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What is an LLP (Limited Liability Partnerships)?

A limited liability partnership (LLP) is one in which some or all of the partners have limited liability.

Steps for converting of Partnership Firm into LLP:

The steps for converting Partnership Firm to LLP is as follows:

1. Acquire digital signatures from all partners.

In a broad sense, partners in a general partnership will not have a digital signature because it is not required for partnership firm enrollment.

2. A DPIN/DIN is required for LLP partners. As a result, procure DPIN/DIN for all partners.

A DIN is a specific number assigned to each LLP Partner or Board member.

3. On the MCA website, fill out the RUN-LLP Form to request a name reservation.

Prior to applying for a name reservation, the applicant should review the regulations for selecting an LLP name.

4. Fill out Form FiLLiP for the Application and Statement for the Transformation of a General Partnership to an LLP.

Documents are needed for LLP registration as well as Form FiLLiP.

5. After completing the registration process by filing Form FiLLiP, the LLP Agreement must be registered with MCA.

Fill out LLP Form 3 for LLP Agreement Registration, which includes the specifics of the LLP agreement and the partners’ resolution with the MCA.

6. Upon successful conversion to an LLP, the ROC will issue a Certificate of Incorporation of an LLP.

Furthermore, when the LLP is formed, and the Partnership Firm is transformed, the Partnership Firm is deemed dissolved.

FAQs

What’s the distinction between a designated partner and a partner?

In an LLP, designated partners and partners are treated separately. Furthermore, the selected partners are more accountable than the partners. Moreover, they are responsible for all day-to-day business operations along with all regulatory and legal compliances.

What paperwork is required to convert a partnership to an LLP?

1. Proof of office address
2. Regulatory authority approval
3. Proof of office address
4. Filing of the most recent income tax return
5. NOC from the tax office
6. Creditors and their approval
7. The partnership’s liabilities and assets should have been certified.

 Will an Annual Return be required to be filed by an LLP?

Every LLP would have to file an Annual Return with the ROC. The LLP must file an Annual Return in e-Form-11 with the Registrar. Including the prescribed fee in under sixty days of the end of each fiscal year. ITR needs to be filed.