Overview

The Limited Liability Partnership Act of 2008 does not cover the conversion of an LLP into a company, however Section 366 of the Companies Act of 2013 and the Company (Authorized to Register) Rules of 2014 allow an LLP to convert into a company under its provisions.

For greater development and expansion, as well as to pump equity capital, many Limited Liability Partnerships (LLPs) are increasingly changing to a Private Limited Company.

Conditions to convert an LLP into a Pvt ltd company.

A limited liability partnership (LLP) must have at least two partners, and all partners must agree.
Advertisement in a local newspaper and a national newspaper, in form URC-2, in the local language where the LLPs registered office is located.
The Registrar of Companies in the state where the LLP is registered must provide a No Objection Certificate (NOC).

Benefits
Checklist/Requirements
How to Register/Process
Key Deliverables

Benefits of Conversion of LLP to Pvt Ltd

The concept of shareholders does not exist in LLPs. As a result, every LLP's owner is a Partner in the LLP. This structure is not appropriate for Venture Capitalists and Private Equity Investors who do not want to be involved in the company's management.
Accepting Foreign Direct Investment (FDI) is quite easy in a company, as compared to LLP.
Private limited company offers an Employee Stock Option Plan (ESOP), from which a company can offer shares to its loyal employees at a fixed subscription price over a period of time, such plans do not exist in LLP.
Compliances for Private Limited Companies are high as compared to LLP, but that helps in recognizing it. Private Limited Company is the most recognized type of entity in India.

Checklist/Requirements

Names, addresses, and occupations of all partners
Copy of LLP Agreement
Identity proof and Address proof of partners
A copy of latest income tax return of the Limited Liability Partnership
No Objection Certificate from all the secured creditors
written consent from the majority of Partners
Copy of newspaper advertisement

Process of Conversion of LLP to Pvt Ltd

Step 1: Hold a meeting of the partners

Step 2: Publish newspaper notice in form URC-2

Step 3: Obtaining the approval of Name

Step 4: File the form No URC-1 & SPICe

Step 5: Issue Share Certificates to the members

Key Deliverables

Incorporation certificate
MOA and AOA
Share Certificates

Why Choose Us

Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.

Frequently Asked Questions

How much time does it take from start to finish to convert from a Limited Liability Partnership to a Private Limited Company?

30 days

What are the disadvantages of a Private Limited company over a LLP?

High set-up costs (legal and administrative)
High Compliance

Treatment of Stamp Duty issues?

Since Stamp Duty is the subject reserved for the States, the LLP Act does not contain any provision for treatment of stamp duty issues. The stamp duty payable will depend upon the relevant Stamp Act prescribed by the State Government/Union Territory.

Excise & Customs

Conversion of LLP to Pvt Ltd