Partnership firm comes under the unregistered organization and LLP is a registered form of organization. Most of Partnership firm converted into LLP because it has separate legal identity, liability protection, unlimited partners and is having combined features of a partnership as well as companies etc. which make it attractive than Partnership firm
On the conversion of Partnership into LLP, all properties inclusive tangible (movable and immovable) and intangible property vested in the firm, assets, interests, rights, privileges, liabilities, obligations of the partnership firm are transferred to the LLP. In other words, the complete undertaking of the firm is transferred to the LLP. However, any approvals, permit, registration or license issued to the Partnership Firm will not be transferred automatically to the LLP and hence fresh licenses or registrations is required to be applied by LLP.
Following are some of the effects of conversion of Firm into LLP:
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