How to covert LLP to a private company?

How to covert LLP to a private company?

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There are different types of companies that might be a private company, public company, Limited Liability Partnership Company and any more. The operations of companies vary from one type to another. It is seen that operating the limited liability partnership can be a hurdle for the organization to offer better opportunities like expansion or growth of the business. in such cases the to attract the customers towards them, the organization structure can be changed from lpp to private company. Under section 266 of the companies act, 2013 the conversion of LLP to private limited companies in Bangalore or any part of the country is possible.

There is a certain process that is needed to be followed for the conversion. Let’s have a look at them.

  • Approval of name: First of all the name of the company is to be approved by the CRC and have to submit Reserve Unique Name in the prescribed e-format. Whenever the formalities are going for the submission of the RUN form there are several things to be considered. Once the name is approved by ROC, it will be available for use for 20 days in the case of the new company, and in the case of the existing company, it can be used up to 60 days.
  • Securing DSC and DIN: Both the Digital Signature certificate and the Director Identification Number are applied for all the members of LLP who after the conversion will become the directors of the private company if they want to. Self-attested identity proof and one recent photograph are required by the applicant while applying all these things.
  • Filling of the Form URC-1: Once the name of the company is approved by CRC, the application of the form URC-1 has to start.
  • In this form, there will be the requirement of all the information related to the names, addresses, and shares of the company, along with the list of members of the company.
  • According to Section 184 of the Companies Act, 2013. An affidavit is to be provided for all the proposed directors of the Private limited company. There will be a list of documents that needs to attach along with the file.
  • A copy of the LLP agreement along with the list of members and their addresses is to be submitted. The agreement copy should be signed by all the designated partners.
  • A no-objection certificate is to be submitted from all the creditors of the company.
  • A certified document statement of accounts is to from the company auditor is also to be submitted.
  • 6 days preceding the application of conversion, a copy of the news advertisement is to be provided by the company among the people. This is how the LLP is converted to a private company. It is better to take the help of the experts that will guide in every segment of documentation. The conversion of private company into LLP in Bangalore is different from this process. To get successful in this process, follow each instruction carefully so that the process can undergo smoothly.

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