A traditional partnership offers no liability protection to the partners, meaning personal assets could be at risk in case of business liabilities. An LLP provides limited liability protection, where liabilities are generally limited to the business assets unless due to fraud.

Partnerships may convert to LLPs to benefit from limited liability protection, tax advantages, and a more flexible management structure. It also enhances credibility with financial institutions and clients.

All partners must agree to the conversion, the partnership must be registered, and the firm should be compliant with all regulatory requirements up to the date of conversion.

The process starts with obtaining the consent of all partners, followed by filing the required forms with the Ministry of Corporate Affairs (MCA), including the incorporation document and subscribers' sheet.

Necessary documents generally include the partnership agreement, partners' consent, a statement of assets and liabilities of the partnership firm audited by a chartered accountant, and details of secured creditors, if any.

The process can vary depending on several factors but typically takes a few weeks to a few months from the filing of the application to the final approval and registration of the LLP.

Existing contracts and obligations are transferred to the LLP. The LLP continues to be liable for these contracts unless otherwise stipulated in the agreement or renegotiated.

The conversion itself is generally tax-neutral under Indian tax laws, provided specific conditions are met. However, it's advisable to consult a tax professional to understand any potential implications fully.

An LLP has to file annual returns, financial statements, and any necessary compliance forms with the MCA, which are generally more than those required for a traditional partnership.

The MOA defines the company's objects, scope, and powers, outlining what the company can and cannot do.