{"id":95,"date":"2018-11-02T07:51:03","date_gmt":"2018-11-02T07:51:03","guid":{"rendered":"https:\/\/www.earnlogic.in\/blog\/?p=95"},"modified":"2018-11-02T07:51:03","modified_gmt":"2018-11-02T07:51:03","slug":"conversion-private-limited-company-llp","status":"publish","type":"post","link":"https:\/\/www.earnlogic.in\/blog\/conversion-private-limited-company-llp\/","title":{"rendered":"Conversion of private limited company into LLP"},"content":{"rendered":"<p>Conversion of a <a href=\"https:\/\/www.earnlogic.in\/private-limited-company-registration-bangalore\">Private Limited company<\/a> into a LLP implies an exchange of the property, resources , interests , rights, benefits, liabilities, commitments and the endeavour of the privately owned business to the LLP as per the Third schedule.<\/p>\n<h2><strong>Qualification for the conversion of a private limited company into a LLP:<\/strong><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-97 aligncenter\" src=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-to-llp-300x151.png\" alt=\"conversion of private limited company into LLP\" width=\"300\" height=\"151\" srcset=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-to-llp-300x151.png 300w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-to-llp.png 602w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a> Act gives that an organization may apply to change over into a LLP as per this Schedule if and just if,<\/li>\n<li style=\"text-align: justify;\">a)there is no security enthusiasm for its advantages subsisting or in power at the season of use and<\/li>\n<li style=\"text-align: justify;\">b)the accomplices of the LLP to which it changes over include every one of the investors of the organization and nobody else.<\/li>\n<li style=\"text-align: justify;\">The Third schedule of the<a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\"> LLP<\/a> Act provides that upon such conversion of the company, its shareholders , the LLP and the partners of that LLP shall be bound by the provisions of the Third Schedule that are applicable to them.<\/li>\n<\/ul>\n<h3><strong>Procedure for conversion:<\/strong><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-98 aligncenter\" src=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-300x152.jpg\" alt=\"\" width=\"300\" height=\"152\" srcset=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-300x152.jpg 300w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-768x388.jpg 768w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt-1024x517.jpg 1024w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/pvt.jpg 1890w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the LLP Act provides that a <a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\">company<\/a> may apply to convert into an LLP by filing with the Registrar:<\/li>\n<li style=\"text-align: justify;\">a)a statement by all its shareholders in such form and manner to be accompanied by such fees as the Central Government may prescribe , containing the following particulars, namely:<\/li>\n<li style=\"text-align: justify;\">i)a statement by all its shareholders in such form and manner to be accompanied by such fees as the Central Government may prescribe, containing the following particulars, namely:<\/li>\n<li style=\"text-align: justify;\">i)the name and registration number of the company;<\/li>\n<li style=\"text-align: justify;\">ii)the date on which the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\">company<\/a> was incorporated;<\/li>\n<li style=\"text-align: justify;\">b)incorporation document and statement referred to in Section 11.<\/li>\n<\/ul>\n<h4><strong>Incorporation document:<\/strong><\/h4>\n<ul>\n<li style=\"text-align: justify;\">To reiterate, the incorporation document shall, state the following information:<\/li>\n<li style=\"text-align: justify;\">a)the name of the LLP;<\/li>\n<li style=\"text-align: justify;\">b)State in which the registered office of the LLP is to be situated;<\/li>\n<li style=\"text-align: justify;\">c)the address of the registered office of the LLP;<\/li>\n<li style=\"text-align: justify;\">d)business to be carried on by the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a>;<\/li>\n<li style=\"text-align: justify;\">e)summary of partners\/designated partners(i.e., number of partners, number of designated partners, number of designated partners resident in India);<\/li>\n<li style=\"text-align: justify;\">f)number of individuals as partners and their details;<\/li>\n<li style=\"text-align: justify;\">g)number of bodies corporate as partners and their details;<\/li>\n<li style=\"text-align: justify;\">h)total monetary value of contribution by partners in the LLP.