Conversion of Proprietorship to Limited Liability Partnership

Conversion of Proprietorship to Limited Liability Partnership - Process, Procedure, Document Required, Fees, Eligibility, Duration

Proprietorships convert to an LLP to take their business to the highest level. When a Sole Proprietorship converts to an LLP, there forms a joint venture made up of partners whose liability is restricted to the capital invested by each. The personal property of the partners is not liable for the firm's debts under an LLP. So, an LLP has a broader scope of business than a Proprietorship which pushes it to convert to LLP.

Key points of LLP

• An LLP must have at least two members. There is no limit to the number of people who can be a part of it.
• The Limited Liability Partnership's members have limited liability.
• An LLP is a corporate body with a legal entity apart from the partners who are members of the organization.
• An LLP can be established with a little amount of cash.
• The LLP is not required to pay tax on the income and share of its partners.
• In comparison to other types of businesses, the cost of registering an LLP is modest.

Documents required for conversion to LLP

The following are the documents required for conversion of Proprietorship to LLP:

• PAN Card
• Aadhar card
• Photograph of all the Directors
• Electricity Bill
• Company address proof