Proprietorship to LLP

A Sole Proprietorship is an easy structure to start your entrepreneur journey, but it might create obstacles in your future growth. If you’re looking to add partners in your business to have more diversity in thoughts, but don’t want too much of disturbance, in the way of compliance, structure or cost, it is wise to switch to an LLP.

If you don’t want to take responsibility or liability for another partner's misconduct, incompetence or negligence and also want to limit your liabilities for the debt and losses. If you want to enjoy tax benefits, then LLP might be the best option to go with.

• Shields personal assets from business liability
• The LLP continues to exist even after the death of the Partner
• Separation of your business from your personal money
• A highly flexible management structure
• No Audit by a Chartered account if turnover is less than Rs.40 Lac
• No Audit if Capital contribution is less than 25 lacs

Requirements for Conversion are:

• Must have minimum 2 Shareholders for LLP Registration
• Must have Minimum 2 Directors
• DIN is mandatory for all Directors

Basic conditions for Conversion are:

All the assets and the liability of the Sole Proprietorship become the assets and the liability of the newly formed company.

Documents Required for converting a sole proprietorship to LLP:

• Copy of PAN Card of the Directors
• Passport size photograph of Directors
• Copy of Property papers (If owned property)
• Landlord NOC (Format will be provided)
• Copy of Aadhaar Card/ Voter identity card
• Copy of Rent agreement (If rented property)
• Electricity/ Water bill (Business Place)

Corpseed Procedure for Conversion:

Step 1:- Contact Corpseed team, provide necessary documents to initiate the conversion process.

Step 2:- We will assign a dedicated and skilled resource to process your request for conversion.

Step 3:- We will help you with Preliminary Documentation:

• Ascertaining document requirement and availability
• Preparation of documents
• The signing of the Incorporation documents by Promoters
• Submitting the Signed documents to ROC

Step 4:- We will verify your company name, apply for DSCs & DIN.

Step 5:- We will apply for Incorporation certification.

Step 6:- We will draft LLP Agreement, stamping it & file for Incorporation

Step 7:- Once your LLP is incorporated, we will send you all the documents and DSCs

Note:- The entire conversion process takes between 25-30 days and also depends upon documents provided by applicant and approval speed by the government.