<\/li>\n<li style=\"text-align: justify;\">Statement under Section 11:<\/li>\n<li style=\"text-align: justify;\">In accordance with Section 11(1)(c) of the LLP Act, there shall be filed along with the incorporation document, a statement in the prescribed form, to the effect that all the requirements of the<a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\"> LLP<\/a> Act and the rules made there under have been compiled with, in respect of incorporation and matters precedent and incidental thereto. Such statement shall be made by the following persons:<\/li>\n<li style=\"text-align: justify;\">an advocate, or a Company Secretary or a Chartered Accountant or a cost accountant, who is engaged in the formation of the LLP, and<\/li>\n<li style=\"text-align: justify;\">anyone who has subscribed his name to the incorporation document.<\/li>\n<\/ul>\n<h4><strong>Issue of the certificate of registration<\/strong><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-78 aligncenter\" src=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/info-1-300x113.jpg\" alt=\"\" width=\"318\" height=\"120\" srcset=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/info-1-300x113.jpg 300w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/info-1-768x288.jpg 768w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/info-1-1024x384.jpg 1024w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/info-1.jpg 1200w\" sizes=\"auto, (max-width: 318px) 100vw, 318px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\">Section 58(1) of the LLP Act gives that the Registrar, on\u00a0fulfilling\u00a0that a firm , <a href=\"https:\/\/www.earnlogic.in\/private-limited-company-registration-bangalore\">private company<\/a> or an unlisted public\u00a0company, as the case may be, has compiled with the\u00a0arrangements\u00a0of the\u00a0Moment\u00a0Plan, the Third\u00a0Plan\u00a0or the Fourth\u00a0Plan, as the case may be,\u00a0should, subject to the\u00a0arrangements\u00a0of the LLP Act and the rules made there under, register\u00a0the\u00a0reports\u00a0submitted under\u00a0such\u00a0plan\u00a0and issue a certificate of\u00a0 <a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\">company registration<\/a>\u00a0in such\u00a0frame\u00a0as the\u00a0Registrar\u00a0may\u00a0decide\u00a0expressing\u00a0that the LLP is, on and from the date\u00a0indicated\u00a0within the\u00a0certificate, registered under\u00a0the LLP Act. The third\u00a0plan\u00a0of the LLP Act\u00a0gives\u00a0that on\u00a0getting\u00a0the documents\u00a0referred\u00a0to, the\u00a0Registrar\u00a0might, subject to the\u00a0provisions\u00a0of the LLP Act and the rules made there under, register the documents.<\/li>\n<li style=\"text-align: justify;\">Sub-rule (1) of Rule\u00a0 32 of the LLP Rules gives that the Registrar should, on conversion of a firm, private company or an unlisted public company into LLP, issue a certificate of registration under his seal in Frame 19.<\/li>\n<li style=\"text-align: justify;\">Sub rule\u00a0 (2) of Rule\u00a0 39 of the LLP Rules gives that the Registrar should, on transformation of any <a href=\"https:\/\/www.earnlogic.in\/private-limited-company-registration-bangalore\">private company<\/a> into an LLP, issue a certificate of registration under his seal in Form 19.<\/li>\n<\/ul>\n<h3><strong>Intimation by the LLP to the Registrar of Companies<\/strong><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-99 aligncenter\" src=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/llp.jpg\" alt=\"\" width=\"275\" height=\"183\" \/><\/h3>\n<ul>\n<li style=\"text-align: justify;\">In terms of provision to Section 58(1) of the LLP Act, the LLP shall, within 15 days of the date of <a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\">company registration<\/a>, inform the concerned Registrar of Firms or Registrar of companies as the case may be, with which it was registered under the provisions of the Indian Partnership Act, 1932 or the Companies Act, 1956, as the case may be , about the conversion and of the particulars of the LLP in such form and manner as may be prescribed. In provision to the Third Schedule , the LLP shall , within 15 days of the date of registration, inform the concerned Registrar of Companies with which it was registered under the provisions of the Companies Act,\u00a0 1956 about the conversion and of the particulars of the LLP in such form and manner as the Central Government may prescribe.<\/li>\n<li style=\"text-align: justify;\">Rule 33 of the LLP rules provides that for the purposes of the provisions to sub-section(1), where the firm, <a href=\"https:\/\/www.earnlogic.in\/private-limited-company-registration-bangalore\">private company<\/a> or unlisted public company has been converted into an LLP, an intimation of such conversion to the concerned Registrar of Firms or Registrar of Companies, as the case may be, shall be given in Form 14 within 15 days of the date of registration of the LLP.<\/li>\n<li style=\"text-align: justify;\">Rule 39 of the LLP rules state that the LLP shall inform the concerned Registrar of Companies about the conversion of a private company into an LLP.