If you are planning to convert your Limited Liability Partnership LLP to Private Limited Company in India, you will find here all the relevant information like procedure, documents required, eligibility requirements and other details.
Private Limited Companies are seen to be the most popular business structure in India and rightly so as the chances of raising equity capital raises by a huge percentage along with better growth and development. The opportunities are much better with a Private Limited Company as compared to Limited Liability Partnership LLP in India.
Furthermore, in case of a Private Limited Company, the FDI does not require any approval for the conversion as it can be done directly, unlike LLP. In a situation where the company’s promoters and owners are Foreign Nationals or NRIs, a conversion to incorporate a Private Limited Company from a pre existing LLP is a very smart business decision.
Reasons why you should consider for conversion of Limited Liability Partnership LLP to Private Limited Company in India
- Raising Funds becomes easier – With Private Limited Companies, the criteria of credibility and legitimacy gets fulfilled as it has an elaborate registration process and consequentially, raising funds from funding giants becomes easier. Additionally, the private limited company also has many ways of raising funds such as private equity, ESOP, etc.
- Independent legal entity – The separate legal existence of a Private Limited Company helps both the separate management and owners to focus on different aspects of growth.
- ESOPs attract the employees – Private Limited Companies are allowed to offer stock ownership and ESOP plans and it is seen that it attracts the employees because these plans become a perk for them when they work in the company and know everything about the plans first hand.
- Limited Liability – The personal assets of the owners of a Private limited Company remain untouched in case of a crisis as their liability is limited to paying for the capital they subscribe to
Minimum Capital Requirement for conversion of Limited Liability Partnership LLP to Private Limited Company in India
- Minimum authorised capital of Rs. 1 lakh at the time of registration.
- Each shareholder has to subscribe at one share for registration.
- Sufficient amount for running the business has to be introduced.
List of Required Documents for conversion of Limited Liability Partnership to a Private Limited Company in India
- PAN Card, Aadhar Card, Voter ID Card of all the directors and shareholders.
- Passport (in case of foreign nationals or NRIs)
- Passport size photos of all the directors and shareholders.
- Telephone/Electricity Bill of all the shareholders and directors.
- Latest bank account statement of all the directors and shareholders.
- Electricity/Water bill of the registered place of business.
- NOC from the owner of the registered place of business (in case of rented property)
- Rent Agreement of the registered place of business (in case of rented property)
- Copy of latest income tax return filed by the LLP.
Please note that in case of directors that are Foreign Nationals and NRIs, all the above mentioned documents have to be notarized.
Procedure for the Conversion of Limited Liability Partnership LLP to Private Limited Company in India with Seedup.in
- Fill the forms – The first and foremost step requires you to fill out the questionnaires and submit the required documents.
- Application for DSC- The next step is to apply and procure the Digital Signature Certificates for all the directors.
- Reservation for Name – The next step is checking for the availability of the name and then reserving it under RUN.
- Drafting of MoA and AoA – The next step is preparing all the documents by drafting the MoA, AoA along with other documents and then getting them notarized.
- Application for Company Registration – After arranging for all the documents, we have to file an application for the company registration
- Application for DIN, PAN and TAN – After the incorporation of the Private Limited Company, applications for the allotment of the DIN, PAN and TAN have to be filed.
This entire procedure with Seedup.in should take around 12- 15 working days.