Conversion Of Private Limited To LLP

Before knowing more about conversion process the basic knowledge about LLP is essential an outlook of LLP is provided below:

AN OUTLOOK OF LLP:

LLP Company acts as a unique form of legally recognized corporate entity that combines the features of traditional partnership firm and limited companies, so that LLP is more likely suitable for small and medium scale enterprises.

Along with the Limited liability Company and public limited companies LLP is also preferred. In India the common Limited Liability Company (LLC) is known as LLP (Limited Liability Partnerships). This method of company formation does not have any methodology in infrastructure but most of the foreign countries use a hybrid format.

LLP is controlled and managed by the LLP Act-2008 of April 1^st gave an introduction for promoting the ideas of MSME (Micro Small Medium Enterprise) with more benefit and less compliance. This Act constitutes about 81 sections and 4 schedules. But so far LLP 2009 is being preferred to file forms in MCA.

As already said LLP is a new pattern of comprising benefits of company and partnership as follows:

• Benefit of Limited liability to partner and Flexibility of Partnership.

• LLP is granted with a legal status same as that of company.
• Unlike the partnership in LLP the partner’s liability is limited to their contribution

LLP codes the inheritance concepts by the combination of the practices in private companies for the protection of freedom to the partners to manage the firm. For the startup to form LLP will take little time were the people was not that much interested to start such company in early days but for the current situation corporate structure cost seems to be less and has greater advantages on the partnership company registration and limited liability company.

LLP helps more for the enterprises in the range of small and medium level concentrating service sectors and professional companies on international level.

Conversion of Private limited to LLP:

1. Get DIN:

Procedures to obtain DIN is carried out here and also the earlier method was obtaining DPIN and it was abolished so that process of getting DIN is the initial step. The business people who have already occupied DIN do not need to apply again.

2. Board meeting

   Board of directors are arranged for meeting
   Conversion of Company into LLP- Pass resolution
   To authorize any director to Apply for Name of LLP-Pass resolution

Checks for the application name availability

An E-Form is filed with ROC enclosing attachments like Board resolution which is passed by the company to approve the conversion to LLP

3. Also get the name Approval Certificate from ROC.

4. Drafting of LLP agreement

Information in the agreement are as follows

• Name of LLP
• Name of Partners & Designated Partners
• Form of contribution
• Ratio of Profit Sharing
• Rights & Duties of Partners
• Proposed Business
• Rules for governing the LLP

LLP agreement is not mandatory for the time of incorporation and it is just the e-form annunal filing should takes place within 30 days of incorporation

It is not necessary to have the LLP Agreement signed at the time of incorporation, as the details of the same needs to field in e-form 3 within 30 days of incorporation but in order to avoid any dispute between the partners as to the terms & conditions of the agreement after the conversion into LLP.

5. Incorporation documents are filed

    E-form 2 is filed with required documents as follows and ROC

• LLP registered office Proof
• Promoters subscription sheet
• Details of notice of Consent & Appointment of Designated Partners
• Detail of LLP’s or companies in which partner

6. Application is filing process for the conversion

Here e-for 18 with ROC is used along with the following necessary documents

• Statement of shareholders/partners
• Incorporation Documents and Subscribers Statements in Form 2 filed
• Company’s assets and liability statements which is certified as true and corrected by auditor
• All the Secured creditors list with their consent to the conversion.
• If is a professional private limited company an approval of the governing council
• Income Tax authorities- NOC and Copy of acknowledgement- latest income tax return.
• Approval from any other body
• Particulars of pending proceedings from any court

7. Certification of registration is issued from registrar of LLP

Above process has completed and got an approval by the ministry, registration of LLP to issue the certification based on the form no 19.

8. E-form 3 is filed

It is filed with an agreement of LLP signed between partners

9. Incorporation certificate as LLP form ROC

10. E- form 14 is filed as an intimation to ROC

LLP is filed within 15 days of the date of registration after obtaining the incorporation certificate which is informed to the Companies registrar under the provisions of Companies Act 2013.

Attachments of E-FORM 14

• Certificate of Incorporation of LLP formed-copy
• Incorporation document submitted in Form 2-copy

Corp roots are able to provide this conversion registration process as per your requirements and time to get perfect fell of service satisfaction you can approach us at any time.