Every company has its boundaries and regulations in respect of which it gets registered as per New Companies Act 2013 in India. As we all know it is mandatory for every company to get its business registered under the respective act. Private company, public company, (One Person Company), sole-proprietorship or LLP all are having distinct rules while getting registration. If you got registered under any of the form of corporate and then in future needs to transfer in other form; there are certain provisions that are being entitled for the same purposes.
Here under this section we bring you with how to change a business to a LLP means how to convert your company despite of private or public to limited liability partnership company. But before commencing with the same; we want to share some esteem points that one business should holds while converting to limited liability partnership. There are various segments including property, assets, liability, rights, interest, privileges and obligations need to transfer from business to LLP under third schedule. All the heads are usually getting vary as you move from one form of corporate to another.
Steps / Procedure for Convert a Business to Limited Liability PartnershipThere are certain procedures and steps that one needs to follow while converting a business to LLP.
- To convert business to LLP means your business should be registered under New Companies Act 2013.
- There should be atleast 2 designated partners out of which one should be resident of India.
- Obtain DIN number for designated partners and get digital signature certificate for atleast one of the designated partners.
- Form 1 for LLP name approval by filing an application to ROC.
- Form 18 for conversion of business to LLP.
- Form 2 for defining the detail of partners or subscribers.
- Form 3 for mentioning LLP agreement that should be filed within 30 days from the date of registration.
- File other legal documents including name and registration no. of the company; date of its incorporation, fee submission and many more.
- After all these steps; ROC verify all these documents after which will issue a certification of registration of LLP.
- After the registration of LLP; file an application under Forum 14 stating that the current company is now being converted to LLP.