Minimum Requirements
- Minimum 2 Designated Partners
- DIN (Director Identification Number) of Partners
- No minimum capital requirement
- Digital Signature Certificate (DSC) of at least one partner
- At least one partner must be an Indian resident
Top Advantages of LLP
- Protection from personal liability
- No mandatory statutory audits for small LLPs
- Affordable registration and compliance costs
- Legally recognized as a separate business entity
- Simplified regulatory obligations
What is a Limited Liability Partnership (LLP)?
A Limited Liability Partnership (LLP) is a hybrid business structure that merges the operational flexibility of a partnership with the legal protections of a private limited company. Each partner’s liability is limited to the extent of their contribution, and no partner is accountable for the negligence or misconduct of others.
Introduced through the Limited Liability Partnership Act, 2008, LLPs are ideal for professionals and family-run businesses seeking operational ease with legal protection.
Why Choose LLP?
- Shared Responsibility: Combines diverse expertise while reducing individual liability.
- Risk Distribution: Each partner’s exposure is limited and independent.
- Professional Suitability: Common among lawyers, chartered accountants, consultants, and advisory firms.
- Easy Compliance: Fewer regulatory burdens compared to private limited companies.
Key Features of an LLP
- Recognized as a separate legal identity
- Liability is limited to agreed contributions
- Cost-effective setup and maintenance
- No cap on capital infusion or types of contributions (cash, property, services)
- Statutory Audit required only if contribution exceeds ₹25 lakhs or turnover exceeds ₹40 lakhs
Eligibility Criteria to Form an LLP
- At least 2 designated partners, one of whom must be an Indian resident
- Each partner must have a DPIN (Designated Partner Identification Number)
- At least one Class-2 DSC for e-filing
- Contribution (monetary or non-monetary) by each partner
- Registered office address with valid proof
Documents Required for LLP Registration:
For Each Partner
- PAN Card (mandatory) / Passport (for foreign nationals)
- Identity proof (Aadhaar/Passport/Voter ID/Driving License)
- Address proof (Bank Statement / Utility Bill – not older than 2 months)
Registered Office Documents
- Owned Property: Utility bill + NOC from the owner
- Rented/Leased Property: Rent agreement + latest utility bill + NOC from landlord
- Utility bills accepted: Electricity, gas, water, landline – dated within 60 days
Step-by-Step LLP Registration Process in India:
Step 1: Name Reservation via RUN-LLP
The first step is reserving a unique name through the RUN-LLP (Reserve Unique Name – LLP) portal on MCA.gov.in.
You can propose two names with justification. Once approved, the name will be held for 20 days.
Note: Check availability of the name on MCA & under the Trademark Registry before applying.
Step 2: Obtain DSC for Designated Partners
Each designated partner must have a Digital Signature Certificate (DSC) to digitally sign forms submitted to MCA.
Step 3: File Form FiLLiP for Incorporation
The incorporation of LLP is done through Form FiLLiP – an integrated form that includes:
- DIN allotment
- Name reservation (if not previously done)
- Incorporation details
Attach the subscriber sheet, consent letters, KYC documents, and registered address proof. The form must be signed with DSC and certified by a practicing professional (CA/CS/CWA).
Step 4: Receive Certificate of Incorporation
Upon successful verification, the MCA issues a Certificate of Incorporation via email, confirming your LLP’s legal status.
Step 5: File LLP Agreement (Form 3)
Within 30 days of incorporation, file your LLP Agreement through Form 3.
This agreement outlines:
- Roles and responsibilities of each partner
- Profit-sharing ratio
- Management structure
- Dispute resolution process
The agreement must be printed on stamp paper and notarized. Stamp duty is based on state and capital contribution.
Why LLP is a Great Business Choice?
- No Minimum Capital Requirement: You can start with any amount
- Operational Flexibility: Run your business your way with a formal agreement
- Legal Protection: Limits each partner’s liability
- Affordable Compliance: Save on audit and filing costs
- Preferred for Professionals: Especially suited for CA, legal, and consulting firms
Final Words
If you’re starting a service-based business or a small-scale partnership, LLP is one of the smartest, most affordable, and legally secure ways to start your business in India.
You can rely on experienced consultants to handle the complete LLP registration process, from DSC to agreement drafting, and ongoing compliance.