No, an LLP cannot be converted into a Sole Proprietorship firm. Limited Liability Partnership Rules, 2009 does not contain any provisions for the conversion of an LLP into a Sole Proprietorship
In Limited Liability Partnership, there is a statutory requirement of having a minimum of two partners with no upper limit. Hence an LLP can have multiple owners. Whereas, there can be only one single owner called the proprietor under Sole Partnership.
Limited Liability Partnership registration is governed under the jurisdiction of Central Government. Whereas, Sole Proprietorship registration is governed by State Government jurisdiction.
An LLP is usually opted by such entrepreneurs, who prefer to carry out their business in a conventional style, by having partners in their business. In an LLP, partners have a privilege of a limited liability, to the extent of their capital contribution in the business. To get a detailed insight to register an LLP over Sole Proprietorship, visit Advantages of LLP and Never Register a Sole Proprietorship
Sole Proprietorship is the simplest form of business. It is characterised with minimal government regulation, compliances and no annual audit requirement. The proprietor needs to file a simple Tax return along with their own Income tax return. However, the liability of the owner is unlimited. To get a reason to register a Sole Proprietorship over an LLP then Visit Sole Proprietorship India