Overview
A Limited Liability Partnership (LLP) is a popular business structure for professionals and small businesses because it combines the flexibility of a partnership with the limited liability of a company. However, as businesses grow, many LLPs face limitations in raising equity capital, expanding into larger markets, and building corporate credibility. A Private Limited Company structure provides more growth opportunities, allows easier fundraising, and offers a strong corporate identity, which helps in attracting investors, customers, and talented employees. This is why many growing LLPs choose to convert into private limited companies.
The conversion is governed by the Limited Liability Partnership Act, 2008 and the Companies Act, 2013. After conversion, the private limited company becomes a separate legal entity distinct from its shareholders, while all the assets, liabilities, rights, and obligations of the LLP get automatically transferred to the new company. The partners of the LLP become the shareholders and directors of the private limited company. There is no capital gains tax if the conversion is carried out in accordance with the prescribed legal provisions.
At BizGlobal, we assist you in smoothly converting your LLP into a private limited company. Our team prepares all legal documents, obtains required approvals, files the necessary forms with the Ministry of Corporate Affairs (MCA), and ensures a seamless transition without any operational disruptions. With our professional support, you can focus on business expansion while we handle the entire legal and compliance process accurately and efficiently.
