Convert Proprietorship To Limited Liability Partnership
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Overview
“The main reasons to convert a proprietorship to a Limited Liability Partnership (LLP) are:
Limited liability protection for partners Separation of ownership and management Easier to raise capital Improved credibility and reputation Tax benefits Easier transfer of ownership Formal and established business structure.”
"Select a name for the LLP that complies with the LLP Act and the Companies Act. "
02
Prepare LLP agreement
03
Register the LLP
04
Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC)
05
File the incorporation form (e-Form 2)
06
"Obtain name approval for the proposed LLP from the ROC. "
07
File LLP agreement (e-Form 3)
08
Obtain certificate of registration
Eligibility
Registration
The proprietorship must be a registered business and have a PAN number.
Operation
The proprietorship must have been in operation for at least one financial year. “
Partners
The proposed LLP must have at least two partners.
Requirements
The proposed LLP must comply with the requirements of the Limited Liability Partnership Act, 2008.
Agreement
All partners must agree to the conversion.
Certificate of Registration
"Upon the successful conversion of a proprietorship to a Limited Liability Partnership (LLP), the Registrar of Companies (ROC) issues a Certificate of Registration.
This pivotal document serves as irrefutable proof of the LLP's legal existence and its legitimacy as a distinct legal entity. Its issuance signifies the completion of the conversion process, along with the approval of all submitted documentation and forms.
The Certificate of Registration is indispensable for various essential business activities, including but not limited to opening bank accounts, securing necessary licenses, and commencing full-scale operations."