{"id":783,"date":"2025-05-29T00:00:00","date_gmt":"2025-05-29T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/conversion-of-privated-limited-company-into-llp\/"},"modified":"1970-01-01T00:00:00","modified_gmt":"1970-01-01T00:00:00","slug":"conversion-of-privated-limited-company-into-llp","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/conversion-of-privated-limited-company-into-llp\/","title":{"rendered":"Conversion of Private Limited Company into LLP &#8211; Complete Guide"},"content":{"rendered":"<h2>Documents Required for Conversion of Company into LLP<\/h2>\n<p>Below, we\u2019ve outlined the key documents required to make the conversion process smooth and efficient.<\/p>\n<h3><strong>1. Documents for Directors\/Partners<\/strong><\/h3>\n<ul>\n<li>PAN Card (self-attested).<\/li>\n<li>Identity Proof: Aadhaar Card, Passport, or Voter ID (self-attested).<\/li>\n<li>Address Proof: Latest utility bill, bank statement, or rental agreement (self-attested).<\/li>\n<li><a href=\"https:\/\/razorpay.com\/rize\/blogs\/digital-signature-certificate-dsc\/\" target=\"_blank\">Digital Signature Certificate<\/a> (DSC) for at least one designated partner.<\/li>\n<\/ul>\n<h3><strong>2. Documents for the Company<\/strong><\/h3>\n<ul>\n<li>Incorporation Certificate of the Private Limited Company.<\/li>\n<li><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/moa\" target=\"_blank\">Memorandum of Association<\/a> (MoA) and <a href=\"https:\/\/razorpay.com\/rize\/blogs\/articles-of-association\/\" target=\"_blank\">Articles of Association<\/a> (AoA).<\/li>\n<li>Latest financial statements of the company.<\/li>\n<li>Income tax returns for the previous three years.<\/li>\n<\/ul>\n<h3><strong>3. Other Requirements<\/strong><\/h3>\n<ul>\n<li>No Objection Certificate (NOC) from creditors.<\/li>\n<li>Consent from shareholders for the conversion.<\/li>\n<li>Approval or clearance certificates from regulatory bodies, if applicable.<\/li>\n<\/ul>\n<h2>Eligibility Criteria for Conversion of Company into LLP<\/h2>\n<p>Setting up an NGO provides individuals and groups with a structured platform to:<\/p>\n<ol>\n<li>The company should not have secured debts or must obtain the consent of secured creditors for the conversion.<\/li>\n<li>All shareholders of the company must agree to become partners in the LLP.<\/li>\n<li>The company must comply with the provisions of the Companies Act of 2013 and the LLP Act of 2008.<\/li>\n<li>There should be no pending legal proceedings against the company.<\/li>\n<li>The company must not be engaged in certain restricted sectors under law.<\/li>\n<\/ol>\n<p><strong><em>Start your entrepreneurial journey with guided <\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/llp\/\"><strong><em>llp incorporation<\/em><\/strong><\/a><strong><em> services with Razorpay Rize.<\/em><\/strong><\/p>\n<h2>Procedure for Conversion of Private Limited Company to Limited Liability Partnership (LLP)<\/h2>\n<h3><strong>Step 1: Obtain Board Approval<\/strong><\/h3>\n<ul>\n<li>Convene a board meeting to pass a resolution approving the company&#8217;s conversion into an LLP.<\/li>\n<li>Authorise directors to file necessary applications and documents with the <a href=\"https:\/\/razorpay.com\/rize\/blogs\/what-is-roc-filing\/\" target=\"_blank\">Registrar of Companies<\/a> (RoC).<\/li>\n<\/ul>\n<h3><strong>Step 2: Apply for Name Reservation<\/strong><\/h3>\n<ul>\n<li>File &#8220;RUN-LLP&#8221; (Reserve Unique Name for LLP) to reserve the name of the proposed LLP.<\/li>\n<li>Ensure that the name is unique and complies with naming guidelines.<\/li>\n<\/ul>\n<h3><strong>Step 3: File Form FiLLiP and Form 18<\/strong><\/h3>\n<ul>\n<li>Prepare and file the following forms with the Ministry of Corporate Affairs (MCA):\n<ul>\n<li><strong>Form FiLLiP:<\/strong> Incorporation form for the LLP.<\/li>\n<li><strong>Form 18:<\/strong> Application and statement for converting a Private Limited Company into LLP.<\/li>\n<\/ul>\n<\/li>\n<li>Attach required documents, including incorporation certificate, resolution copy, and consent letters.<\/li>\n<\/ul>\n<h3><strong>Step 4: Verification and Approval<\/strong><\/h3>\n<ul>\n<li>The RoC reviews the application and verifies submitted documents. Any discrepancies must be addressed promptly.