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February 4, 2022
All about Conversion of a LLP to a Private Limited Company in India
Table of Content
Introduction
In this article there is a detailed understanding on converting of LLP to Private limited company, Benefits of conversion to Private limited company from LLP (Limited Liability Partnership), Change an LLP to a Pvt Ltd Company and other information on changing an LLP to PVT LTD Company. Several businesses that began as Limited Liability Partnerships (LLPs) in India may now desire to change to a private limited company in order to expand their operations or raise equity financing. The provisions of Section 366 of the Companies Act, 2013 and the Firm (Authorized to Register) Rules, 2014 allow an LLP to be changed into a Pvt. Ltd. company.
Change an LLP to a Pvt Ltd Company
Limited Liability Partnership registrations in India increased by 55 percent in the fiscal year 2014-15, and this trend is expected to continue as more people become aware of the benefits of LLPs. Small enterprises that do not anticipate the need to raise equity financing are the majority of those who choose to form an LLP. However, for a variety of reasons, some small firms may need to change to a private limited company at some point. As a result, we’ll look at how to convert an LLP into a private limited company in this post.
Procedure to change an LLP to a PVT LTD Company
A Limited Liability Partnership (LLP) can be converted into a Private Limited Company (PLC) as per the provisions contained in Section 366 of the Companies Act, 2013. The steps in brief to be followed for the same are listed below:
- For conversion into a PLC, the LLP must have at least 7 partners;
- Approval of majority of the partners for conversion is required;
- Consent of secured creditors of LLP;
- Newspaper advertisement in English and local language seeking objections with respect to the conversion;
- No Objection Certificate from the concerned Registrar of Companies (LLP);
- Name approval for PLC, obtaining of Director Identification Number and Digital Certificates for Directors;
- Filing of Form URC-1 with Registrar of Companies along with requisite annexures;
- Signing of Memorandum and Articles of Association of PLC;
- Filing of Incorporation forms with Registrar of Companies;
- Issuance of Certificate of Incorporation by Registrar of Companies.
Private Company Limited Registration
Simplest and a very popular form of Company Registration in India.
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