PARTNERSHIP TO LLP

ABOUT PARTNERSHIP TO LLP

The traditional form of partnership is not governed by any form of limited liability and separate legal entity. There is more  flexibility when it comes to  LLP. These facilities are not part of a traditional partnership. Therefore, making the transition from a partnership to an LLP is a good choice if the partners want some form of flexibility. However, there is a formal process for the same process to do the above process. A partnership is governed by the principles of the Indian Partnership Act, 1932. The basic features of a partnership are- An association or arrangement between two or more persons to divide share in the profits and losses of a  business or establishment. There is a separate legal document called the partnership deed in which the profit sharing ratio of the general partners is regulated. There is no form of limited liability status that general partners enjoy in a partnership. Therefore, converting the  partnership to an LLP would be an ideal choice if the partners want a more flexible and limited liability status.

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