Unregistered Partnership Firm can't be transformed to LLP. The partners in an LLP that was formed by converting a partnership firm into an LLP must be the same.
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Following the introduction of the LLP Act in 2008, a number of partnership businesses started to transition to LLPs. The advantages of conversion are clear; these include the capacity to admit an endless number of partners, the formation of a new legal entity, the limitation of responsibility, and an easy ownership transfer process. LLPs are becoming more and more common among small and medium-sized businesses as a result of their advantages over partnerships.
The Partnership Firm wishing to become an LLP must register under the Indian Partnership Act, 1932. You cannot convert an unregistered partnership firm to an LLP. When a partnership firm is converted into an LLP, the partners in the new entity must also be the same. Consequently, it is advised that new partners be added after LLP has been created and that the Partnership Firm retire any Partners who do not want to be a part of LLP.
However, there is a formal process that needs to be followed in order to complete the previously described process, and LegalRaasta's legal advisors may assist you with this.
A partnership or agreement between two or more people to split the gains and losses of a specific endeavor or business.
The profit sharing percentages of the partners are laid forth in a separate legal document called a partnership deed.
Limited liability status gives partners more freedom and flexibility.
A copy of each proposed partner's PAN card
Passports, election cards or voter identity cards, ration cards, driving licenses, and Aadhaar cards are all acceptable forms of address or identity proof for Indian citizens not more than 2 months old.
The Partner's Ownership Proof must include no more than 2 months old Electricity Bills, Telephone Bills, Gas Bills, Mobile Bills, or any other utility bills from the company location.
For Digital Signature Certificate we required two most recent passport photos.
All directors and members must provide the most recent bank statements no older than two months.
If a rented premises agreement or property papers are required, a copy of address proof is required.
The landlord NOC should be in given downloaded PDF format.
Any information pertaining to the partners' contributions.
Any information pertaining to the partnership firm's partnership deed or documents pertaining to the post-partnership incorporation process.
The proposed LLP's proposed name and authorized capital.
Timely filing of income tax returns.
All creditors must agree to the proposed conversion in LLP.
Two partners are required, of whom at least one must be an Indian resident.
DPIN & DSC for all Partners.