Convert Partnership Firm To 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.