The Concept Limited Liability Partnership (LLP) was introduced in India by way of the Limited Liability Partnership Act, 2008. The basic idea behind the introduction of Limited Liability Partnership (LLP) is to provide organized form of business that is easy to incorporate, simple to maintain while providing limited liability to the owners. The most important feature behind introduction of concept of a Limited Liability Partnership over a traditional Partnership Firm is that, it provides limited liability protection to the owners from the debts of the LLP and one partner is not responsible or liable for another partner's misconduct or negligence. Hence, all partners in a LLP enjoy a form of limited liability benefit individually within the partnership, similar to that of the shareholders of a private limited company.

The Partnership Firm which wants to convert itself to LLP must be registered under Indian Partnership Act, 1932. That is, Unregistered Partnership Firm can’t be converted to LLP. LLP incorporated by conversion of Partnership Firm to LLP must have same partners as they were in the Partnership Firm.Therefore it is suggested that the Partnership Firm should retire all the Partners who do not wish to be a part of LLP and if new partners are to be added, they should be added after the incorporation of LLP

  Minimum two Partners.

  At least one of the Partners should be Resident of India

  DPIN of all the Designated Partners

  DSC of all the Designated Partners

  Up to date filing of ITR’s of all the Designated Partners

  The Partners shall receive consideration only by way of allotment of Shares in LLP