LLP to Public Company

An LLP cannot be converted into a Public Limited Company.Though Chapter X and Chapter XVII of Limited Liability Partnership Rules, 2009 enumerates the procedure of conversion of a Public Limited Company to an LLP.

Can an LLP be converted into Public Limited Company?

No, an LLP cannot be converted into a Public Limited company. Limited Liability Partnership Rules, 2009 does not contain any provisions for the conversion of a Public Limited Company into a One Person Company.

  • Borrow Funds from Outsiders

An LLP cannot mobilise funds for further growth by borrowing money from outsiders. They can infuse more capital from their partners only, unlike a Public Limited Company.

  • No Dilution of Ownership Rights

An LLP cannot dilute the ownership of its partners by the issue of further securities like in a Public Limited Company. They can dilute the ownership rights by the admission of partners.


Why should I choose Limited Liability Partnership(LLP) over Public Limited Company?

An LLP is a conventional business model. It is a hybrid blend of the benefits of a company and a partnership firm, in which

  • Partners divide profit in a profit sharing ratio.
  • They have limited liability to the extent of Capital contribution.
  • They have negligible statutory compliances. 

To get a detailed insight to register an LLP over a Public Limited Company, visit Advantages of LLP.


Why should I choose Public Limited Company over Limited Liability Partnership(LLP)?

Public Limited is an advanced model of doing business. It is suitable for those businesses who,

  • have a growth prospect with huge investments
  • raise funds directly from the public

To get a detailed insight to register a Public Limited company oven an LLP, visit Advantages of Public Company.


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