Procedure and requirements for Converting Limited Liability company to Limited Liability Partnership are listed below
● They should be no pending E-forms by the company
● The company should complete one financial year.
● They should make sure to update all the income tax filings as well as return forms.
Now Let’s Have A Look At Process For Conversion
After the proper check lists of all the required documents the company need to go through following procedure
1. Obtain designated partner identification number (DPIN) for the all designated partners.
2. The application of DPIN should be done online in (E-Form 7)
3. Decide and apply for name of proposed LLP (form-1)
4. The registrar approves the name applied for LLP
5. The application is made in (E-Form 1) with availability of the proposed name with the Registrar
6. Application fees should be paid by of credit card.
7. Application for conversion of firm is to be made in (E-Form 18) with the following attachments :
○ Shareholders statement in a tabular form
○ Document and statement of incorporation which is filled in e-form 2
○ Assets and liabilities of Company which should be true and certified by the chartered accountant.
○ They should be list of creditors plus consent for conversion in a tabular form.
○ Approval from the governing council.
○ No Objection Certificate (NOC) should be issued by Income Tax authorities.
○ If they are any pending proceedings of court then its particulars are to be submitted.
○ Other optional attachments as may be required.
8. If the registrar is satisfied that all the documents of the application is in order and that it consists of regulations, procedures as required then he will register the conversion.
9. The Registrar will now issue the certificate of registration of company on conversion of the private limited company into LLP in Form 19 of the LLP which are as per the Rules & Forms 2008.
10. The certificate of registration with new LLP is formed within 15 days from the day registration is made.
11. Form 14 should consist of following attachments
○ Copy of Incorporation certificate of LLP formed.
○ Copy of statement of incorporation document submitted in Form 2 (with the Registrar of Firms)
○ Optional attachments as may be required by the registrar.
12. The limited liability association should guarantee that for a time of twelve months initiating not later than fourteen days after the date of registration, each official correspondence of the limited liability organisation bears the accompanying, in particular:—
o A statement that it was, as from the date of registration, changed over from a company into a limited liability partnership; and
o The name and registration number of the company from which it was changed over.
13. Any limited liability association which contradicts the previously mentioned arrangements might be punishable with fine which shall not be lesser than Rs ten thousand rupees and not exceeding Rs one lakh rupees and with a further fine which will not be under fifty rupees and may go up to five hundred rupees for continued default