Legalmark-Logo
Call for Free Consultation +91-6003-707-562

Proprietorship to LLP

Limited liability association in India was presented through the LLP Act, 2008. The fundamental idea driving receiving LLP was to give a design that is not difficult to keep up and decreases the obligation when contrasted with a sole ownership structure. LLP joins the upsides of both the Company and Partnership firm into a solitary type of association and offers a half and half construction. Thus, the change of sole ownership into LLP is a decent business choice. Under LLP, one accomplice isn't dependable or obligated for another accomplice's wrongdoing or carelessness. LLP additionally gives restricted obligation security to the proprietors from the obligations of the LLP. Subsequently, LLP is favored for the most part by Professionals, Micro, and Small organizations that are family-claimed or intently held.

customer-satisfaction

300+

Happy Customers
customer-satisfaction

300+

Happy Customers
customer-satisfaction

300+

Happy Customers
customer-satisfaction

300+

Happy Customers

Rs 14999/-

All Charges Included

some of our
Recent Clients

    AH TECH SOLUTIONS PRIVATE LIMITED

all you need to know
Proprietorship to LLP

Separate Legal Existence

Limited liability partnership is a different lawful substance, and its reality is isolated from its accomplices, not at all like the overall organization firm. This makes it conceivable to claim resources and go into contracts for the sake of the LLP or sue an outsider if there should be an occurrence of any question.

Limited Liability of Owners

The responsibility of Partners is limited to the degree of capital commitment concurred by the accomplices in the LLP Agreement. The misfortune or obligation of LLP can't be relegated to accomplices even while the disintegration of LLP. Further, one accomplice isn't considered answerable for the activities of carelessness or wrongdoing of some other accomplice.

Flexibility to Operate

The LLP is overseen and run by the LLP understanding. The accomplices choose how the LLP would capacity and gap the obligations and duties. Subsequently, it is an entirely adaptable construction and the accomplices are allowed to make their own guidelines of the executives which is absurd in other business structures.

Lower Compliance Requirement

Contrasted with a Private Company, there is a lower consistency prerequisite in the event of LLP, including the review necessity. The prerequisite of legal review emerges on arriving at a specific degree of turnover or commitment. Further, arrangements like the gathering of accomplices, activity through goals are loose and not required for each situation.

document required
Proprietorship to LLP

1

PAN Card

PAN Card of all partners Foreign nationals may provide passport

2

Partner’s Address Proof

Aadhar Card/ Voter ID/ Passport/ Driving License of all partners

3

Photograph

Latest Passport size photograph of all partners

4

Rent Agreement

Rent Agreement of the registered office should be provided, if any

5

NOC from owner

No Objection Certificate to be obtained from the owner of registered office

6

NRI/ Foreign National (Note)

In the case of NRI or Foreign National, documents of the partner must be notarized or apostilled

7

Business Address Proof

Electricity Bill/ Telephone Bill of the registered office address

steps involved in
Proprietorship to LLP

Step 1 1-2 Days
  • Consultancy and help for transformation
  • The Collection of essential data and reports
Step 2 3-5 Days
  • Application for Digital Signature Certificate (DSC)
  • Application for DIN portion of Designated Partners
Step 3 6-7 Days
  • Checking Name accessibility
  • Application for Name Reservation
Step 4 8-12 Days
  • Drafting the incorporation record
  • Documenting structure for changing sole ownership over to LLP
  • Endorsement of Incorporation
Step 5 13-18 Days
  • Application for PAN and TAN of LLP
  • Drafting of LLP Agreement, with transformation statement
Step 6 19-21 Days
  • Installment of Stamp Duty
  • Recording of LLP Agreement with MCA
  • Government handling time

Frequently Asked Questions
Proprietorship to LLP

Is Foreign Direct Investment (FDI) permitted in LLP?

Indeed, Foreign Direct Investment (FDI) is permitted in LLP under the programmed course in areas permitted by the Foreign Investments Promotion Board (FIPB). Nonetheless, Foreign Institutional Investors (Flls) and Foreign Venture Capital Investors (FVCIs) won't be allowed to put resources into LLPs. LLPs will likewise not be allowed to benefit from External Commercial Borrowings (ECBs.)

Would i be able to proceed with the business trademark of Proprietorship as LLP?

While making an application for name reservation, the business trademark of the ownership can be applied to secure as the name of LLP. Service may give a similar name considering the way that ownership is changed over into an LLP, except where the name of the firm is as of now saved by some other organization/LLP. The endorsement of the name application is totally at the watchfulness of MCA.

what befalls the resources and liabilities of the sole ownership?

Every one of the resources and liabilities of the owner following the transformation becomes the resources and liabilities of the LLP. All portable and relentless properties of the owner consequently vests in the LLP. No Capital Gains charge will be charged on the move of property from Proprietorship firm to LLP. The gathered misfortune and unabsorbed devaluation of the Proprietorship firm are considered to be a misfortune/deterioration of the replacement LLP for the earlier year in which transformation was affected. Along these lines, such misfortune can be conveyed for additional eight years in the possession of the replacement LLP.

Regardless of whether LLP can be enlisted for Not-revenue driven exercises?

Benefit making is a fundamental condition for an LLP; subsequently, LLPs can't be fused for undertaking non-benefit exercises.

Do I need to apply for a new enrollment for the sake of LLP or correct the enlistments for the sake of Proprietorship Firm?

The cycle for the transformation of ownership into LLP will be recorded with the concerned office as enrollments for the sake of Proprietorship Firm can't be corrected. Every one of the enlistments is taken for the sake of Proprietorship, if not needed for some other reason, will be given up.

What are the key necessities/factors for enlisting a LLP?

Like all associations enlistment requires at least two people to be the assigned accomplices, one accomplice being an Indian public. The enlisted business environment must be in India.

Are there any impediments on being an accomplice when changing sole ownership over to LLP?

The LLP Act, 2008 doesn't place any impediments regarding citizenship or residency to be a Partner. Far off Nationals, including Foreign Companies and LLPs, are permitted to join LLP in India gave, at any rate, one of the Designated Partners is the inhabitant of India. In any case, the individual ought to be old enough 18 years or above for example not a minor and skilled to go into an agreement. Likewise, the proposed Designated Partner will have DIN.

must read articles
Proprietorship to LLP