How to convert Partnership firm into LLP

Conversion of Partnership Firm into Limited Liability Partnership

In the era of Make in India, it is important to register your business first before kick start your business. There are many entrepreneurs who were unaware of the business structures to opt for in India, so they started with either a Proprietorship firm or partnership firm. Broadly, there are three business structures in India; One; Private Limited Company including One Person Company, Second; Public Limited Company and Third; Limited Liability Partnership (LLP).

LLP as the name suggests, it is limited liability Company while under Partnership, there is unlimited liability. It is advisable to start a LLP instead of Partnership for better business structure.

Now, many entrepreneurs who are already sailing in the boat of Partnership firm, good news for them that they can get their firm converted into LLP easily by following the below-mentioned procedure.

Step Number	Particulars	Form to be filed	Documents Required
1.	Obtain Digital Signature of any one Designated Partner	DSC application to be filed with Sify/ eMudhra	-         PAN Card -         Address Proof -         Photo to be affixed on the DSC Application Please note that the documents are required to be attested by banker or Gazetted Officer
2.	Obtain DIN (Director Identification Number)	eForm DIR 3	-         Self attested Pan Card -         Self attested Address Proof -         Recent Passport Size Photograph Information required is, Mobile Number, Email id and Educational Qualification
3.	File Name Application for LLP with the Registrar of Companies If the name of Partnership firm is already registered with the Registrar of Firms, then, you can attach a Proof to the form, and if you have registered Trademark against the applied name, then, also attach TM Acknowledgement	eForm 1LLP	- Copy of Trade Mark Registration/ acknowledgement of application for Trade Mark Registration/ authorization to use Trade Mark -Proof of No Objection from the existing Partners
4.	Application for Conversion After the name gets approved, conversion application can be filed with the Registrar of Companies	eForm 2 & eForm 17	-         Statement of consent of partners of the firm -         Statement of Assets and Liabilities of the firm duly certified as true and correct by Chartered Accountant in Practice -         Copy of Acknowledgement of latest Income Tax Return filed -         List of all Secured Creditors along with their consent for conversion -         Registered Office Proof -         Subscribers Sheet -         Details of LLP/ Comp[any in which Partner/ DP is Director/ Partner
5.	Filing LLP Agreement After issue of Certificate upon conversion of Firm into LLP, the LLP is required to file LLP Agreement covering the Roles & Responsibilities of Designated Partners/ Partners	eForm 3	-         LLP Agreement duly stamped signed and notarised by Public Notary LLP Agreement  required to be filed within 30 days of receiving Certificate of Incorporation
6.	Information to Registrar of Firms about conversion	Form 14	-         On issue of certificate of registration the new LLP thus formed shall within 15 days from the date of registration inform the concerned Registrar of Firms by filing Form 14 to be in physical form and submitted to Registrar of Firms

·        The limited liability partnership shall ensure that for a period of twelve months commencing not later than fourteen days after the date of registration, every official correspondence of the limited liability partnership bears the following :

§  a statement that it was, as from the date of registra­tion, converted from a firm into a limited liability partnership; and

§  the name and registration number, if applicable, of the firm from which it was converted.

For more updates, please contact CS Neha Seth at csnehaseth@gmail.com or call us at 9871903449