Private Limited to LLP
Private Limited to LLP
Some companies eventually prefer a simpler, more partnership-driven model instead of a fully corporate structure. Converting a Private Limited Company into an LLP helps reduce compliance load, offer tax efficiency and allow owners more operational flexibility. The shift needs careful planning because the entire shareholding structure changes and all assets, liabilities and registrations must be transferred correctly.
What We Assist With
• Eligibility check and guidance on whether LLP is the right route
• Drafting Board and shareholder approvals
• Filing conversion forms with MCA (RUN-LLP, FiLLiP and others)
• Drafting the LLP Agreement and partner contribution structure
• Transferring assets, liabilities, licenses and GST/PAN registrations
• Updating vendor contracts, bank accounts and statutory records
• Ensuring smooth transition with no disruption to ongoing business
• Post-conversion compliance support for partners and the LLP
Why Companies Choose to Convert
• Lower compliance and cost of maintenance
• More flexible profit-sharing and management structure
• Tax efficiency in certain cases
• Works well for closely-held, owner-managed businesses
• Simpler decision-making without heavy corporate formalities
Frequently Asked Questions
Only if all shareholders agree to become partners in the LLP and the company has no outstanding charges or unsecured creditors without their consent.
No. It’s a conversion. The business continues under the LLP structure, but with a new legal identity and a partnership-style framework.
RUN-LLP for name approval, FiLLiP for incorporation, and the LLP conversion forms with supporting documents like shareholder approvals and statements of assets and liabilities.
Everything—assets, liabilities, contracts, licenses—moves to the LLP as a whole. Proper documentation ensures continuity.
Yes. All shareholders must become partners of the LLP in the same proportion unless mutually decided otherwise.