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Private Limited to LLP – Expertvuw
Change of Structure

Converting a Private Limited Company into an LLP

Last updated: 2 October 2026

An LLP offers limited liability with lighter compliance, which suits many professional and closely held businesses. Our team checks whether your company qualifies, handles the conversion filings and plans the tax side.

Overview

How a company converts into an LLP

Section 56 and the Third Schedule of the LLP Act, 2008 allow a private company (or unlisted public company) to convert into an LLP if:

  • there is no security interest outstanding or in force on its assets, and
  • all shareholders, and no one else, become partners of the LLP.

The LLP is incorporated through FiLLiP, with the conversion application in Form 18. Once registered, the company’s assets, liabilities and contracts vest in the LLP, and the company is treated as dissolved.

Tax: the conversion is not treated as a transfer under section 70(1)(ze) of the Income-tax Act, 2025 (earlier section 47(xiiib)) only if, among other conditions, turnover did not exceed ₹60 lakh in each of the three preceding years, total assets did not exceed ₹5 crore, shareholders become partners in the same proportion, partners keep at least 50% of profit share for five years, and accumulated profits are not paid out for three years.

Based on the LLP Act, 2008 and the Income-tax Act, 2025. Last updated: 27 September 2026.

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What This Service Covers

What our conversion service covers

1

Eligibility check, including charges on assets

2

Assessment against the tax-neutral conditions

3

LLP agreement drafting

4

FiLLiP and Form 18 filings

5

Transfer of PAN, GST, bank and licences

Key facts at a glance

Section 56

LLP Act provision for company conversion

No charges

No security interest may be outstanding

All shareholders

Must become partners, and no one else

Form 18

Conversion application

₹60 lakh

Turnover limit for tax-neutral conversion

₹5 crore

Total asset limit for tax-neutral conversion

Common Issues

Where these conversions commonly go wrong

The tax conditions decide whether conversion is worth it.

Charges outstanding

Existing bank charges block the conversion until satisfied.

Tax limits crossed

Turnover or assets above the limits make the conversion taxable.

Profits paid out early

Accumulated profits distributed within three years.

Related Services

Related services

Related services.

LLP to Private Limited

The reverse conversion.

LLP Registration

About LLPs.

Annual Compliance – LLP

LLP filings.

Tax Due Diligence

Checking the tax effect.

Documents Required

Documents we need from you

Company Documents

LLP Documents

Our Process

How we convert your company

1

Eligibility

Charges and shareholder consents checked.

2

Tax review

Tax-neutral conditions assessed.

3

LLP set-up

FiLLiP and Form 18 filed.

4

Registration

LLP registered; company dissolved.

5

Agreement

LLP agreement filed.

6

Updates

Registrations moved to the LLP.

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After Conversion

After conversion

The LLP follows LLP compliance from now on.

5-year watch

Partners keep at least 50% profit share.

3-year watch

No payout of accumulated profits.

LLP filings

Form 11 and Form 8 every year.

Registrations

GST, PAN and bank in the LLP’s name.

Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    Can a private limited company convert into an LLP?

    Yes, if no security interest is outstanding and all shareholders become partners.

    Form 18 for conversion, filed with the FiLLiP incorporation form.

    Only if the conditions are met, including turnover up to ₹60 lakh in each of the past three years and total assets up to ₹5 crore.

    It is treated as dissolved once the LLP is registered.

    Only after any charge on its assets is satisfied.

    About Expertvuw

    Who handles your case

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    This work is handled by Expertvuw’s team, with filings made on the MCA portal. Certifications and audits required by law are issued by independent practising professionals engaged for your case.

    Expertvuw Management Pvt Ltd