<\/li>\n<\/ul>\n<h4><strong>Effect of conversion:<\/strong><\/h4>\n<ul>\n<li style=\"text-align: justify;\">Section 58(2) of the LLP Act provides that upon such conversion, the partners of the firm, the shareholders of a <a href=\"https:\/\/www.earnlogic.in\/private-limited-company-registration-bangalore\">private limited company<\/a> or unlisted public company , as the case may be, the LLP to which such firm or company has converted, and the partners of the LLP shall be bound by the provisions of the 2nd Schedule, as the case may be, applicable to them.<\/li>\n<li style=\"text-align: justify;\">Section 58(3) of the LLP Act provides that upon such conversion, on and from the date of certificate of registration, the effects of the conversion shall be such as specified in the 2nd schedule, the 3rd schedule or the 4th schedule , as the case may be.<\/li>\n<\/ul>\n<p><strong>Registrar may refuse to register:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">The third schedule of the LLP Act, nothing in this schedule shall be construed as to require the Registrar to register any <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a> if he is not satisfied with the particulars or other information furnished under the provisions of the LLP Act.<\/li>\n<li style=\"text-align: justify;\">An appeal may be made before the Tribunal in case of refusal of registration by the Registrar. However, until the Tribunal is constituted under the Companies Act, 1956, the appeal under this sub-paragraph may be made to the Company Law Board.<\/li>\n<li style=\"text-align: justify;\">Sub-rule(2) of Rule 32 of the LLP Rules provides that in the event the Registrar has refused the registration, the applicant firm or <a href=\"https:\/\/www.earnlogic.in\/private-limited-company-registration-bangalore\">private company<\/a> or unlisted public company, as the case\u00a0 may be, may apply to the Tribunal within\u00a0 60 days from the date of receipt of such intimation of refusal. However, until the Tribunal is constituted under the Companies Act, 1956, the application under sub rule (2) of Rule 32 may be made to the Company Law Board.<\/li>\n<\/ul>\n<h3><strong>Effect of registration:<\/strong><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-77 aligncenter\" src=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/reg-300x149.jpg\" alt=\"earnlogic\" width=\"300\" height=\"149\" srcset=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/reg-300x149.jpg 300w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/reg-768x382.jpg 768w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/10\/reg.jpg 825w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\">The LLP Act provides that not withstanding anything contained in any other law for the time being in force, on and from the date of\u00a0<a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\"> company registration<\/a> specified in the certificate of registration issued under the second schedule, the third schedule or the fourth schedule as the case may be:<\/li>\n<li style=\"text-align: justify;\">a)there shall be an LLP by the name specified in the certificate of registration registered under this Act;<\/li>\n<li style=\"text-align: justify;\">b)all tangible and intangible properties vested in the firm or the company , as the case may be, all the assets, interests , rights, privileges, liabilities, obligations relating to the firm or the company , as the case may be transferred to and shall vest in the LLP without further assurance, act or deed; and<\/li>\n<li style=\"text-align: justify;\">c)the firm or the company, as the case may be, shall be deemed to be dissolved or removed from the records of the Registrar of Firms or Registrar of Companies as the case may be,<\/li>\n<li style=\"text-align: justify;\">The third schedule of the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a> rules that on and from the date of registration specified in the certificate of registration issued:<\/li>\n<li style=\"text-align: justify;\">a)there shall be an LLP by the name specified in the certificate of registration registered under the \u00a0LLP Act;<\/li>\n<\/ul>\n<ol style=\"text-align: justify;\">\n<li>b) all tangible and intangible properties vested in the firm or the company , as the case may be, all the assets, interests , rights, privileges, liabilities, obligations relating to the company shall be transferred to and shall vest in the LLP without further assurance, act or deed; and<\/li>\n<\/ol>\n<ul>\n<li style=\"text-align: justify;\">c)The<a href=\"https:\/\/www.solubilis.in\"> company<\/a> , shall be deemed to be dissolved or removed from the records of the Registrar of Companies.<\/li>\n<\/ul>\n<h4><strong>Registration in relation to the property:<\/strong><\/h4>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a> Act provides that if any property, to which paragraph(6) applies , is registered with any authority , the LLP shall, as soon as practicable , after the date of registration, shall take all necessary steps as required by the relevant authority to notify the authority of the conversion and of the particulars of LLP in such form and manner as the authority may determine.