Today, a lot of small firms choose a partnership firm’s LLP option. It is because LLPs offer several advantages over traditional partnership firms, including flexibility, perpetual succession, and restricted liability for partners.
Better management of a business is facilitated by the option to convert a partnership firm into an LLP. Additionally, it offers the advantage of an infinite number of partners in a firm. Today, in contrast to the past, LLP registration is simple. A partnership firm can become an LLP extremely easily and quickly. This blog post will go over the entire conversion process from a regular partnership firm to an LLP firm.
Acts That Control the Conversion of a Partnership Firm into an Llp
The following principal laws govern the process of transforming a partnership firm into an LLP:
Schedule 2 of the LLP Act of 2008
A Partnership Firm’s Transformation Into an LLP Firm
Online LLP Annual Filing is now quick and easy to complete on the official website. Simple procedures to change a partnership firm into an LLP firm include:
Adding LLP to the Name of a Firm
The terms Limited Liability Partnership or LLP must be added to the firm’s name in order for Can a Partnership Be Converted into LLP. The name’s approval is good for 90 days after receiving it.
filing a form for incorporation
Once the name of the company has been approved, eForm FILLIP must be submitted. The following is a list of the documents needed to register an LLP:
- Utility invoices for your registered address that are no more than two months old
- Consent of all the firm’s partners
- Identity and address verification for subscribers
- sheet of signed NOCs for the current partnership business
- Details of the business, including whether a partner is a director or a partner
When applying to convert a partnership firm, you must complete eForm 17 and provide the supporting documentation listed below:
- Conversion of a partnership firm into an LLP firm with the approval of all creditors.
- approval from the necessary authorities and neighbourhood organisations.
- CA-certified assets and liabilities statement
- Existing partnership firm’s partnership deed
- The Registrar of Firms issues a certificate of partnership firm registration.
- Partnership Statement in accordance with Schedule II
- copy of the LLP Annual Filing returns’ acknowledgment
Rejection of a resubmission by the registrar with approval
A Certificate of Incorporation will be given by the Registrar following approval. You have the right to appeal to the Tribunal if the Registrar rejects your approval. He will take your case into account and work to hasten approval.
Registrar of the Firm notified
The LLP firm must notify the registrar of firms within 15 days of the conversion date. It must also submit additional paperwork, including:
A copy of the LLP’s certificate of incorporation
- a copy of the incorporation papers
Form 14 must be manually filed with the Firm Registrar after being signed.
This completes the registration process for LLP firms. Within 30 days of the conversion date, you must submit eForm LLP 3 to the Registrar. Along with LLP-3, you must also submit the LLP Agreement.
The Partnership firm will be dissolved following the incorporation of the LLP. The LLP receives all the properties, rights, obligations, privileges, and assets. The entire company is moved to an LLP firm.