Conversion of LLP to Private Company

An Overview on Conversion of LLP to Private Company

CONVERSION OF LIMITED LIABILTY PARTNERSHIP TO PRIVATE LIMITED COMPANY

Limited Liability Partnership (LLP): A limited liability partnership (LLP) is a body corporate structure whereby the partners have limited liability. It has the characteristics of both company and partnership firm. It has separate legal identity. Further, in order to constitute an LLP, at least 2 partners and 2 individuals as designated partner is required.

Private Limited Company: For small businesses, the Private Limited Company is the best way to register as a business entity. Typically, this type of company is owned by a group of shareholders, and each shareholder holds a certain number of shares. In accordance with the Companies Act 2013, a company must have at least two members and a maximum of 200 members.