LLP is a worldwide recognised business entity registered with the ministry of corporate affairs and governed by the Limited Liability Partnership Act, 2008 which limits the liability of partners and provides flexibility of a partnership. It helps small to medium size businesses which do not want government interaction and less compliance work. It is seen as an alternate response to traditional partnership and also called the ‘Hybrid’ of a partnership enterprise and a company.
Step - 1: Obtaining DIN
Designated partners must file for a DIN. Minimum no of partners need to be incorporated are two, between them one must be an Indian.
Before applying for DIN, one must file for DSC.
Step - 2: Call for a board meeting
A board meeting is called for. In the meeting, a resolution is passed for the consent for the conversion of the company to LLP and to authorise any director for approving the name of the LLP.
Step - 3: Name approval certificate from ROC
File e-form LLP 1 for registering the name of the company. Along with the board resolution passed by the company approving the conversion and following information:
Step - 4: LLP agreement
A written agreement between the partners of the Limited Liability Partnership or between the LLP and its partners which establish mutual rights and duties of the partners towards LLP is called LIMITED LIABILITY PARTNERSHIP AGREEMENT which needs to be drafted with the content as follows:
Step - 5: Filing of incorporation documents
This e-form 2 has basic information about the LLP like LLP’s office location, a capital contribution of the designated partners and number and name of LLPs the director and needs to be filed with ROC. The following attachments which need to be attached along are:
Step - 6: Application for conversion
Form-18 is the sole form for the conversion of the company into an LLP. It needs to be filed with form 2 and ROC along with the following attachments:
Step - 7: Certificate of registration
After all formalities and filings been composed and approved by the Ministry, registrar of LLP to issue a Certificate of Registration in form no. 19 as to the conversion of the LLP. The Certificate of Registration issued shall act as evidence of conversion of the LLP.
Step - 8: Filing E-FORM 3
This form provides information regarding the LLP Agreement entered mutually by the partners attached with LLP agreement
Step - 9: Certificate of incorporation
A Certificate of Incorporation to be issued by the ROC.
Step - 10: Filing of LLP-14
LLP-14 must be filed within 15 days after receiving the Certificate of Incorporation to the registrar to personally inform them about the conversion with following attachments: