Conversion of Partnership firm to LLP

After the introduction of the LLP Act, in 2008, many Partnership Firms have started to convert their Partnership Firm to LLP. The reasons for conversion are self-evident such as the ability to take an unlimited number of partners, separate legal entity, limited liability and ease of ownership transfer. Because of these advantages of LLP over Partnership, LLP has become very popular amongst small and medium-sized businesses.

The Partnership Firm which wants to convert itself to LLP must be registered under the Indian Partnership Act, 1932. Unregistered Partnership Firm can’t be converted to LLP. LLP incorporated by conversion of Partnership Firm to LLP must have the same partners as they were in the Partnership Firm. Therefore it is suggested that the Partnership Firm should retire all the Partners who do not wish to be a part of LLP and if new partners are to be added, they should be added after the incorporation of LLP.

Minimum Requirements for Conversion to LLP