per year, do not require any formal audits.
Procedure for Conversion of Partnership to LLP
- Obtain Digital Signature Certificate (DSC)
- Apply for Name Approval
- Filing the Web FILLIP
- FILING THE Web From 3
- FILING THE Web From 17
- Certificate incorporation