Evolve. Beyond Regular Partnership.
Transfer from partnership to LLP
Partnership firms face a few disadvantages as compared to the Limited Liability Partnership (LLP) since they don’t have limited liability protection for the partners, a separate legal entity, the ability to have unlimited partners or the ease of transfer in ownership. The introduction of the Limited Liability Partnership Act, 2008 has made LLPs the best option for small and medium businesses to enjoy the perks of a company.
If you are a part of a Partnership Firm that wants to now convert into an LLP, you can employ our services that will help you seamlessly transition from the old into the new, including all necessary paperwork, compliance and planning.
One of the major prerequisites for such conversion is that the LLP yet to be incorporated has the same Partners as the original firm at the time of registration. If you want to introduce new partners or remove old ones, you either need to do so by either modifying the partnership agreement, waiting till the LLP is incorporated to add new members or dissolving the firm to create a new LLP to remove old members.
Procedure
A Digital Signature Certificate (DSC) and the Designated Partner Identification Number (DPIN) or Director Identification Number (DIN) are to be applied for all Partners before the conversion starts.
Procedure
The application for transfer of Partnership into an LLP Form 17 is to be duly filled along with the documents mentioned above. Upon submission of the documents along with the form, the Registrar of LLPs will issue a Certificate of Registration for thee LLP after verifying all the paperwork.
Within 15 days of such conversion, the Registrar of Firms is to be informed using the necessary forms about such a conversion into an LLP, so that the PArtnership Firm’s name can be struck off from the Register of Firms.
The application for transfer of Partnership into an LLP Form 17 is to be duly filled along with the documents mentioned above. Upon submission of the documents along with the form, the Registrar of LLPs will issue a Certificate of Registration for thee LLP after verifying all the paperwork.
Within 15 days of such conversion, the Registrar of Firms is to be informed using the necessary forms about such a conversion into an LLP, so that the PArtnership Firm’s name can be struck off from the Register of Firms.
Transfer of Assets
Licenses, permits, approvals, or registrations in the name of the Partnership Firm are not automatically transferred to the LLP. If there were any properties in the name of the Partnership Firm prior to the conversion, the LLP needs to move the concerned authorities to transfer such assets to the LLP.
Licenses, permits, approvals, or registrations in the name of the Partnership Firm are not automatically transferred to the LLP. If there were any properties in the name of the Partnership Firm prior to the conversion, the LLP needs to move the concerned authorities to transfer such assets to the LLP.
Effect post transfer
Note: The LLP is required to include a statement that it has transferred from a Partnership into an LLP in all of their official correspondence for 12 months from the date of the transfer.
