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Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
A Limited Liability Partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or liable for another partner’s misconduct or negligence.

Advantages of Limited Liability Partnership :

Separate Legal Entity :
A Limited Liability Partnership enjoy the privilege of being separate from its designated partners. Partners cannot claim the property vested in LLP’s name.

Limited Liability Protection :
The liability of partners extends only up to the capital contribution however in case a partners acts with an intension to conduct fraud, they are personally liable. It has the words ‘Limited’ as part of its name.

Perpetual characteristic :
A LLP incorporated under Limited Liability Act, 2008 act never dies. It has a separate legal entity and hence enjoys the never ending characteristic irrespective of change in designated partners. The company can, only be closed with the consent of all partners or through the process prescribed by Law.
Legal Proceedings :
The Limited Liability Partnership can also sue or be sued in its own name as its enjoys the privilege of being separate legal entity.

Purchase of Property :
Being separate entity from its designated partners the Limited Liability Partnership can purchase the moveable and immoveable property in its name.

Documentation to convert Partnership into LLP

1. Obtain the Designated Partners Identification Number (DPIN) for the designated partners.The application shall be made in e-form 7.
2. Application in e-form 1 to check the name with which the LLP to be incorporated.

3. E-form 17 – Application for conversion of Partnership into LLP along with the following attachments:

• Statement of partners of the firm(Mandatory in nature).
• Statement of assets and liabilities of the firm duly certified as true and correct by the Chartered Accountant in practice (Mandatory).
• Copy of acknowledgement of latest income tax return (Mandatory).
• Approval from any regulatory body/ authority (Mandatory, in case applicable approvals from the concerned body/ authority or authorities is required and have been obtained).
• List of all the secured creditors along with their consent to the conversion (Mandatory in case consent of all the secured creditors for conversion of the firm into limited liability partnership has been).
• Any other information can be provided as an optional attachment.