<\/li>\n<\/ul>\n<p><strong>Pending procedures: <\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the LLP Act gives that all procedures by or against the company which are pending under the before any court, Tribunal or authority on the date of registration might be proceeded, finished and upheld by or against the LLP. At the end of the day, all procedures by or against the recent <a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\">company<\/a> will stand vested into the LLP, as it seems to be.<\/li>\n<\/ul>\n<p><strong>Continuance of conviction, ruling , order or judgement:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the LLP Act provides that any conviction , ruling, order or judgement of any Court, Tribunal or other authority in favour of or against the company may be enforced by or against the LLP.<\/li>\n<\/ul>\n<h4><strong>Existing agreements:<\/strong><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-100 aligncenter\" src=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/llp3-300x220.jpg\" alt=\"\" width=\"300\" height=\"220\" srcset=\"https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/llp3-300x220.jpg 300w, https:\/\/www.earnlogic.in\/blog\/wp-content\/uploads\/2018\/11\/llp3.jpg 750w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a> Act provides that every agreement to which the company was a party immediately before the date of registration , whether or not of such nature that the rights and liabilities there under could be assigned, shall have effect as from that date as if:<\/li>\n<li style=\"text-align: justify;\">a)the LLP were a party to such an agreement instead of the company; and<\/li>\n<li style=\"text-align: justify;\">b)for any reference to the company, there were submitted in respect of anything to be done on or after the date of registration a reference to the LLP.<\/li>\n<\/ul>\n<h5><strong>Existing contracts:<\/strong><\/h5>\n<ul>\n<li style=\"text-align: justify;\">The Third Schedule of the LLP Act provides that all deeds, contracts, schemes, bonds, agreements, applications, instruments and arrangements subsisting immediately before the date of registration relating to the company or to which the company is a party shall continue in force on and after the date as if they relate to the <a href=\"https:\/\/www.earnlogic.in\/bangalore\/llp-registration-bangalore\">LLP<\/a> and shall be enforceable by or against the LLP as if the LLP were named therein or where a party thereto instead of the company.<\/li>\n<\/ul>\n<p><strong>Continuation of employment<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">Third Schedule of the LLP Act gives that\u00a0 each agreement of employment to which passage 10 applies will proceed in power on and after the date of registration as though the <a href=\"https:\/\/www.solubilis.in\/chennai\/llp-registration-chennai.php\">LLP<\/a> were the employer there under rather than the company.<\/li>\n<\/ul>\n<p><strong>Existing appointment , authority or power <\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\">Third Schedule of the LLP Act gives that each appointment of the company in any job or capacity which is in power quickly before the date of <a href=\"https:\/\/www.earnlogic.in\/bangalore\/company-registration-bangalore\">company registration<\/a> will produce results and work from that date as though the LLP were selected. The Act likewise gives that any authority or power gave on the company which is in power instantly before the date of registration will produce results and work from that date as though it were given on the LLP.<\/li>\n<li style=\"text-align: justify;\">The provisions of the rules shall apply to any approval, permit or license issued to the company under any other Act which is in force immediately before the date of registration of the LLP, subject to the provisions of such other Act under which such approval, permit or license has been issued.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Earnlogic, one of the leading consultants of company registration , can help you in converting your private limited company into a LLP. For more details visit <a href=\"https:\/\/www.earnlogic.in\/\"> earnlogic<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Conversion of a Private Limited company into a LLP implies an exchange of the property, resources , interests , rights, benefits, liabilities, commitments and the endeavour of the privately owned business to the LLP as per the Third schedule. Qualification <a href=\"https:\/\/www.earnlogic.in\/blog\/conversion-private-limited-company-llp\/\" class=\"read-more\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-95","post","type-post","status-publish","format-standard","hentry","category-private"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\r\n<title>Tax Return Filing in Bangalore<\/title>\r\n<meta name=\"description\" content=\"This gives an idea of conversion of a private limited company into a Limited Liability Partnership and what are its procedures.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" 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