• 9051 NG-Associates Incorporate

Proprietorship to LLP

One of the easiest forms of business for startups and small businesses to start is a sole proprietorship. In addition, a sole proprietor can opt to convert his business to a Limited Liability Partnership, which has many benefits like a private limited company. There are some disadvantages to this, like unlimited liability, yet businesses accept it as part of their entrepreneurship journey. When a business becomes too complex to manage and control individually, a sole proprietor moves into a more formal form of business structure. LLPs also have tax benefits and require less annual compliance. A sole proprietorship cannot be directly converted into a LLP as it has only one person. It can be either done by closing the proprietorship and registering an LLP or by including another person in the business and making him a partner and then converting it to an LLP.1st Step is to incorporate a new LLP by filing e-form FiLLiP for reserving the name and incorporating the LLP.