Proprietorship to LLP

An LLP gives a proprietor limited liability and a separate legal entity, with lighter compliance than a company and the flexibility of a partnership — provided a second partner is brought in, as an LLP needs at least two.

The conversion means incorporating an LLP and transferring the proprietorship's business into it under an agreement, then migrating the registrations.

1. 01

   Incorporate the LLP

   Form the LLP through FiLLiP (DSC, DPIN, name approval) with at least two partners.

2. 02

   LLP agreement

   Draft and file the LLP agreement (Form 3) setting out contribution and profit-sharing.

3. 03

   Transfer the business

   Transfer the proprietorship's assets and liabilities to the LLP under an agreement.

4. 04

   Migrate registrations

   Migrate GST, licences, and bank accounts and close the proprietorship's registrations.

PBT moves you to an LLP cleanly, with limited liability and lighter compliance.

• Incorporation and a well-drafted LLP agreement
• A clean transfer of business and registrations
• Attention to the tax and stamp-duty treatment
• A clean wind-down of the proprietorship
• Scope, deliverables, and fees agreed in writing up front

• Can a single proprietor convert to an LLP alone?

  No. An LLP needs at least two partners, so a second partner must be brought in as part of the conversion.

• Is an LLP less compliance than a company?

  Yes. An LLP has fewer filings and a statutory audit only above turnover/contribution thresholds, while giving limited liability.

• How long does it take?

  Incorporation takes about two weeks; the transfer and migration a few weeks more.