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Nowadays, many partnership firms are converting themselves into Limited Liability Partnership<\/a><\/strong>, because it provides some amazing benefits like – limited liability protection, no maximum limits for the number of partners, easy to transfer ownership, etc.<\/p>\n Related:\u00a0 Conversion of an LLP into Partnership<\/strong><\/a><\/p>\n Mentioned below are the steps required to be followed to convert a Partnership Firm into an LLP :<\/p>\n Typically the Partners in a Partnership Firm\u00a0do not have a digital signature because it isn’t necessary for the registration of a partnership firm. However, if the partners decide to convert the Partnership Firm into an LLP, then the \u00a0Digital Signature Certificate<\/strong><\/a>\u00a0(DSC) is a mandatory requirement for all the Partners.<\/p>\n The Partners in an LLP or the \u00a0Directors in a Private Limited<\/strong> Company<\/strong><\/a> require a DIN<\/a><\/strong> \/ DPIN. A DIN is a unique number that is given to each partner or a director of an LLP. Once, a DIN\/DPIN is issued, it can be used without any renewal or any compliance filing for the lifetime.<\/p>\n Once, two DIN\/DPIN are available, an application for name reservation of the prospective company can be made to the Ministry of Corporate Affair. The Reservation of the name of the LLP must be obtained before filing the forms for the conversion of the Partnership Firm into LLP.<\/p>\n Application and a \u00a0Statement of the Conversion of Partnership Firm into LLP (Limited Liability Partnership) i.e., Form 17\u00a0 should be filed along with the incorporation application. The subscriber’s sheet should also be filed while converting a partnership firm into an LLP. After filling the form 17 the mentioned documents should be mandatorily attached to it:<\/p>\n Once, an LLP Form<\/a><\/strong> 17 is filled it must be digitally signed by a Designated Partner from a professionally practicing Chartered Accountant\/Cost Accountant\/Company Secretary.<\/p>\n For the Conversion of a Partnership Firm into LLP, LLP Form 2 and LLP Form 3 must also be filed.\u00a0LLP Form 2\u00a0contains the incorporation document and the subscriber\u2019s statement along with the following attached documents:<\/p>\n LLP Form 3 contains the initial Limited Liability Partnership<\/strong><\/a> Agreement. This form can be filed once the Partnership Firm is converted into an LLP\u00a0or while filing for the conversion of the Partnership Firm into LLP. The LLP Agreement<\/a><\/strong> must be attached to the \u00a0LLP Form 3.<\/p>\n On successful conversion of a Partnership Firm into LLP, the Registrar would then issue a Certificate of Incorporation of LLP, and all the properties, assets, interests, rights, privileges, etc. of the firm are now transferred to the LLP. In other words, the complete undertaking of the firm is transferred to the LLP.<\/p>\n However, any approvals\/permit\/license that is issued\u00a0under any law to the Partnership Firm will not be automatically transferred to the Limited Liability Partnership<\/a><\/strong>. Therefore, fresh licenses or any registrations may be required. This aspect of the conversion of a Partnership into an LLP must be well considered before the conversion process.<\/p>\nStep 1 \u2013 Requirement of Digital Signature:<\/u><\/strong><\/h2>\n
Step 2 \u2013 Requirement of DIN or DPIN:<\/u><\/strong><\/h2>\n
Step 3 – Getting the Name Approval done:<\/u><\/strong><\/h2>\n
Step 4 – Filing LLP Form 17:<\/u><\/strong><\/h2>\n
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Step 5 – Filing for Incorporation & Conversion of Partnership into LLP:<\/u><\/strong><\/h2>\n
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Successful Conversion of Partnership Firm into LLP<\/strong><\/h2>\n