Convert LLP to Private Limited Company

Starts from ₹ 23,499 (All Inclusive)

Convert LLP to Private Limited Company

Get Started
Get Started

Conversion of LLP into private limited company

In India, private companies are one of the most common forms of business structure. They provide higher chances of growth, development and are best for raising equity capital which is not possible in case of LLP. LLP structure is not suitable if the owners require venture capitalist or private equity investors to invest in their company as they would choose to invest in a private limited company and not a partnership or LLP. The second reason for conversion is the that the FDI in case of a private limited company does not require any approval it can be done directly unlike in an LLP. Especially if the promoters or owners of the company are NRI’s or a foreigner incorporating a private limited company is a preferable choice over an LLP. Hence conversion is mandatory if the above-mentioned requirements need to be fulfilled.

Benefits of converting LLP into limited company

Documents required for conversion into Private Company

Have questions? Don’t worry, we are here to help!
Call us at 1800 313 4151 or Email us: support@legalwiz.in

Formulation of Company Name

Learn more

Convert into company in 3 Easy Steps

*Subject to Government processing time

Process to convert LLP to pvt ltd

Compare Related Services

Compare different business structures to choose the right entity type

Private Limited CompanyOne Person CompanyLimited Liability PartnershipPartnership FirmProprietorship Firm
ActCompanies Act, 2013Companies Act, 2013Limited Liability Partnership Act, 2008Indian Partnership Act, 1932No specified Act
Registration RequirementMandatoryMandatoryMandatoryOptionalNo
Registration under the Act is mandatory to set up business as Private Limited CompanyRegistration under the Act is mandatory to set up business as One Person CompanyRegistration under the Act is mandatory to set up business as Limited Liability PartnershipBoth registered and unregistered partnerships are legal, but registered entity is preferredThere is no registration criteria prescribed. But registration to establish legal identity is recommended
Number of members2 – 200Only 12 – Unlimited2 – 50Only 1
Requires minimum 2 and not more than 200 shareholdersOnly an individual being Indian resident can be the shareholderNo bar to maximum number of partners, but minimum 2 Designated Partners are requiredIt is formed with minimum 2 partners, but not exceeding 50The proprietor is the only owner of the firm
Separate Legal EntityYesYesYesNoNo
Private Company is separate entity and can own assets in its nameOPC is separate entity and can own assets in its nameLLP is separate entity from partners and can own assets in its namePartnership firm does not have any separate identity from its partnersProprietor and the business are same and not different
Liability ProtectionLimitedLimitedLimitedUnlimitedUnlimited
Liability of members is limited to the extent of unpaid value of shares subscribedLiability of member is limited to the extent of unpaid value of shares subscribedLiability of partners is limited to the capital amount agreed to introducePartners are jointly and severally liable to pay the debts of the Partnership FirmProprietor’s liability is to pay-off all debts and obligation of firm
Statutory AuditMandatoryMandatoryDependentNot mandatoryNot mandatory
Auditor must be appointed within 30 days of incorporationAuditor must be appointed within 30 days of incorporationApplicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 LakhStatutory audit not applicable. Tax audit may be applicable based on turnoverStatutory audit not applicable. Tax audit may be applicable based on turnover
Ownership TransferabilityShares can be transferred with consent to other ShareholdersNoYesNoNo
Shares can be transferred with consent to other ShareholdersShares are not transferable easilyOwnership can be changed with consent of other partnersOwnership is not transferable easily, clause of partnership deed should be referredFirm in no different from proprietor and so ownership is not transferable
Uninterrupted ExistenceYesYesYesNoNo
Change in members or director does not affect the existence of Private CompanyChange in members or director does not affect the existence of OPC.
The nominee will take place of member
Change in Partners or Designated Partners does not affect the existence of LLPChange in partner leads to dissolution or formation of another partnership firmDeath or insolvency of proprietor directly affects the firm
Foreign ParticipationAllowedNot AllowedAllowedNot AllowedNot Allowed
Foreign national are allowed to invest under the Automatic RouteMember, nominee and director must be Indian residentForeign nationals are allowed to subject to FDI GuidelinesForeign nationals are not allowed to be a partnerForeign Nationals cannot commence proprietorship business
Tax RatesModerateModerateHighHighLow
Tax rate applicable for small companies is reduced to 25%Tax rate applicable for small companies is reduced to 25%With tax rate of 30% on business profit, tax benefits to partners is highWith tax rate of 30% on business profit, tax benefits to partners is highTax rates of individual applied to Proprietorship Firm
Statutory CompliancesHighModerateModerateLessLess
Apart from Annual filings, it has to comply with various provision laid down, but less compared to public companyApart from Annual filing, compliance are less compared to Private CompanyAnnual filing and few event based filings are necessarySeparate ITR of partnership is filed, else there are no filing requirementNo compliances and no requirement to file separate ITR
Get StartedKnow MoreKnow MoreKnow MoreKnow More

