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Convert Private Limited Company to LLP
Simplify Your Business Structure by Moving Away from Complex Compliance Requirements
₹ 13000 only
Transition a Private Company to LLP
The LLP structure combines the advantages of both partnerships and companies, offering enhanced operational flexibility when transitioning from a company to an LLP. It maintains the characteristics of a separate legal entity and limited liability. Unlike a Private Company, where management is handled by directors, the operations and management in an LLP are directly managed by the partners.
Governed by the LLP Agreement established by the partners, LLPs have fewer compliance obligations, making them easier to operate. This structure retains the benefits of a partnership while also providing the security and credibility of a company. To convert a Private Limited Company to an LLP, approval from the Ministry is required through an online application that includes the necessary documentation.
Benefits of Transitioning Private Limited Company to LLP
Rewards and returns to partners
Rewards and returns to partners
Reduced Statutory Compliance
The compliance requirements for an LLP are less burdensome compared to those for a Private Limited Company. An LLP is not obligated to maintain statutory records and registers, and the need for a statutory audit is also relaxed for LLPs.
Independent Liability
No partner is held accountable for the unauthorized actions of other partners. This means that individual partners are protected from the liabilities resulting from another partner’s wrongful business decisions or misconduct.
Transferability of Shares
The partners are actively involved in the daily operations and management of the LLP. Unlike a company, an LLP is governed by the LLP Agreement, which is mutually established by the partners.
Complete Registration Form
Provide us required Documents
Make an Online Payment
Our expert team will manage the Conversion of Private Limited Company to LLP
Certificate of incorporation will be mailed after completion of registration
How to Convert Private Limited Company to LLP with Corporate Shastra
Documents Needed to Convert Private Limited Company to LLP
NOC: Obtain consent from all directors and shareholders for the conversion in the specified format.
Clearance from tax authorities: A No Objection Certificate (NOC) from tax authorities is necessary.
Creditors approval: Provide a list of all secured creditors along with their consent.
Financial Statements: TSubmit the financial statements for the previous year along with the filed Income Tax Returns (ITR).
Digital signature: Digital Signature Certificates (DSC) of all current directors are required.
Pvt.Ltd. company documents: Include PAN card, certificate of incorporation, GST registration, and any other relevant documents or registrations.
Explore Conversion of Private Company to LLP
What are the basic conditions for converting Private Limited Company to LLP?
Following are the conditions for conversion:
All the members of the Company shall become the partners of the LLP on conversion.
No security interest in the assets of the company should be subsisting or in force on the date of conversion i.e. the assets are free of any encumbrance.
Up-to-date Income-tax return has been filed under the Income-tax Act, 1961.
Any clearance, approval or permission for conversion of the company into Limited Liability Partnership, if required from anybody/ authority, etc. has been obtained.
Do we need to execute any instrument for transferring the assets & liabilities on conversion of company into LLP?
What are the requirements and consequence provided in the Act in respect to the licences, permits, approvals etc. obtained by the company prior to its conversion into LLP?
Comparison of Business Structures
Proprietorship | Partnership | OPC | LLP | Private Limited | |
|---|---|---|---|---|---|
Ownership | Sole Ownership | Min 2 partners Max 50 partners | Only 1 member | Min 2 Designated Partners | Min 2 Directors Min 2 Shareholders Max 15 Directors Max 200 Shareholders |
Separate
Legal Entity | No | No | Yes | Yes | Yes |
Applicable Law | No specified Act | Partnership Act, 1932 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Companies Act, 2013 |
Statutory Audit | Not Mandatory | Not Mandatory | Mandatory | Based On Applicability | Mandatory |
Liability | Unlimited | Unlimited | Limited | Limited | Limited |
Perpetual Existence | No | No | Yes | Yes | Yes |
Ownership Transferability | No | Yes (Restricted) | Yes (Restricted) | Yes | Yes |
Taxability | Low | High | Moderate | High | Moderate |
Compliance
Requirement | Low | Low | High | Moderate | High |