Being the sole proprietorship is the most convenient type of business entity meant for conducting business as it avails the ease of doing business, 100% reaping of profits, availing the Income tax deductions and exemptions. However, being the sole proprietor, it also puts a number of constraints regarding the decision making and expertise as it is limited to one person only and the business depends on the judgement and wisdom of 1 person only. To expand the business to the next level, the business requires other inputs like capital, expertise, experience which can be fulfilled with the conversion from proprietorship to partnership firm. Apart from the above benefits that come with the Partnership firm, the Limited Liability Partnership limits the liability of the Partners and also, it is regulated under the Ministry of Corporate Affairs, hence giving more credibility to the entity as compared to the Sole proprietorship and Partnership firm.
Benefits of conversion from Proprietorship to Limited Liability Partnership
Documents required for Conversion
Self attested copy of PAN card from the Partners
Self-attested copy of Identity proof of the Partners (Aadhar card, Driving Licence, Voter ID, Passport)
Latest photographs of Partners
Address proof of Registered business premises (Latest electricity bill / telephone bill)
Rent agreement in case the premises is leased or rented.