Convert LLP to Private Limited Company

Scale your business by converting your Limited Liability Partnership (LLP) into a Private Limited Company under Chapter XXI of the Companies Act, 2013. Ideal for startups looking to raise Venture Capital (VC) or Angel Investment.

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What is Conversion?

Conversion allows an existing LLP to become a Private Limited Company without losing its identity or transferring assets manually. This is primarily done to raise funds by issuing shares to investors, which is not possible in an LLP structure.

Benefits Explained

Fund Raising

Private Limited Companies can issue equity shares to Venture Capitalists (VCs) and Angel Investors, facilitating easy capital infusion.

Higher Valuation

Investors prefer the Private Limited structure for its governance and regulatory framework, leading to better valuations.

ESOPs

You can issue Employee Stock Ownership Plans (ESOPs) to attract and retain top talent, which is not possible in an LLP.

Global Credibility

The "Private Limited" tag is recognized globally and enhances credibility with international clients and vendors.

Documents Required

Partner Consent Written consent of all partners
Newspaper Ad Copy of URC-2 advertisement
Financials Statement of Accounts (Certified)
LLP Returns Latest ITR and Annual Returns filed
NOC No Objection from Secured Creditors

Conversion Process

1

Name Approval

Applying for name reservation (RUN) for the proposed company (usually same as LLP).

2

Publish Advertisement

Publishing Form URC-2 in two newspapers (English & Vernacular) seeking public objections.

3

File URC-1

Filing Form URC-1 with the ROC along with the newspaper ad and other documents.

4

Incorporation

Filing SPICe+ forms. Upon approval, the Certificate of Incorporation (COI) is issued.

Frequently Asked Questions

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