Explore Conversion from LLP to Private Limited Company

Frequently Asked Questions

Once, the company is registered, it should follow below-mentioned requirements on priority:

  • Opening a current account of the company
  • Appointment of Statutory auditor
  • Deposit of paid-up capital mentioned while registration
  • Issue and allotment of shares

Maximum 3 (Three) DIN can be applied through SPICE form.
If the applicant wants to incorporation Company with more than 3 Directors and more than 3 persons don’t have DIN. In such situation applicant have to incorporate Company with 3 Directors and have to appoint new directors later on after incorporation.

While registration, minimum authorized capital of INR 1 Lakh should be provided. The requirement of minimum paid-up capital is eliminated as part of Government’s initiative to simplify business registration in India. However, each shareholder must subscribe at least 1 share for registration and amount sufficient to run business should be introduced.

In case of more than 7 partners in the LLP at the time of conversion into Company then Company have to file Scan copy of Physically prepared MOA & AOA and the company has to file 1. URC-1 and 2. INC-32.

Yes, at the time of Conversion LLP have to file “copies of the principal and all subsequent deeds including the latest deed” with the ROC in e-form URC-1.

Yes, if one of the directors is outside of India, it can be filed in an e copy format, no need of submitting a physical copy.

Yes, shares of Private Company are easily transferable among members of the company but for transferring the shares to a non-member, the share should be first offered to an existing member and if he refuses to purchase the same, the shares can be transferred to non-members.

Yes, a foreign national can be a director. For procuring DIN, details of a valid passport should be filled in form DIR-3 and a certified copy of same should be attached with DIN application. All supporting documents including photograph should be certified by the Indian Embassy or a notary in the home country of the applicant or by the Managing Director / CEO / Company Secretary of the company registered in India, in which applicant is a director. If a foreign director has a valid multiple-entry Indian visa or Person of Indian Origin card or Overseas Citizen of India card, then the attestation could also be done by Public Notary / Gazetted Officer in India or practicing CA / CS / CWA.

Yes, a private company can carry multiple businesses after conversion from the LLP, it does not have any restrictions.

More Question? A specialist is here to help

Call us at: 1800 313 4151 or Email us: support@legalwiz.in

happy customers

We take pride! Not in our work, but in your words.

Here’s what keeps us going strong.

Read all stories

Till date, it is a very good experience with the team, especially Ms. Pooja & Ms. Krishna done their jobs very nicely. Thanks to the entire team for their support.

Arup Modak
August, 2018

Really happy with your service, affordable price, and an excellent support. Best wishes team!

Gopiraj chandran
August, 2018

It was a pleasure to deal with Legalwiz team , I would definitely like to say that the team is efficient , client centric and professional , they made the entire process look so simple n easy . I would anytime in future will deal with Legalwiz and will definitely definitely recommend it without any hesitation to all my friends and in my business cirlce. Thanks team .. Thanks a lot Garvi

Smart Stitch
July, 2018

Overall I am satisfied with the services. Aushi and Juhi both are dedicated. thanks

Manoj Lala
July, 2018

Very good service

Abdul Bari
July, 2018

Will definitely work with your firm again!! Thank You Ms. Ayushi for your kind support!!

Urvi Shah
July, 2018

Very Good services. Bhagya dealt very nicely

Naveen Gupta
June, 2018

Very quick service for incorporation of the company. Fastest among other service providers in the country. Regards, Sambhaji

Sambhaji Kadam
June, 2018