Partnership to LLP Conversion

Starts @ Rs. 7,500/-
 Rs. 5,000/-*

Experienced Team

Cost Effective

Customer Satisfaction

No Hidden Fees / Charges.

*All price is exclusive of taxes and Govt Fees (if any).

Fill the Enquiry Form to Start Your Registration Process Right Now

    Partnership tp LLP

    Ideal for Micro small and medium enterprises

    Limited Liability Partnerships (LLP) are emerging ever since the introduction of the Liability Partnership Act 2008, as it is a form of business entity, which allows individual partners to be free from the concept of joint liability of partners in a partnership firm. LLPs are preferred form of business as it is an alternative corporate business vehicle that provides the benefits of limited liability of a company but allows its members the flexibility of organizing their internal management on the basis of a mutually arrived agreement, as is the case in a partnership firm. But sometimes, it may happen that some of the Directors have incorporated a Company that needs to be converted into a LLP now. After introduction of LLP Act in 2008, many Partnership Firms have started to convert their Partnership Firm to LLP. The reasons of conversion are self-evident such as ability to take unlimited number of partners, separate legal entity, limited liability and ease of ownership transfer. Because of these advantages of LLP over Partnership, LLP has become very popular amongst small and medium sized businesses.

    Characteristic of conversion of Partnership firm to LLP Company

    The basic Characteristic of conversion of Partnership firm to LLP Company are:

    • The Partnership Firm which wants to convert itself to LLP must be registered under Indian Partnership Act, 1932. Unregistered Partnership Firm can’t be converted to LLP.
    • There is no security interest in its assets subsisting or in force at the time of application
    • The partners of the LLP to which it comprise all the shareholders of the Company and no one else.
    • No eForms should be pending for payment or processing in respect of the Company.
    • No open (unsatisfied) charges should be pending against the Company.
    • At least one balance sheet and annual return should have been filed by the Company after its incorporation.

    Conversion of partnership to LLP is done through Palankarta.

    Benefits of partnership to LLP company Conversion

    Following are the benefits of Conversion of partnership to LLP company-

    • Less compliance cost
    • Audit necessary only if turnover and contribution exceeds Rs. 40 lacs and Rs. 25 lacs respectively.
    • The partners can distribute the profits among themselves without attracting any further taxation i.e. Dividend Distribution Tax.
    • Various stringent provisions that prohibits the Company to take loans from individual or give loans to the respective Director are not there in case of LLP.
    • There are no restrictions on related party transactions in case of LLP.
    • Separate Legal entity
    • Profits can be distributed without any cost of Distribution Distribution Tax (DDT)
    • Audit not mandatory upto specific turnover.

    Services Offered by Us

    Following are the services provided by us at the time of registration.

    • DPIN for 2 Partners
    • DSC’s For 2 Partners
    • LLP name search & approval
    • LLP Agreement
    • ROC Registration
    • LLP Pan Card
    • LLP TAN
    • Annual Compliance Guidance.

    Procedure for Registration

    Fill Enquiry
    Form

    Associate will call
    and discuss in length.

    Make
    Payment

    Complete Documentation
    & Requirements

    Registration
    Complete

      Why Palankarta?

      Experienced Financial
      Professionals

      Deliver Service
      on Time

      Cost
      Effective

      Assured Customer
      Satisfaction

      No Hidden
      Fees / Charges.

      Frequently Asked Questions

      FAQ

      General Questions

      In case the Company is converted into LLP, will the provisions of MAT apply to the successor LLP?

      No, as per the amendment in Section 115JAA of the Income Tax Act, 1961 in Finance Act, 2010 but AMT might apply.

      What shall be taken as the cost of asset in case of conversion?

      The actual cost of the block of assets in the case of the LLP shall be the written down value of the block of assets as in the case of the said company on the date of conversion of the company into the LLP.

      Who shall pay tax in case of non-compliance of any of the conditions laid down in Section 47(xiiib) of the Income Tax Act, 1961, after conversion?

      The amount of profits or gains arising from the transfer of such capital asset or intangible assets or share or shares not charged under section 45 by virtue of conditions laid down in the said proviso shall be deemed to be the profits and gains chargeable to tax of the successor LLP or the shareholder of the predecessor company, as the case may be, for the previous year in which the requirements of the said proviso are not complied with.

      What shall happen to the accumulated loss or the accumulated depreciation, if any standing in the financials of the Partnership Firm?

      The accumulated loss and the un-absorbed depreciation of the predecessor Legal entity.  Legal entity, shall be deemed to be the loss or allowance for depreciation of the successor LLP for the purpose of the previous year in which business re-organisation was effected. Further, in case of non-compliance of any of the provisions as stated in the Section Section 47(xiiib) of the Income Tax Act, 1961, then such set off of loss or allowance of depreciation in the hands of the successor LLP, shall be deemed to be the income of the LLP chargeable to tax.