Conversion from firm into limited liability partnership
Firm as mentioned in section 4 of the Indian Partnership Act 1932. Convert in links to a firm changing into a limited liability partnership process a transfer of the liabilities, property, privileges, assets, obligations, interests. The managing of the firm to the LLP in following with this plan. We have discuss about the conversion from a firm into limited liability partnership (LLP).
Conversion from firm into limited liability partnership
- A firm may change into LLP by following with the needs as to the change place in this section.
- On modifies, the partners of the firm shall be move by the conditions of this clause which are related to them.
A firm may request to change into LLP with this section. If the LLP partners into which the firm is to be comprise, changed, whole partners of the firm and no one else.
Statements to be filed
A firm may request to change into LLP by filing with the registrar as:
- A declaration for all partners in such procedure and form with such fees as the government may specify with the following details as:
- The registration of firm and their number if given in the firm,
- The firm registration date under the Indian Partnership Act 1932
- Registration statement and document mentioned in section 11.
Registration of conversion
On obtaining the documents mentioned in the section 4, the registrar shall concern to the conditions of this act. The registrar check the documents and provide a registration certificate and he may decide that announcing which the LLP is on and from the date mentioned in the certificate. The LLP registration done within 15 days of the given date, tell the specified registrar of firms with which it was registered under Indian Partnership Act 1932.
Registrar may reject to register
Nothing in this section shall be explained as to need the registrar to register any LLP. If he is not happy with the details or other instruction provided under this act.
Specified that a request may be made before the board in proceedings of substance of registration by the registrar.
Mentioned that the board is found under the company’s act 1956. The registrar may in any specific case, need the documents mentioned to in section 4 to be authorized in such way.
Effect of registration
The date of LLP registration mentioned in the registration certificate provided under paragraph 5:
An LLP name is mentioned in the registration certificate is registered under this act.
All tangible and intangible property is placed in the firm, obligations, interests, liabilities, privileges involving to the firm. The total managing of the firm shall be transferred. It shall place in the LLP without other deed, act or work.
The firm shall be considered to be modified and if registered earlier under the Indian Partnership Act 1932 and it is removed from the records continued under that act.
Registration in relation to property
The paragraph 7 is registered with any authorizer, the LLP shall quickly possible after the date of registration, consider all required steps by the proper authority to declare the authority of the change and of the elements of the LLP in such medium and type as the authority may describe.
The entire results or by against the firm that are pending in any board or court or before any authorization on the date of registration may be maintained, enforced by and finished or against the LLP.
Continuance of ruling, conviction, judgment or order
Any idea, ruling, judgment or order of any court, board or other rules in favour of or against the firm may be executed by or against the LLP.
Each agreement to that the firm was a group instantly before the registration of LLP date, whether or not of such creation which the liabilities and rights has allocated. It shall have perform from the date as if:
The LLP were a company to such an conformity or the firm
For any action to the firm, there were modified in details of anything to be done on or after the date of registration specified to the LLP.
All instruments, agreements, bonds, contracts, deeds and deals managing instantly before the date of registration describing to the firm or which firm is a company. It shall impossible by or against the LLP. If the LLP were specified therein or were a company thereto instead of the firm.
Continuance of employment
Each agreement of employment to which specified in paragraph 11 or 12 registers shall maintain to be in force on or after the date of registration.
Existing appointment, power or authority
Each meeting of the firm in any part or range which is in force directly before the date of LLP registration. It shall take action and manage from the date as if the LLP were fixed. Any control or authority consult on the firm which is in force quickly before the date of registration shall take action and manage from that date. If it were communicated on the LLP.
Application of paragraph 7 to 14
The terms of paragraph 7 to 14 (both including), shall register to any license, approval or license provided to the firm under all other act which is in effort instantly before the date of registration of the LLP, matter to the conditions of such other act under such permit, license or approval has been provided.
Partner liable for obligations and liabilities of firm before changes
However if anything specified in paragraphs 7 to 14 (both including), each partner of a firm which has changed into an LLP. It shall keep as personally responsible (severally and jointly with the LLP) for the obligations and liabilities of the firm which were caused initial to the conversion or that appear from any agreement commenced into prior to the changes.
If any partner removes any obligation or liability mentioned in sub-paragraph (1), he shall be allowed (topic to any contract with the LLP to the opposite) to be totally compensated by the LLP conversion.
Notice of changes in relationship
The LLP shall make that for a term of 12 months starting not later than 14 days of the LLP registration, each official interaction of the LLP carries the following:
A declaration which was from the date of registration, changed from a firm into LLP.
The LLP registration and number, if relevant of the firm from which it was changed.
Any LLP which breaks the conditions of sub-paragraph (1) shall be penal with fine which shall not be less than 10,000 rupees.