Starting a business with a Limited Liability Partnership (LLP) is a good idea. The next stage is when you want to convert Limited Liability Partnership (LLP) to a Private Limited Company for more growth in business or maybe for Funds Raising. It is possible to convert Limited Liability Partnership into a Private Limited Company in India in accordance to Section 366 of the Companies Act, 2013 & Company (Authorized to Register) Rules, 2014. There are many requirements which are necessary for converting a Private Limited Company into a Private Limited Company such as an approval from all the partners along with the advertisement in local newspaper & a national newspaper and a No Objection Certificate (NOC) from the ROC.
Convert limited liability partnership (LLP) to a Private Limited Company
Benefits of converting limited liability partnership (LLP) to a Private Limited Company:
- Shields personal assets from business liability, limits liabilities of Directors.
- The Private Limited Company (Pvt. Ltd) continues to exist even after the death of the Shareholders
- Open doors to raise capital from a venture capitalist, angel investor, financial institutions etc.
- Creates brand value as private limited structure is more transparent compared to other business structures.
- Ownership gets transferred by just transferring shares.
- Private Limited Company being a unique identity, can own/acquire and alienate, property in its name. Property owned could be anything like copyrights, patents, machinery, building, intangible assets, land, residential property, factory etc.
- Funding or Borrowing Capital: It’s easy for private limited company to get funding or borrow capital from angle investors / venture capitalists / banks / Financial Institutes in comparison to other company types.
The following documents are required for the conversion of an LLP into a Private Limited Company:
- PAN Card
- Voter's ID/Aadhaar Card/Passport/Driver's License
- Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Passport-sized photograph
- Scanned copy of Rent agreement with NOC from the owner
Corpseed procedure for Conversion of Partnership to Private Limited Company
Step 1: Contact Corpseed team, provide the necessary documents to initiate the conversion process.
Step 2: We will assign a dedicated and skilled resource to process your request for conversion.
Step 3: Apply for Company Name Reservation
Step 4: Draft Articles of Association and Memorandum of Association
Step 5: Apply for Company PAN
Step 6: Apply for Company TAN
Step 7: Apply for Corporate Identification Number (CIN)
Step 8: We will apply for Incorporation certification.
Step 9: Once your Private Limited is incorporated, we will send you all the documents.
Note: Whole conversion process takes between 25-30 days and also depends upon documents provided by applicant and approval speed by the government
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Once you discuss the requirement, we will align a dedicated Account managers to understand your business needs and provide solutions and assist entire process.
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Once job is completed, you will receive complete registrations & certifications directly to your email ID and at your doorstep