When it comes to personal liability for the debts and obligations of a business, there is a significant difference between a proprietorship and an LLP. In a proprietorship, the proprietor is personally liable for all debts and obligations of the business. This means that if the business is unable to pay its debts or faces legal action, the proprietor's personal assets are at risk.
After the LLP Agreement is prepared, the name of the LLP needs to be reserved using the RUN-LLP facility on the Ministry of Corporate Affairs (MCA) website. Once the name is reserved, the incorporation documents such as the LLP Agreement, Form-2, and Form-3 need to be filed with the Registrar of Companies (RoC) within 60 days.
After filing the incorporation documents, the RoC will review and approve them, and a Certificate of Incorporation will be issued. Once the LLP is registered, the proprietorship firm will be dissolved, and all its assets and liabilities will be transferred to the LLP.
The process of Proprietorship to Limited Liability Partnership has been made smooth and streamlined by Legal Dev Conversion of Proprietorship Firm to LLP Service Provider. The Legal Dev has put in place a simple and straightforward procedure For Conversion of Proprietorship Firm to LLP:
Some of the documents that are required forConversion of sole proprietorship firm into LLP include:
Legal Dev, as a professional legal services provider, can help ensure that business owners comply with all the legal and regulatory requirements of Convert Proprietorship to LLP in India. Our team of legal experts can guide business owners through the conversion process, ensuring that all the necessary documents and procedures are completed accurately and on time to avoid any penalties, fines or legal action.
LLP stands for Limited Liability Partnership, which is a type of business structure in which the partners have limited liability for the debts of the partnership.
An LLP provides limited liability to its partners, whereas a proprietorship firm does not.
Some advantages include limited liability protection, tax benefits, ease of transferability, and better access to funding.
No, it is highly recommended to seek the help of a professional to ensure a smooth and successful conversion process.
The process involves obtaining a Digital Signature Certificate and DPIN, preparing the LLP Agreement, reserving the LLP name, filing incorporation documents, and obtaining a Certificate of Incorporation.
The conversion process typically takes around 15-20 days, subject to approval from the Registrar of Companies.
No, the partners have limited liability and are not personally liable for the debts of the LLP.
Yes, an LLP can have more than two partners, subject to the maximum limit of 200 partners.