Effects of conversion of partnership firm into LLP

Partnership firms have many disadvantages when it is compared with other forms of business. There are many limitations of partnership firms when these are compared with newly introduced form of business LLP as partnership firms do not provide limited liability protection for the partners, separate legal entity status, ability to take unlimited number of partners and ease of ownership transfer. LLP's are introduced through the LLP !ct, 2008. This form of business is becoming premier choice of various small and medium sized businesses. In an existing partnership firm there is tremendous interest among the partners to convert the firm into LLP because of the various benefits of the LLP form of business.