Technically a proprietorship firm cannot be converted into an LLP. As there is no relevant form available on MCA to convert the proprietorship firm into an LLP. Hence a new LLP has to be incorporated and then that LLP can take over the proprietorship firm. The process for incorporation of LLP is as under.
- Obtain the DSC of all the partners
- Apply for name of the LLP
- File form for the incorporation along with the necessary documents with MCA
- File the agreement with the MCA
After the incorporation of LLP, the assets and liabilities of the proprietorship firm can be transferred to the LLP.