conversion of private_company_into_llp

Do you want to know the conversion from a Private company into an LLP?

Let’s have a look at the concept of conversion from a Private Company into a Limited Liability Partnership in the simplest way. Here, we are going to discuss the process of conversion.Before discussing the process, let me tell you the advantages when we do the conversion of a company into an LLP.

http://www.onlinecompanyregistration.in/llp-registration-coimbatore.php


Conversion of a Private Company into the “Limited Liability Partnership”Conversion of a Private Company into the “Limited Liability Partnership”


Advantages of LLP:

The Limited Liability Partnership concept arrived mainly for the benefits of entrepreneurs.

Lower the compliance and less contribution.

Liability will be very limited for the partners.

By having a separate legal entity, the LLP can sue and get sued in its own name.

In the fast growing business sectors, LLP is the one which is more effective and efficient in all the aspects.



Any change in the partners of an LLP would not affect the rights and liabilities in the existence of an LLP. On the contrary, in the traditional partnership, if any changes in the partners, the partnership would dissolve.


Advantages of LLP:


WHAT IS “CONVERSION”?

As per the LLP Act, it means a transfer of the property, assets, interests, rights, privileges, obligations, liabilities and undertaking the private company to the LLP.



Eligibility for LLP: Eligibility for LLP:

The Act provides that upon such conversion process, the company, Shareholders, the LLP (the company which is in conversion process) and the partners of the concern shall be bound by the provisions and they are applicable.


Procedure for conversion:

Before starting the process of conversion, ”Digital Signature Certificate” and “Director Identification Number” must be obtained by all the shareholders of the company; after getting those things, the private company into LLP must be filed with the registrar along with the prescribed documents. They are as follows:

The first thing is to obtain the statement by all the shareholders in such a form and a fee which is prescribed by the Central Government.

Name and Registration Number of the Company.

Need to get a certificate which is from the tax authorities which is about non-objection.

Financial Statement of the particular concern.


After checking the details, the registrar will produce a Certificate of Incorporation of LLP. During the conversion process, the private company will be considered to be dissolved since the properties, assets, rights, liabilities will be transferred to LLP.

Procedure for conversion:



INCORPORATION DOCUMENT:

It states the following information :LLP nameRegistered office , its address, the state in which its located.What is the business type that is to be carried on by the LLP?Summary of Partners( which includes all the details of the partners like how many of them are get into a partnership?The Number of Partners and the number of bodies corporate as the partners and their complete details.The contribution of the partners and the total value of that will be mentioned.



conversion of private_company_into_llp

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