Conversion of Private Limited Company into a LLP
LLP is a hybrid combination of Private Limited Company and Partnership Firm. It contains the best practices of both of them. It contains the benefit of limited liability to partners (partner's liability is limited to the contribution made by them in the LLP) and flexibility of Partnership firm. It has a separate legal identity similar to a Company.
Forming and maintaining a LLP is much cheaper and LLP needs to do less compliances as compared to Private Limited Company.
Therefore, many small and medium companies, who are not able to afford the compliances of Private Limited Companies are converting it in a LLP.
So, we break down the process of conversion into different steps:-
Step-1: Obtain DIN for proposed designated partners, if they donot have the same.
Step-2: Call a Board meeting and pass a resolution for conversion of Private Limited Company into a LLP.
Step-3: Application for reservation of LLP name in Form-1
Step-4: Filing of Incorporation documents in LLP Form-2
Step-5: Filing of Application for conversion in LLP Form-18
After this step if all the documents are approved by the registrar, it would issue a certificate of registration in Form No. 19 as to conversion of the LLP. This registration certificate would be the proof of conversion.
Step-6: Submitting of LLP agreement in LLP Form-3
Step-7: Intimate the conversion to the old ROC in which the company was registered in LLP Form-14
Feel free to call our expert team in case you need to convert your company to a LLP. Our team will be privileged to help you.
We can be contacted at +91 9330560978, 033-40015813, info@fundscoop.in
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