Conversion into a Limited Liability Partnership [Sections 55 — 58]

A family-run firm of chartered accountants has existed in Vashi for thirty years. Its partners have read about limited liability and want the protection, but they do not want to lose their clients, their office lease, or their bank accounts by closing the old firm and starting a new one. Is there a way to change the legal form without changing the business? Chapter X of the LLP Act, sections 55 to 58 and three Schedules, is the answer, and it covers firms, private companies and unlisted public companies.

In two minutes

A firm, a private company or an unlisted public company can convert into an LLP under sections 55 to 57 and the Second, Third or Fourth Schedule; on registration the business, property and liabilities pass to the LLP automatically and the old entity is deemed dissolved.

The rest of this chapter

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