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PROPRIETORSHIP TO LLP
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- PROPRIETORSHIP TO LLP
- +91 7977043372
- +91 7977043372
- info@lawsarathi.com
A Sole Proprietorship is known as a simple structure for starting journey of an entrepreneur, but it might make obstruction in future development. If you want to add partners in your business in order to facilitate advantages of various thoughts, but don’t want enhanced disturbance concerning structure or cost, compliance, then it is recommended to switch to an LLP.
If you don’t want to take liability for misconduct of another partner, lack of skill or negligence, you want to restrict your liabilities for the debt and losses then LLP might be the best option to go with. Switching to LLP can help you enjoying tax benefits.
1 – You need to submit your necessary documents to us for starting the conversion process.
2 – At One Click Business Solutions, we will assign dedicated and skilled resource to process your request for conversion.
3 – We will help you with preliminary documentation :
Determine availability and requirement of document
Preparing documents
The Incorporation documents must be signed by promoters
Submitting the signed documents to Registrar of Companies
4 – Your company name will be checked by us, application should be made for DSCs and DIN
5 – We will make application for Incorporation certification.
6 – We will make LLP Agreement, stamping it and filing it for Incorporation
7 – As soon as your LLP is registered, all the documents and DSCs will be sent to you
Note – Entire conversion procedure takes 25 to 30 days approximately and also depends upon documents offered by applicant and approval offered by the government
| Step No. | Steps | Approximate Time in working days |
| 1 | Preliminary Documentation Discussion between BMC Team and the Promoters of the Company : Determine need and availability of document Preparing for signed documents by BMC Signing of the documents of Incorporation by Promoters Sending the signed document by promoters to BMC | 5 |
| 2 | DSC (Digital Signature Certificate) Obtaining DSC for any one of the Director for digital verification of the Incorporation documents | 1 |
| 3 | DIN (Director Identification Number) Approved DIN is a pre-requisite for the process of incorporation | 1 |
| 4 | Preparing main object and name availability search Preparing main object by BMC The promoters need to offer at least 6 (Six) names according to their priority Making an online search for availability of names as desired by the Promoters Affirmation of the draft main object and the final name | 3 |
| 5 | Application for Name Availability Filing of Form 1A with the associated ROC | 5 |
| 6 | Incorporation Process After getting approval of ROC for name of the Company, filing complete documents of Incorporation with the ROC e-Forms should be uploaded online Payment of Registration fees Getting incorporation certificate | 5 |
| 7 | Post-Incorporation Process : Make LLP Agreement by BMC Affirmation of LLP Agreement by the Promoters Stamping of LLP Agreement Filing of Form 3 | 5 |
LLPs continue their existence even after the death of the Partner
Protects personal assets from business liability
More flexible management structure
Separate the business from personal money
No audit where capital contribution is below 25 lac
No audit by a chartered account if turnover is below Rs. 40 Lac
Automatic transfer – Complete assets and liabilities of the firm will be transferred to the LLP immediately before the conversion.
No Stamp Duty – All movable and immovable properties of the firm will be included in the LLP automatically. There is no need of any instrument for transfer and therefore no stamp duty is needed to be paid.
There is no Capital Gain Tax – Capital Gains tax shall not be charged while transferring property from proprietorship firm to LLP.
Furtherance of Brand Value – Brand value and goodwill of the firm is kept unchanged and it is incorporated to get benefit from previous success story with legal acknowledgment.
Carry forward and start out losses and unabsorbed depreciation – Accumulated loss and unabsorbed depreciation of firm is considered depreciation/loss of the successor LLP for the previous year in which conversion took place. Therefore such loss can be passed for more eight years in the hands of the successor LLP.
At least 2 Shareholders is required for LLP Registration
Minimum 2 Directors are essential
DIN is compulsory for all Directors
Passport size photograph of Directors
Copy of PAN Card of the Directors
No Objection Certificate from Landlord (Specified format will be given)
Copy of Property papers (in the case of owned property)
Copy of Rent agreement (in the case of rented property)
Copy of Voter identity card/ Aadhaar Card
Electricity/ Water bill of the Business Place