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Easy Business Conversion
Conversion Of Sole Proprietor To LLP in Rajahmundry
Converting a sole proprietorship to a Limited Liability Partnership (LLP) offers numerous advantages, including limited liability, better credibility, and structured business operations.
Conversion Of Sole Proprietor To LLP in Rajahmundry
Fill in the details to upgrade your business entity
Proprietor to LLP
Complete the form below to get expert consultation.
Benefits of LLP
Why convert your Proprietorship into an LLP?
Limited Liability Protection
Protects the proprietor’s personal assets from business liabilities and risks.
Separate Legal Entity
LLP becomes an independent legal entity distinct from the proprietor.
Tax Efficiency
No dividend distribution tax and flexible profit sharing among partners.
Better Business Credibility
Improves trust with banks, vendors, and government authorities.
Simple 4-Step Process
1
Submit Proprietorship Details
Share proprietorship details, owner KYC, and proposed partner information.
2
Document & Compliance Review
Our experts verify assets, liabilities, licenses, and eligibility conditions.
3
LLP Registration Filing
We file LLP incorporation and conversion documents with the MCA.
LLP Successfully Registered
Receive Certificate of Incorporation and operate as an LLP.
Did You Know?
An LLP offers perpetual succession, meaning the business continues even if partners change.
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What is
Conversion Of Sole Proprietor To LLP in Rajahmundry ?
A strategic upgrade that provides legal protection, credibility, and scalability
while preserving operational flexibility.
Converting a sole proprietorship into a Limited Liability Partnership (LLP)
protects personal assets while enabling shared ownership, structured governance,
and perpetual succession.
The conversion registers the business under the LLP Act, 2008 and transfers
all assets, liabilities, and operations into a newly formed legal entity.
Why Convert a Proprietorship to an LLP?
As businesses grow, LLPs offer a stronger foundation for credibility,
funding, and long‑term expansion.
Enhanced Legal Recognition
LLPs are registered with MCA, increasing trust among clients,
investors, and authorities.
Business Expansion
Allows multiple partners, skill sharing, and collaborative growth.
Simplified Compliance
Fewer regulatory requirements compared to private limited companies.
Ideal for Professionals
Preferred by consultants, IT firms, legal professionals, and startups.
Better Funding Potential
LLPs attract banks, angel investors, and VCs more easily than proprietorships.
Proprietorship vs LLP
Choosing the right business structure is crucial. Below is a detailed comparison between
Proprietorship and Limited Liability Partnership (LLP)
based on key business factors.
Factor
Proprietorship
LLP (Limited Liability Partnership)
Legal Status
Not a separate legal entity; the owner and business are the same.
Separate legal entity registered under the LLP Act, 2008.
Liability
Unlimited liability — personal assets are at risk.
Limited liability protects partners’ personal assets.
Compliance Requirements
Minimal compliance; GST registration only if applicable.
Flat 30% tax rate; no Dividend Distribution Tax (DDT).
Fundraising & Investment
Limited funding options; less preferred by banks & investors.
Easier access to bank loans, investors & venture capital.
Business Continuity
Ends with owner’s death or closure decision.
Perpetual succession even if partners change.
Ownership & Management
Owned and controlled by a single individual.
Managed by two or more partners as per LLP agreement.
Best Suited For
Freelancers, small traders & solo entrepreneurs.
Growing businesses, startups & professional firms.
Eligibility & Requirements
Who Can Convert?
Legally Registered: Proprietorships with valid GST/License.
Financially Stable: No outstanding debts or with creditor approval.
Two+ Partners: Must add at least one partner for LLP.
Permitted Industries: Most sectors except Banking/Finance.
Legal Conditions
Unique Name: LLP Name approved by MCA.
DSC & DIN: Mandatory for all designated partners.
LLP Agreement: Filed within 30 days of incorporation.
Asset Transfer: Formal transfer of assets/liabilities.
Documents Required for
Conversion Of Sole Proprietor To LLP in Rajahmundry
Ensure a smooth and legally compliant conversion with the following essential documents.
PAN Card of Proprietor
Identity & tax registration proof
Aadhaar Card
Required for DSC & DIN
Registered Office Proof
Utility bill / rent agreement
NOC from Property Owner
If premises is rented
Digital Signature Certificate
Mandatory for MCA filings
Director Identification Number
For designated partners
LLP Agreement
Ownership & management structure
Assets & Liabilities Statement
Financial position before conversion
Form 17
Application for conversion
Form FiLLiP
LLP incorporation form
Form 3
LLP agreement submission
STEP-BY-STEP
Process for Conversion Of Sole Proprietor To LLP in Rajahmundry
A structured process to convert a proprietorship business into a Limited Liability Partnership (LLP)
1
Obtain DSC & DIN
Designated partners must obtain a Digital Signature Certificate (DSC) and
Director Identification Number (DIN) to file LLP forms with the MCA.
