In comparison to a standard partnership, a limited liability partnership (LLP) can be shown to be a far better business structure. Personal liabilities have an impact on partnerships, and LLPs do away with the Indian Partnership Act of 1932’s overbearing requirements. In addition, there are tax advantages, no audit obligations below a specific capital threshold, no partner cap, and no capital contribution restrictions. Read through to know more about conversion of firm into LLP.
Conditions For Conversion of Partnership Firm into LLP According to Section 55 of the Limited Liability Partnership Act of 2008 read with Schedule II of the Act, a partnership can partnership be converted into llp. There cannot be any new partners or for existing partners to stop being partners during the application process since all partners of the firm must be partners of the LLP.
Increasing authorized share capital provides your company with strategic financial flexibility, enhanced borrowing capacity, and the ability to attract investments. It allows for smoother adaptation to changing financial needs.
Yes, at least two partners must have DSCs, and all partners must possess a current Digital Signature Certificate (DSC) before submitting the conversion application.
Documents required include PAN cards or passports of partners, Aadhar card/Voter’s ID/Passport/Driver’s License, bank statements, rental agreements, and a no-objection certificate for the registered office.
