{"id":869,"date":"2025-07-30T00:00:00","date_gmt":"2025-07-30T00:00:00","guid":{"rendered":"https:\/\/rize.blog.razorpay.in\/how-to-convert-a-partnership-firm-into-an-llp-in-india\/"},"modified":"2026-06-23T14:53:51","modified_gmt":"2026-06-23T14:53:51","slug":"how-to-convert-a-partnership-firm-into-an-llp-in-india","status":"publish","type":"post","link":"https:\/\/razorpay.com\/rize\/blogs\/how-to-convert-a-partnership-firm-into-an-llp-in-india\/","title":{"rendered":"How to Convert a Partnership Firm into an LLP in India"},"content":{"rendered":"<h2><strong>Partnership vs LLP<\/strong><\/h2>\n<div data-rt-embed-type='true'>\n<table>\n<thead>\n<tr>\n<th>Income Range<\/th>\n<th>Tax Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to \u20b93 lakh<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<tr>\n<td>\u20b93 lakh \u2013 \u20b96 lakh<\/td>\n<td>5%<\/td>\n<\/tr>\n<tr>\n<td>\u20b96 lakh \u2013 \u20b99 lakh<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>\u20b99 lakh \u2013 \u20b912 lakh<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>\u20b912 lakh \u2013 \u20b915 lakh<\/td>\n<td>20%<\/td>\n<\/tr>\n<tr>\n<td>Above \u20b915 lakh<\/td>\n<td>30%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><strong>Why Choose LLP Instead of a Partnership Firm?<\/strong><\/h2>\n<ul>\n<li><strong>Limited Liability:<\/strong> Unlike partnership firms, LLPs protect the personal assets of partners.<\/li>\n<li><strong>Separate Legal Identity:<\/strong> An LLP can own property, sue, and be sued in its own name.<\/li>\n<li><strong>Ease of Ownership Transfer:<\/strong> Ownership and management can be easily transferred.<\/li>\n<li><strong>Tax Benefits:<\/strong> LLPs are taxed as partnerships but enjoy exemption from dividend distribution tax (DDT).<\/li>\n<li><strong>Investor Friendly:<\/strong> LLPs are seen as more credible and structured by banks and investors.<\/li>\n<li><strong>Perpetual Existence:<\/strong> Business continuity is not affected by partner exit or death.<\/li>\n<\/ul>\n<h2><strong>Requirements for Converting a Partnership Firm into an LLP<\/strong><\/h2>\n<ol>\n<li>The partnership firm must be registered under the Indian Partnership Act, 1932.<\/li>\n<li>All partners must consent to the conversion.<\/li>\n<li>There should be no security interest (like a charge) on firm assets at the time of conversion.<\/li>\n<li>All partners of the firm must become partners of the LLP.<\/li>\n<li><a href=\"https:\/\/razorpay.com\/rize\/blogs\/digital-signature-certificate-dsc\/\">Digital Signature Certificates (DSC)<\/a> and Director Identification Numbers (DIN) for designated partners are mandatory.<\/li>\n<li>The firm must comply with all necessary clearances and approvals (if any) before the conversion.<\/li>\n<\/ol>\n<p><strong><em>Ready to upgrade your partnership? Start your <\/em><\/strong><a href=\"https:\/\/razorpay.com\/rize\/company-registration\/llp\"><strong><em>LLP registration<\/em><\/strong><\/a><strong><em> with expert assistance today.<\/em><\/strong><\/p>\n<h2><strong>How do you convert a partnership firm into an LLP?<\/strong><\/h2>\n<p>Here\u2019s the step-by-step process:<\/p>\n<h3><strong>Step 1: Obtain DSC &amp; DIN<\/strong><\/h3>\n<p>At least two designated partners need DSCs, which can be applied for in the FiLLiP form.<\/p>\n<h3><strong>Step 2: Name Reservation (RUN\u2013LLP)<\/strong><\/h3>\n<p>To reserve the name, file the \u201cReserve Unique Name\u2013LLP\u201d (RUN\u2013LLP) form with the MCA. It should ideally be the same as the partnership firm\u2019s name.<\/p>\n<h3><strong>Step 3: File Form FiLLiP<\/strong><\/h3>\n<p>File Form FiLLiP (<a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/llp-form-fillip\">Form for Incorporation of LLP<\/a>) with all partner details, registered address, and capital structure. This form can also be used to apply for DIN.<\/p>\n<h3><strong>Step 4: File LLP Form 17 (Conversion Form)<\/strong><\/h3>\n<p>This is the key form for conversion. It must be filed with all supporting documents (listed below) and submitted to the MCA.<\/p>\n<h3><strong>Step 5: File LLP Form 2<\/strong><\/h3>\n<p>Submit the incorporation document and subscriber details, including the proposed <a href=\"https:\/\/razorpay.com\/rize\/company-registration\/document-required\/llp-agreement\">LLP Agreement<\/a>.<\/p>\n<h3><strong>Step 6: Certificate of Incorporation<\/strong><\/h3>\n<p>Once all forms are verified and approved, the Registrar of Companies (RoC) will issue a <strong>Certificate of Incorporation<\/strong> for the LLP.