LLP to Private Limited Company
A Private Limited Company is one of the popular business organizations amongst startups and emerging businesses. Limited Liability Partnership (LLP) can be easily converted into a Private Limited Company and can avail various benefits like infusion of additional investors, separation between ownership and management, etc.
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Conversion from LLP to Private Limited Company is suitable for medium and large-scale or capital intensive businesses, start-ups as it allows outside funding to be raised easily, limits the liabilities of its shareholders, has lower tax rates, and enables them to offer employee stock options to attract top talent. Limited Liability Partnership (LLP) registered in India with 2 or more partners can be converted into a Private Limited Company as per the provisions contained in Section 366 of the Companies Act 2013.
A Private Limited Company is a type of business structure, which provides separation between ownership and management, provides flexibility in the transfer of ownership and management. However, the private limited company may induct up to 200 shareholders and shares of which are prohibited from being publicly traded. Therefore, nowadays, many Limited Liability Partnerships (LLPs) are converting into a Private Limited Company for more growth and expansion purpose.
Advantages of Converting an LLP into Private Limited Company
Minimum Requirements For Conversion of LLP into Private Limited Companies
What is included in our conversion of LLP into Company Package
Procedure for conversion of LLP into Company
Documents Required for Conversion of LLP into Company
Effects of conversion of LLP into Company
- All the moveable and immovable property including actionable claims held by the LLP shall vest in the company.
- All the rights and liabilities of the LLP in respect of any debt or obligation or contract entered into prior to such conversion shall continue in the name of the company.
- All the contracts entered into with various stakeholders’ viz., vendors, customers, service providers, consultants and employees shall continue upon conversion.
- All legal proceedings shall continue in the name of the new company.
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