2
Obtain Name Approval from MCA
Apply for name reservation through RUN-LLP ensuring the proposed LLP name
complies with MCA naming guidelines.
3
Draft LLP Agreement
Prepare the LLP Agreement defining partner roles, capital contribution,
profit-sharing ratio, and management rules.
4
File FiLLiP Incorporation Form
Submit the FiLLiP form with partner details, registered office address,
capital contribution, and supporting documents.
5
Receive Certificate of Incorporation
Upon verification, MCA issues the Certificate of Incorporation
along with the LLP Identification Number (LLPIN).
6
Apply for PAN, TAN & GST
Obtain new PAN and TAN for the LLP and update or apply for GST
registration if applicable.
✓
Close Proprietorship & Transfer Business
Close proprietorship accounts and transfer assets, liabilities,
licenses, and operations to the newly formed LLP.
Compliance & Post‑Conversion Requirements
After converting a Proprietorship into an LLP, ongoing legal, tax, and operational compliance is essential to maintain good standing and avoid penalties.
Annual Filings & MCA Compliance
LLPs must comply with MCA regulations by filing Form 8 (Statement of Accounts & Solvency) and Form 11 (Annual Return) annually.
LLPs with turnover above ₹40 lakh or capital exceeding ₹25 lakh must undergo a statutory audit to remain compliant.
Taxation & Financial Reporting
LLPs are taxed as separate legal entities and must file ITR‑5 annually.
Tax audits are mandatory if turnover exceeds ₹1 crore. GST‑registered LLPs must file returns as per applicable frequency.
Banking & Business Operations
All bank accounts, contracts, licenses, and vendor agreements must be updated in the LLP’s name.
Proprietorship accounts should be closed and stakeholders informed to ensure uninterrupted business operations.
Why Choose Us for LLP Registration?
Trusted expertise, transparent pricing, and complete compliance support
1
Expert Consultation & Hassle-Free Process
Our professionals guide you through name approval, documentation, and MCA compliance, ensuring a smooth and stress-free LLP registration journey.
2
End-to-End Documentation & Compliance
From MCA filings to LLP agreements and statutory compliance, we handle everything accurately while keeping you informed at every step.
3
Affordable Pricing & 24/7 Support
Enjoy transparent pricing with no hidden charges and round-the-clock assistance for queries, updates, and post-registration support.
Frequently Asked Questions
Converting a proprietorship into an LLP provides limited liability protection, a separate legal identity, better business credibility, tax efficiency, operational flexibility, and easier access to funding.
Any legally registered sole proprietorship in India can convert into an LLP, provided there are at least two designated partners and one of them is a resident of India.
Yes, all designated partners must obtain a Digital Signature Certificate (DSC) for online filings and a Director Identification Number (DIN) to comply with MCA regulations.
The complete conversion process usually takes 15 to 20 working days, depending on name approval, documentation, and MCA processing timelines.
All assets, liabilities, and business operations of the proprietorship are transferred to the LLP. Creditors must be informed and a formal transfer agreement is required.
Yes, the proprietorship bank account must be closed and a new bank account should be opened in the name of the LLP using its Certificate of Incorporation and PAN.
No, an LLP requires a minimum of two partners. A single owner must add at least one partner before proceeding with the conversion.
The LLP name can be similar to the proprietorship name but must end with “LLP” and be approved by the Ministry of Corporate Affairs (MCA).
LLPs must file annual MCA forms such as Form 8 and Form 11, along with income tax returns and GST filings if applicable.
Yes, LLPs enjoy tax efficiency, no dividend distribution tax (DDT), and partners are taxed individually, helping avoid double taxation.
Yes, LLPs have higher credibility compared to proprietorships, making it easier to secure bank loans and attract investors.
Existing contracts, licenses, and agreements must be transferred or updated to reflect the LLP structure with vendors and clients.
If the proprietorship was GST registered, the LLP must obtain a fresh GST registration. GST is mandatory if turnover exceeds the prescribed limit.
Yes, but a No Objection Certificate (NOC) from creditors is required and all liabilities must be properly transferred to the LLP.
Yes, an LLP can be dissolved by filing Form 24 with the MCA after clearing all liabilities and completing closure formalities.
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