Convertion of Pvt. Ltd. Co. to LLP

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Overview

Converting a Private Limited Company to a Limited Liability Partnership (LLP) primarily offers the advantages of enhanced management flexibility, a reduced compliance burden, and potential tax efficiencies.

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Steps

01

Obtain Shareholder Approval

02

File LLP Agreement

03

File Incorporation Documents

04

Obtain Approval from ROC

05

Transfer of Assets and Liabilities

06

Obtain PAN and TAN from the Income Tax Department.

Eligibility

Shareholder

Approval: The shareholders of the Private Limited Company must approve the conversion through a resolution passed in a general meeting.

Minimum Number of Partners:

The LLP must have at least two partners.

Compliance with Legal Requirements:

The Private Limited Company must be in compliance with all the applicable laws and regulations, including those related to taxes and labor laws

Paid-up Capital:

The LLP must have a minimum paid-up capital as specified by the jurisdiction where it is incorporated.

Certificate of Registration

  • "The Certificate of Registration, issued by the Registrar of Companies (ROC), serves as the official confirmation of a Private Limited Company's successful conversion into a Limited Liability Partnership (LLP).

    This crucial document establishes the LLP's legal existence and is indispensable for commencing various operations, including opening bank accounts and securing loans.

    To acquire this certificate, the LLP must submit all requisite incorporation documents to the ROC, which, upon review and approval, will then issue the Certificate of Registration."