Transfer from Partnership to LLP

Evolve. Beyond Regular Partnership.

Enquire Now

Transfer from partnership to LLP

Partnership firms face a few disadvantages as compared to the Limited Liability Partnership (LLP) since they don’t have limited liability protection for the partners, a separate legal entity, the ability to have unlimited partners or the ease of transfer in ownership. The introduction of the Limited Liability Partnership Act, 2008 has made LLPs the best option for small and medium businesses to enjoy the perks of a company.

If you are a part of a Partnership Firm that wants to now convert into an LLP, you can employ our services that will help you seamlessly transition from the old into the new, including all necessary paperwork, compliance and planning.

One of the major prerequisites for such conversion is that the LLP yet to be incorporated has the same Partners as the original firm at the time of registration. If you want to introduce new partners or remove old ones, you either need to do so by either modifying the partnership agreement, waiting till the LLP is incorporated to add new members or dissolving the firm to create a new LLP to remove old members.

Procedure

A Digital Signature Certificate (DSC) and the Designated Partner Identification Number (DPIN) or Director Identification Number (DIN) are to be applied for all Partners before the conversion starts.

Consent of Partners in writing

Incorporation Documentation for an LLP

No Objection Certificate from the Tax authorities

Financial statements of the Firm

List of all the creditors and their consent

Any other documents as requested

The application for transfer of Partnership into an LLP Form 17 is to be duly filled along with the documents mentioned above. Upon submission of the documents along with the form, the Registrar of LLPs will issue a Certificate of Registration for thee LLP after verifying all the paperwork.
Within 15 days of such conversion, the Registrar of Firms is to be informed using the necessary forms about such a conversion into an LLP, so that the PArtnership Firm’s name can be struck off from the Register of Firms.

Licenses, permits, approvals, or registrations in the name of the Partnership Firm are not automatically transferred to the LLP. If there were any properties in the name of the Partnership Firm prior to the conversion, the LLP needs to move the concerned authorities to transfer such assets to the LLP.

Effect post transfer

1. Partnership firm is understood to be dissolved
2. The name of the firm is struck off from the Register of Firms
3. The assets, liabilities, privileges, rights, and obligations of the Partnership firm is fully handed over to the LLP
4. The conversion does not affect any of the existing contracts, employment of staff, agreements, or other ongoing transactions
5. The Partners have a limited liability protection
6. The Partners continue to be personally liable for every business undertaken as a Partnership before the transfer into an LLP

Note: The LLP is required to include a statement that it has transferred from a Partnership into an LLP in all of their official correspondence for 12 months from the date of the transfer.

Popular Options

Special Business Entities

Trademark

Patent

Copyright

Select Conversion Type

Update Corporate Information

Close a Business

Government Registration

Tax Filing

Corporate Compliances

Accounting