Limited Liability Partnership to Private Limited Company
There are certain firms in India that started out as a Limited Liability Partnership (LLP), but are now looking to convert to a private limited company in order to expand and develop. An LLP can be changed into a Private Limited Company, according to Section 366 of the Companies Act, 2013 and the Company (Authorized to Register) Rules, 2014.
The Private Limited Company has various requirements that must be met in order to convert an LLP to a Private Limited Company. For example, an LLP must have seven partners and all partners must approve the conversion. An advertising is placed in both a local and national media, a No Objection Certificate (NOC) is obtained from the ROC where the LLP is registered, and the process of incorporation commences.
Process of Conversion of LLP into a Private Limited Company
Approval of a Name
Obtain ROC (Registrar of Companies) 'Name Approval' by submitting an e-format application.
Keeping DSC and DIN secure
Each of the company's seven directors must get a Digital Signature Certificate (DSC) and a Director Identification Number (DIN). A DIN number can be obtained by completing an application form on the MCA website. The application for a DIN is approved by the central government through the ministry of corporate affairs' office of regional director. Before submitting the form, be sure to self-attest it and include proof of address and identification, as well as one passport-sized photo of the applicant.
Filing Of Form URC-1
After receiving name clearance from the Registrar of Companies, the applicant must complete and submit Form No. URC-1.
Articles Of Association And Memorandum Of Association
Prepare and submit the Memorandum of Association (MOA) and Articles of Association (AOA) to the Registrar of Companies. The Registrar of Companies issues the form URC-1 once the company name has been approved. The primary reason for converting an LLP to a Private Limited Company is business expansion. The LLP framework is not suitable for venture capitalists or private equity firms, and investors prefer to invest in private limited companies. Private limited businesses are also preferred over limited liability partnerships (LLP) for FDI purposes. As a result, converting an LLP to a private limited company might be a prudent move that must be carried out in accordance with all applicable legislation.
Documents Required for Limited Liability Partnership to Private Limited Company
- Shareholders’ and Directors’ PAN Cards Passports from foreign nationals are acceptable.
- Shareholders and Directors must show their voter ID, passport, or driver’s licence.
- Shareholders and Directors’ latest bank account statement/telephone bill/electricity bill
- Shareholders and Directors’ most recent passport-size photographs
- The registered office address’s electricity/telephone bill
- The owner(s) of the registered office must provide a No Objection Certificate.
- If the registered office has a rent agreement, it should be presented.
- Documents of the director(s) must be notarized or apostilled in the case of an NRI or a foreign national.
- A copy of the Limited Liability Partnership’s most recent income tax return.
Advantages
1. Brand Value Preservation
Converting an LLP to a Private Limited Company allows businesses to keep their brand name without having to spend any more money on advertising.
2. Unabsorbed Losses And Depreciation Are Carried Forward
There will be no bookkeeping costs after the conversion because the losses and depreciation accrued in the LLP will be passed over to the new business.
3.Employee Stock Ownership Plan
Converting an LLP to a private company allows businesses to provide stock ownership and employee stock ownership schemes. Such plans assist businesses in attracting efficient staff by providing incentive plans for them to work for them.
4. Fundraising Made Simple
It enables the company structure to be more reputable among others if the company registration process is strict. This makes it simple to raise funds from outside sources.
5. Legal Existence on its Own
Separate ownership and management can focus on their potential job after the company is converted. Shareholders delegate responsibility for the company's management and operations without relinquishing control through voting.
6. Owners' Liability Is Limited
The obligation of the owners is limited to the capital they subscribed and did not pay.
OUR PRICING PLANS
Standard
₹ 14,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
Gold
₹ 16,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
- articles of association (AOA)
- Bank account opening
- GST registration
- MSME / UDYAM registration
Platinum
₹ 19,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
- articles of association (AOA)
- Bank account opening
- GST registration
- MSME / UDYAM registration
- Share certificate issue
- company commencement form filling