Now a days more and more partnership firms are getting it converted into LLP. LLP offers a wide range of benefits to its members such as unlimited partners, limited liability etc.
A partnership firm can be converted into an LLP by following the following procedure;
1. Application for digital signatures: All the designated partners of the partnership which needs to be converted into an LLP, will require to get their digital signatures as the simple partnership firm do not require digital signatures.
2. Application for DIN/DPIN : All the designated partners will required to get the DIN/DPIN after getting their digital signatures which is mandatory in case of LLP and Companies registered under companies Act. A DIN/DPIN once obtained need not to renew and remain active for the lifetime of the DIN/DPIN holder.
3. Name Approval: Once the DIN/DPIN have been issued to the partners they can make an application to the ministry of corporate affairs for the name reservation of the proposed LLP.
4. Conversion of partnership into LLP: LLP form 17 , LLP form 2 and LLP form 3 must be filed in order to convert the existing partnership into LLP with required documents and prescribed fee.
5. Issue of Certification : If the registrar is satisfied with the information and documents filed for the conversion of partnership into LLP to be true and satisfactory, he will issue a certificate of incorporation of LLP. Once the LLP is incorporated all the liabilities and assets of the partnership shall me transfered to the LLP and the partnership shall stand dessolved. One point to be taken care of in conversion of partnership into LLP is, any licenses under any written law issued to the partnership shall not be transferred automatically, hence, fresh licenses and approvals will required to be made after for the LLP.