1.why people initially choose LLP?
Section 3 of Limited Liability Partnership Act, 2008 defines Limited Liability Partnership as
Limited Liability Partnership to be body corporate-
1. An LLP is a corporate body incorporated under LLP Act, 2008, is a legal entity which separate legal entity from that of its partners;
2. It shall have perpetual succession;
3. Further, change in partner of Limited Liability Partnership shall not affect the rights or liabilities or the existence of the LLP.
So Based on the definition because of Limited Liability on partners so people choose for LLP.
2.why conversion of LLP to Company?
Despite of Many Advantages in LLP as when business gets perfectly established and becomes profit-making entity, he may wish to convert LLP into a Limited Company for inculcating equity or for the purpose of more growth.
3.How to convert LLP to Company?
I) Obtain Name Approval:-
First the LLP needs to obtain name approval from the Registrar of Companies (ROC) by submitting Reserve Unique Name (RUN) form, which is available in e-format.
II) Securing DSC and DIN:-
Secondly after obtaining name approval the applicant need to apply for DSC and DIN. After obtaining DSC and DIN the Applicant will become the director of the company.
III) Filing of Form URC-1:-
Further the LLP has to file Form URC-1 with all the required documents and details to the registrar of Companies. Please note that the details and documents provided should be complete , correct and accurate to the best of their Knowledge.
IV) Memorandum of Association & Articles of Association:-
*The link for Form URC-1: Click here
*The following Diagram helps to understand the process easily
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