Home / Convert Partnership Firm To LLP

Updated on 17 May 2021    9.00 AM IST | 4 min read

Conversion of Partnership into LLP

As an entrepreneur, India offers you many options to select a business. You can choose among various forms of businesses but before choosing the form of business, you must know the requirements, advantages & disadvantages of all these forms of business. You need to check that which form of business benefits you the most. If we talk about partnership, one of the biggest disadvantages of this form of business is unlimited liability. It means personal assets of the partners are at high risk but many forms of business provide you the advantage of limited liability too. For ex – LLP & Private limited company.

Entrepreneurs now days’ converting the partnership firms to LLP’s to prevent risk of unlimited liability. There are many reasons for converting partnership firm into an LLP and they are as follows –

  1. Separate legal entity
  2. Unlimited number of partners
  3. Limited liability
  4. Ease of ownership transfer

LLP is very popular among small & medium sized businesses. Any partnership firm want to convert into LLP must be registered under India partnership act, 1932. Partnership firms who are not registered under Indian partnership act 1932 cannot convert partnership firm into LLP.

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Minimum Requirements To Convert Partnership Firm Into LLP

  1. Minimum 2 partners
  2. DPIN for all partners
  3. DSC for all partners
  4. One designated partner should be an Indian citizen
  5. Consent from all unsecured creditors for conversion in LLP
  6. The partners shall receive consideration only by way of allotment of shares in LLP.
  7. There should be some sort of contribution from every partner
  8. Up to date submission of income tax returns.

Advantages of Converting Partnership Firm Into LLP

  • Separate legal entity
  • Limited liability
  • Minimal compliances
  • Set up cost is low
  • Tax advantages

Procedure of Converting Partnership Firm Into LLP

The procedure of converting partnership firm into LLP is as follows –

  • Step 1 – In the first step, make sure you have DSC (Digital signature certificate) while converting a partnership firm into an LLP. This is the first compulsory requirement to convert partnership firm into an LLP. If you are not having DSC, apply for it as early as possible as the same is required for all the partners.
  • Step 2 – In the next step, you have to obtain a DPIN (Designated partner identification number). It is also a mandatory requirement for at least 2 partners to proceed further with the conversion process. DPIN is a unique number given to each person holding position of LLP partner or director. It is issued for a lifetime without any renewal.
  • Step 3 – In the third step, you have to select the name for an LLP and apply for name approval with ministry of corporate affairs (MCA). Selection of name is not an easy task and it should be selected carefully. It should be unique & limited liability partnership must be used at the end of the company’s name.
  • Step 4 – After getting the name approval from MCA in step-4, you have to file LLP form 17 along with the incorporation application as well as subscribers sheet to convert a partnership firm into LLP. The following documents mentioned below must be mandatorily attached with LLP form 17 –
    1. Copy of acknowledgement of latest income tax return
    2. Statement of assets & liabilities of the firm certified by any chartered accountant of India.
    3. Statement of consent of partners of the firm
    4. List of approval of all the secured creditors for converting a partnership firm into LLP.
    5. No objection certificate from tax authorities.
    6. Approval from any regulatory body/authority.
  • Step 5 – In the fifth step, LLP form 2 & LLP form 3 is also to be filed along with LLP form 17. LLP form 2 includes incorporation document and subscriber’s statements. The following documents mentioned below must be submitted along with LLP form -2 -
    1. Proof of registered office of LLP
    2. Approval of regulatory authority (If required)
    3. Subscriber’s sheet including consent
    4. Details of LLP/company in which person is a director or a partner.

    LLP form 3 includes LLP agreement. LLP agreement should be attached with form-3 and this form is filed once the partnership firm is converted into LLP.

  • Step 6 – After successfully filing all the documents along with the prescribed fees, the certificate of conversion will be issued by registrar after verifying all the documents.

Convert Partnership Firm Into LLP FAQ’S

Any individual or organization can become a partner in LLP. Foreigner’s/NRI’s are also eligible to become a partner in LLP.
No, It is 100 % online procedure. Therefore, there is no need for you to present physically during the procedure.
There is absolutely no additional payment as well as no hidden charges at all.
Yes, after acquiring the DIN & DSC, any foreign national or NRI can become a designated partner in LLP but make sure that one designated partner should be an Indian citizen.

What Clients Say

Customer delight is our main goal and we are very serious about it.

Prakash Verma

Prakash Verma

“Finacbooks.com is a perfect example of a great customer service dealing with the best of accountancy services.“

Prakash Verma Signature

Praveen Chauhan

Praveen Chauhan

“They offered us good quality services in a least possible time at a best Price.“

Praveen Chauhan Signature

Pradeep Kochhar

Pradeep Kochhar

“Finacbooks.com is a trusted network of highly qualified accounting professionals who not only provided us quality accountancy services but also supported us by answering our each & every query on time without any delay. “

Pradeep Kochhar Signature

Informational, useful and resourceful


Catch up our trending topics, news etc. in a simple, detailed and most professional way.

Refunds under GST - When and how to claim GST returns?
05 May, 2021

What is GST Return? A GST return is a document containing a record of all sales and purchases along with the GSTIN of the taxpayer.... Read More

E-Invoicing Versus Invoicing
30 Apr, 2021

One of the most discussed terms of the year 2020 has been GST. Since 2020 people have been trying to find out the changes that GST carries... Read More

E-invoicing under GST- a brief intro
21 Apr, 2021

In its 35th meeting, the GST council decided on a system of invoicing i.e., e-invoicing. This system of e-invoicing applies to few specific... Read More

Due Dates

  • Monthly GSTR 8 (Summary of Tax Collected at Source (TCS) and deposited by e-commerce operators) for Apr 2021

    May 10th ,2021
  • Monthly GSTR 7 (Summary of Tax Deducted at Source (TDS) and deposited) for Apr 2021

    May 10th ,2021
  • GSTR 1 for Apr 2021 (turnover more than INR. 1.50 Crore)

    May 11th ,2021
  • GSTR 6 (Details of ITC received and distributed by ISD) Monthly Filing Due Date for Apr 2021

    May 13th ,2021
  • Last date of depositing the sixth instalment of advance tax (if liable to pay any) for FY 2020-21 for individual and corporate taxpayers

    May 15th ,2021
  • GSTR 3B for Apr 2021 (Annual Turnover of more than Rs 5 Cr in Previous FY)

    May 20th ,2021