<\/p>\n<h2><strong>Documents to be Filed<\/strong><\/h2>\n<ul>\n<li>Copy of the <a href=\"https:\/\/razorpay.com\/rize\/blogs\/partnership-deed\/\">partnership deed<\/a><\/li>\n<li>Statement of assets and liabilities (certified by a CA)<\/li>\n<li>Latest Income Tax Return acknowledgement<\/li>\n<li>Consent letters from all partners<\/li>\n<li>NOC from creditors, if applicable<\/li>\n<li>Proof of registered office (rent agreement + utility bill)<\/li>\n<li>Identity and address proof of all partners<\/li>\n<li>Copy of resolution (if applicable)<\/li>\n<li>LLP Agreement (after incorporation)<\/li>\n<\/ul>\n<h2><strong>Registration<\/strong><\/h2>\n<p>Registration is completed once the Certificate of Incorporation is issued by the RoC under the LLP Act, 2008. This certificate legally establishes the LLP as a distinct entity.<\/p>\n<p>The firm must also:<\/p>\n<ul>\n<li>Apply for <strong>PAN &amp; TAN<\/strong> in the LLP\u2019s name.<\/li>\n<li>Update bank accounts and register under GST, Shops &amp; Establishment, etc.<\/li>\n<li>File Form 3 with the MCA within 30 days to register the LLP Agreement.<\/li>\n<\/ul>\n<p>Post-registration:<\/p>\n<ul>\n<li>The original partnership firm is <strong>deemed dissolved<\/strong>.<\/li>\n<li>All <strong>assets, liabilities, obligations, and rights<\/strong> of the firm get transferred to the LLP.<\/li>\n<li>All contracts and agreements entered into by the partnership firm are considered valid under the LLP.<\/li>\n<li>Business continuity is maintained under the new structure.<\/li>\n<\/ul>\n<h2><strong>Partners&#8217; Liability Before Conversion<\/strong><\/h2>\n<p>It\u2019s important to note:<\/p>\n<ul>\n<li><strong>Partners remain personally liable<\/strong> for all firm obligations and liabilities incurred before conversion.<\/li>\n<li>The LLP is not discharged from any previous liability just because of the conversion.\n<\/li>\n<li>Creditors can enforce pre-conversion obligations against the LLP or partners individually, depending on the terms.<\/li>\n<\/ul>\n<h2><strong>LLP Form No. 17<\/strong><\/h2>\n<p>LLP Form 17 is an important conversion form to be submitted during the process. It includes:<\/p>\n<ul>\n<li>Declaration by partners<\/li>\n<li>Statement of assets and liabilities<\/li>\n<li>Consent of all partners<\/li>\n<li>Details of all secured creditors and their NOC<\/li>\n<li>Copy of the latest ITR<\/li>\n<li>Copy of the partnership deed<\/li>\n<\/ul>\n<p>The form must be digitally signed and submitted with a prescribed fee.<\/p>\n<h3><strong>Part A: Application<\/strong><\/h3>\n<ul>\n<li>Name and registration details of the existing firm<\/li>\n<li>Proposed name of the LLP<\/li>\n<li>Details of all partners (name, PAN, address)<\/li>\n<li>Statement of consent from partners<\/li>\n<li>Statement of financial position of the firm<\/li>\n<\/ul>\n<h3><strong>Part B: Statement<\/strong><\/h3>\n<ul>\n<li>Statement confirming that the partners will be part of the LLP<\/li>\n<li>Declaration that all regulatory and tax obligations have been complied with<\/li>\n<li>Acknowledgement of previous liabilities<\/li>\n<\/ul>\n<h3><strong>Attachments<\/strong><\/h3>\n<ul>\n<li>Consent letters from all partners<\/li>\n<li>NOC from creditors<\/li>\n<li>Copy of PAN and Aadhaar of partners<\/li>\n<li>Copy of the partnership deed<\/li>\n<li>Digital signatures of partners<\/li>\n<li>Latest IT return<\/li>\n<li>Rental agreement and utility bill for registered office<\/li>\n<li>LLP Agreement (to be filed within 30 days of incorporation)<\/li>\n<\/ul>\n<h2><strong>Frequently Asked Questions (FAQs)<\/strong><\/h2>\n<p>\u200d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Looking to convert your partnership into an LLP? Learn the complete process, legal requirements, and benefits of switching to a Limited Liability Partnership in India.<\/p>\n","protected":false},"author":1,"featured_media":870,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-869","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\/869","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=869"}],"version-history":[{"count":2,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/869\/revisions"}],"predecessor-version":[{"id":1511,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/posts\/869\/revisions\/1511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media\/870"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/media?parent=869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/categories?post=869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/rize\/blogs\/wp-json\/wp\/v2\/tags?post=869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}