CONVERSION OF EXISTING PARTNERSHIP INTO LLPS
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CONVERSION OF EXISTING PARTNERSHIP INTO LLPS
1. PARTNERSHIP TO LLP
A Limited Liability Partnership (LLP) can prove to be a much better business vehicle than a regular partnership. Partnerships are affected by personal liabilities, and LLPs remove excessive regulations of the Indian Partnership Act, 1932.
Here are the major reasons why people prefer the structure of an LLP for their business:
- Limited Liability
- Separate Legal Entity
- Exemption from audit subject to conditions
- Less compliances cost as compared to a Private Limited company
2. CONVERT A SOLE PROPRIETORSHIP TO PRIVATE LIMITED COMPANY
In India, many entrepreneurs initially start their business as a sole proprietorship because of its low compliance requirements. After certain years, the business will boom and the revenues involved will become more.
Now, in order to limit the liability and to detach the bank accounts and tax filing of an individual, a sole proprietorship firm will be converted to a private limited company.
Registering a company offers many benefits. A registered company increases the authenticity of your business. It helps your business:
- Limited liability and Separate Legal entity
- Attract more customers due to recognition and credibility
- Attracts funding from investors being a reliable platform
- Greater long term stability and transparency
- Increased potential for growth and success