<\/li>\n<\/ul>\n<h3><strong>Step 5: Issuance of Certificate of Registration<\/strong><\/h3>\n<ul>\n<li>Upon approval, the RoC issues the Certificate of Registration for the LLP, signifying the completion of the conversion.<\/li>\n<\/ul>\n<h2>Fee Payable for Conversion of Company into LLP<\/h2>\n<h3><strong>Government Filing Fees<\/strong><\/h3>\n<ul>\n<li>Filing fees for Form FiLLiP and Form 18 (vary based on the company\u2019s authorised capital)<\/li>\n<li>Stamp duty on the <a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/llp-agreement\" target=\"_blank\">LLP Agreement<\/a> (varies by state).<\/li>\n<li>Notary and attestation charges, if applicable.<\/li>\n<\/ul>\n<h3><strong>Professional Service Charges<\/strong><\/h3>\n<ul>\n<li>Fees for professional services, including documentation, form filing, and legal consultation.<\/li>\n<\/ul>\n<h2>Certificate of Registration LLP<\/h2>\n<p>The Certificate of Registration is issued by the Registrar of Companies upon successful conversion. It serves as the legal proof of conversion and includes:<\/p>\n<ul>\n<li>LLP Identification Number (LLPIN).<\/li>\n<li>Date of registration and conversion.<\/li>\n<\/ul>\n<p>This certificate is essential for updating all statutory registrations and notifying stakeholders about the change in business structure.<\/p>\n<h2>Taxation on the Conversion of a Company into an LLP<\/h2>\n<p>The conversion of a Private Limited Company into an LLP has specific taxation implications:<\/p>\n<ol>\n<li><strong>Capital Gains Tax:<\/strong> Exempted under certain conditions as per the Income Tax Act.<\/li>\n<li><strong>Goods and Services Tax (GST):<\/strong> GST registrations must be migrated to the LLP.<\/li>\n<li><strong>Transfer of Assets and Liabilities:<\/strong> Tax neutrality applies if all conditions are met during the conversion.<\/li>\n<\/ol>\n<h2>Pursuant to the Income Tax Act<\/h2>\n<p>The Income Tax Act governs the conversion of companies into LLPs under Section 47(xiiib). Key provisions include:<\/p>\n<ul>\n<li>All company assets and liabilities must be transferred to the LLP.<\/li>\n<li>All shareholders must become partners in the LLP.<\/li>\n<li>The total turnover of the company in any of the previous three years must not exceed \u20b960 lakh.<\/li>\n<li>There must be no consideration other than the partner\u2019s capital contribution to the LLP.<\/li>\n<\/ul>\n<h2>Benefits under the Income Tax Act<\/h2>\n<p>Converting a company into an LLP offers several tax benefits:<\/p>\n<ol>\n<li><strong>Exemption under Section 47(xiiib):<\/strong> No capital gains tax on transferring assets and liabilities.<\/li>\n<li><strong>Carry Forward of Losses:<\/strong> Business losses and unabsorbed depreciation can be carried forward to the LLP.<\/li>\n<\/ol>\n<h2>Conclusion<\/h2>\n<p>The transition from a Private Limited Company to an LLP offers businesses a chance to rethink their structure and embrace greater flexibility. LLPs allow for easier decision-making, lower compliance costs, and better resource allocation\u2014all while retaining the benefits of limited liability. <\/p>\n<p>This makes it an ideal choice for businesses looking to streamline operations, whether they are startups, small firms, or professional partnerships.<\/p>\n<p><strong><em>Ready to <\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/private-limited\/\"><strong><em>register pvt ltd company<\/em><\/strong><\/a><strong><em>? Start the process in just a few clicks with Razorpay Rize.<br \/><\/em><\/strong><\/p>\n<h2>Frequently Asked Questions<\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to convert a Private Limited Company into an LLP in India. Explore the complete legal procedure, benefits, requirements, and step-by-step guide in 2025.<\/p>\n","protected":false},"author":1,"featured_media":784,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-783","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/comments?post=783"}],"version-history":[{"count":1,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/783\/revisions"}],"predecessor-version":[{"id":1211,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/783\/revisions\/1211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/784"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}