CA Prince Bansal (sanjay place) (30 Points)
17 September 2019if anyone has a business transfer agreement for conversion of proprietorship firm into a Private limited company, please share at princebansal8 @ gmail.com
whether on conversion of a firm into LLP form 3 is Mandatarly required to be filed, if yes then as linked form or after incorporation of LLP
Please Give your grateful suggestions
Thank You
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 17 September 2019
A sole proprietorship firm can not be converted to a LLP, as there is no law regulating it.
However, the business of such proprietorship can be acquired by a LLP as a going concern.
So, practically get a LLP incorporated and enter in an agreement between LLP and the proprietorship firm .
Refer:: https://www.registrationstoday.com/convert-a-proprietorship-firm-to-an-LLP.htm l
https://vakilsearch.com/advice/convert-sole-proprietorship-partnership/
https://www.myonlineca.in/convert-proprietorship-firm-partnership-firm/
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177713 Points)
Replied 17 September 2019
Steps to convert proprietorship firm into LLP
The first step is to apply for the DSC or Digital Signature Certificate with self attested proof of address and identity. This process takes 1 day.
Next is the application for the Designated Partner Identification Number or DPIN; it is necessary to get an approved DPIN for the incorporation of the company. Applying and getting a provisional DPIN first would involve certification and attestation of the personal details of the director. These documents have to be submitted later to the MCA cell for approval. It could take about 5 working days.
The pre-name application search is the third step; it involves first making an online search for the company names available. The promoter has to look for desired names and then provide a minimum of 6 names on priority basis.
Next is the application for name availability that could take about 6 working days. It involves filing of Form 1, 6 names for the company and the filing of the Main Object Clause of the LLP. So drafting of the Main Object Clause to be pursued after incorporation is very necessary.
The fifth step is the making of representations before the Registrar of Companies; taking about 1 day, it involves making changes in the Name application as suggested by the Registrar of Companies.
The next step that follows is the drafting of the LLP agreement and then getting it vetoed by the promoters before sending it for printing. It also involves processing of e-forms. The documents required for incorporation of the LLP are LLP Agreement duly stamped, Form 2, Form 3, Form 4 and Form 9, the subscriptttion sheet signed by the promoters, and proof of address of the registered office of the company. The process would take 2 days.
The final step is filing the required documents before the Registrar Of Companies and following up with him/her. This also involves online uploading of e-Forms, payment of registration fees and the issue of Certificate of Incorporation. Changes should also be made in the LLP Agreement and other documents required for incorporation according to the suggestions of the Registrar Of Companies.
Courtesy ... Mehak Aggarwal, works at Wazzeer - Smart Platform for Legal, Accounting and Compliance Service
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