Practice Areas · Compliance · Changes & Conversions · Entity conversions · Company → LLP
Private Limited Company to LLP
Convert a private limited company into an LLP for lighter compliance, where equity funding isn't needed.
Converting a company to an LLP
A private limited company can convert into an LLP under the LLP Act, exchanging the heavier company compliance — statutory audit, board meetings, and extensive filings — for the lighter LLP regime.
It suits closely held companies that do not need to raise equity. Certain conditions apply, including no security interest subsisting on assets and tax-clearance requirements.
Why convert
Lighter compliance
No mandatory board meetings, fewer filings, and audit only above thresholds.
Tax efficiency
No dividend distribution; partners' profit share is exempt in their hands.
Flexible structure
Management and profit-sharing are set by the LLP agreement.
Separate legal entity
Limited liability and perpetual succession are retained.
How conversion works
- 01
Check conditions
Confirm eligibility — all shareholders become partners, no subsisting charges, consents and clearances in place.
- 02
Name & application
Reserve the LLP name and file Form 18 (conversion) with FiLLiP.
- 03
Registration
On approval, the company is converted and registered as an LLP.
- 04
Agreement & dissolution
File the LLP agreement and complete the dissolution of the company with the ROC.
Why work with PBT
PBT converts your company to an LLP where the conditions allow.
- Eligibility and charge/clearance conditions checked first
- Form 18 conversion and LLP agreement handled
- Member and creditor consents managed
- Attention to the tax treatment of the conversion
- Scope, deliverables, and fees agreed in writing up front
Frequently asked questions
Can any company convert to an LLP?
Only if conditions are met — all shareholders become partners, no security interest subsists on its assets, and tax and consent requirements are satisfied. We check eligibility first.
Are there tax implications?
Conversion is tax-neutral only if the conditions in the Income-tax Act (Section 47(xiiib)) are met; otherwise it can trigger tax. We plan it carefully.
How long does it take?
Usually three to five weeks, subject to clearances, name approval, and MCA processing.
Convert your company to an LLP
Tell us about your company, and we'll confirm eligibility and handle the conversion.
Send an enquiryThis page describes the nature of the firm's services and is not a solicitation or legal advice. Thresholds, timelines, and applicable registrations depend on your specific facts; engagement terms and fees are agreed in writing per assignment.