Business Entity Conversion
Outgrown your current business structure? Convert your proprietorship, partnership or OPC into an LLP or Private Limited Company smoothly.
Starting at ₹9,999*What Is Business Entity Conversion?
As a business grows, its original structure can start to limit it — a proprietorship offers no liability protection, a partnership makes fundraising difficult, and an OPC has a hard ceiling on paid-up capital and turnover. Converting into an LLP or Private Limited Company creates a separate legal entity with limited liability and easier access to investment. An OPC must mandatorily convert to a Private or Public Limited Company once paid-up capital exceeds ₹50 lakh or average turnover exceeds ₹2 crore, and can also convert voluntarily. Since conversion generally creates a new legal person, PAN, GST registration, bank accounts, contracts and licenses all need to be migrated to the new entity — a process we manage end to end alongside the incorporation and regulatory filings.
Who Should Use This Service
Proprietors and partnership firms wanting limited liability protection as they scale.
Businesses seeking equity investment that requires a Private Limited or LLP structure.
OPCs crossing the mandatory conversion thresholds for paid-up capital or turnover.
Businesses wanting a cleaner, more credible structure for vendors, banks or customers.
What's Included
Proprietorship to Pvt Ltd/LLP
Full conversion including asset transfer and new entity incorporation.
Partnership to LLP
Convert your partnership firm into a Limited Liability Partnership.
OPC to Private Limited
Mandatory or voluntary conversion once OPC thresholds are crossed.
Regulatory Migration Support
PAN, GST, bank accounts and licenses updated to the new entity.
Documents Required
Existing registration documents — proprietorship/partnership deed, GST certificate, PAN.
Financial statements — for the asset and liability transfer to the new entity.
ID and address proof of all proprietors/partners becoming directors/partners in the new entity.
Consent and no-objection from creditors and relevant parties, where required.
How It Works
Structure Assessment
We recommend the right entity type for your growth stage.
Documentation
Conversion agreement, resolutions and consents prepared.
Filing & Incorporation
New entity incorporated and conversion filed with authorities.
Migration
GST, bank accounts, contracts and licenses transferred to the new entity.
Timeline
Business entity conversion typically takes 30–60 days depending on the type of conversion, asset transfer complexity, and regulatory approvals required from the MCA and other authorities.
Related Services
Common Mistakes to Avoid
Not accounting for capital gains tax or stamp duty implications that can arise on conversion.
Skipping the statutory notice period to creditors that some conversions require before approval.
Failing to transfer licenses and registrations — GST, MSME, trade license — to the new entity after conversion.
Leaving the old entity's compliance obligations open instead of formally closing them out post-conversion.
Frequently Asked Questions
Why convert my business structure?
Common reasons include gaining limited liability protection, easier fundraising and equity investment, improved credibility, or crossing a threshold that requires conversion — such as an OPC exceeding its paid-up capital or turnover limit.
Does conversion affect my existing contracts?
Contracts, licenses, GST registration and bank accounts generally need to be updated or reassigned to the new entity since conversion typically creates a new legal person — we help manage this transition.
How long does a conversion take?
Typically 30–60 days depending on the type of conversion, asset transfer complexity, and regulatory approvals required from the MCA and other authorities.
Is PAN changed when converting a proprietorship to a company?
Yes, since a proprietorship uses the proprietor's personal PAN while an LLP or company is a separate legal entity requiring its own PAN, along with fresh GST registration linked to the new PAN.
When must an OPC convert to a Private Limited Company?
An OPC must mandatorily convert to a Private or Public Limited Company once its paid-up share capital exceeds ₹50 lakh or average annual turnover exceeds ₹2 crore during the relevant period, and can also convert voluntarily at any time.
Is conversion of a partnership firm into an LLP tax-neutral?
Generally yes, if the conditions under Section 47(xiiib) of the Income Tax Act are met — such as all partners becoming partners of the LLP in the same proportion and no consideration other than the LLP interest being received.
What licenses need to be re-applied after entity conversion?
GST registration, MSME/Udyam registration, trade licenses, bank accounts and most regulatory registrations need to be freshly obtained or transferred in the new entity's name — they don't carry over automatically.