Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Conversion into LLP — Sections 55, 56, 57 & 58

## Conversion Into LLP

### Who Can Convert

SectionEntity ConvertingApplicable Schedule
55Partnership Firm → LLPSecond Schedule
56Private Company → LLPThird Schedule
57Unlisted Public Company → LLPFourth Schedule

## Section 58 — Registration and Effect of Conversion

### Sub-section (1) — Registration

  • On being satisfied that the firm / private company / unlisted public company has complied with the respective Schedule, RoC shall:
  • Register the documents, AND
  • Issue a Certificate of Registration in the prescribed form.
  • The LLP is effectively incorporated from the date mentioned in the Certificate of Registration.

### Sub-section (2) — Information to be Given

Within 15 days of registration, the LLP shall inform the Registrar of Firms (in case of firm) / RoC (in case of company) about such conversion, along with prescribed particulars of the LLP.

### Sub-section (3) — Binding Effect

Upon conversion, the LLP, partners, and all other persons shall be bound as per the respective schedule.

### Effect of Registration (Non-Obstante Clause)

From the date of registration, notwithstanding anything in any other law:

1. An LLP by the specified name is registered under this Act.

2. All tangible (movable/immovable) and intangible property, assets, interests, rights, privileges, liabilities, obligations, and whole undertaking of the firm/company are transferred to and vest in the LLP.

3. The firm or company shall be deemed to be dissolved and removed from the records of the Registrar of Firms / RoC.

## Section 59 — Foreign LLPs

The Central Government may prescribe rules for foreign LLPs (similar to provisions for foreign companies in the Companies Act 2013) regarding the establishment of place of business, regulatory norms, and filings.

Worked example

### Example 1

Example: XYZ Pvt Ltd converts to LLP under Section 56. On the date of registration, ABC Bank is a creditor of XYZ Pvt Ltd. Whose obligation is the bank's debt?

Answer: Upon registration, all liabilities (including the bank loan) automatically vest in the LLP under Section 58. The company is deemed dissolved. The bank may proceed against the LLP.

### Example 2

Example: A partnership firm completes conversion on 1st June. By when must it inform the Registrar of Firms?

Answer: Within 15 days of registration → by 16th June, under Section 58(2).

⚠️ Common exam mistakes

  • Mismatching the schedule with entity: Firm → 2nd; Private Co. → 3rd; Unlisted Public Co. → 4th. Listed public companies cannot convert.
  • Forgetting the 15-day notice to the Registrar of Firms / RoC.
  • Missing the automatic vesting of all properties and liabilities — no separate transfer deed is required.
  • Believing the converted firm/company continues — it is deemed dissolved.
Reference: Sections 55–59 — Limited Liability Partnership Act, 2008
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic