Limited Liability Partnership Firm (LLP)

An LLP, or Limited Liability Partnership, is a hybrid Business Registrations structure that merges the benefits of both partnerships and private limited companies. Introduced in India through the Limited Liability Partnership Act, 2008 , this legal entity allows partners to manage the Business Registrations directly while enjoying limited liability protection—meaning their personal assets are protected in case of Business Registrations losses or legal issues.

Unlike traditional partnerships, an LLP is a separate legal entity. It can own property, sue or be sued in its own name, offering greater credibility and operational independence.

Prerequisites and Eligibility Criteria for LLP Registration in India

Before initiating the LLP enrollment process in India , it's important to understand the eligibility conditions set by the Ministry of Corporate Affairs (MCA). These criteria ensure legal compliance and smooth incorporation:

1. Minimum 2 Partners
2. DIN (Director Identification Number) for all the Designated Partners
3. If a body corporate is a Partner, it has to nominate a natural person as its Nominee
4. DSC (Digital Signature Certificate) for all the Designated Partners
5. There is no concept of share capital, but each Partner has to contribute towards capital of LLP
6. Address proof for office of LLP
7. Documents Required to Register a Limited Liability Partnership:

• Identity Proof and Address Proof Passport/ Aadhar card/ Voter ID/ Driver's License of partners, b. PAN card, and c. Utility bills or Bank Statements as address proof.
• Proof of Registered Office Any utility bill like an electricity bill or corporation tax receipt not later than 30 days or b. Rental Agreement or No Objection Certificate (NOC )
• Declaration and Consent of the proposed Partners Form DIR-9 serves as the official consent to assume the role of a Partner within the prospective company.

Steps for Limited Liability Partnership Registration

Obtain a Digital Signature Certificate (DSC)

1. LLP Name Approval

1. Reserve an LLP's name using the LLP-RUN form (Limited Liability Partnership - Reserve Unique Name). This web service used for the enrollment of LLP is overseen by the Central Registration Centre, which serves as the nodal authority.
2. There is a provision for the LLP to have two proposed names.

2. LLP Registration

1. Fill out the FiLLiP (Form for Incorporation of Limited Liability Partnership and submit it to the Registrar where the LLP's registered office is located.
2. As a part of additional documentation, submit the Subscriber sheet and consent of a Director (Form DIR-9) alongside FiLLiP .
3. Subscriber Sheet serves as legal evidence of the agreement of initial members or shareholders to participate in the partnership. It helps in establishing the initial ownership structure.

3. Submit LLP Agreement

1. File the LLP Agreement using Form 3 on the MCA portal within 30 days of the LLP being registered.
2. The agreement governs the mutual rights and responsibilities of the partners of the LLP.

🌟 Benefits of Registering a Partnership as LLP

✅ Limited Personal Risk Your personal assets remain protected.

✅ Low Compliance Cost Compared to private limited companies, LLPs have fewer statutory filings.

✅ No Audit for Small LLPs LLPs with turnover below ₹40 lakhs or capital contribution under ₹25 lakhs are exempt from audit.

✅ Attractive for Professionals Ideal for CA firms, lawyers, consultants, and architects.

✅ Easier to Attract Partners Flexible entry and exit for new partners.

⚠️ Limitations of an LLP

While LLPs offer many benefits, there are a few limitations:

❌ Limited Funding Options LLPs cannot raise equity capital like companies.

❌ Not Ideal for High-Growth Startups Investors usually prefer private limited companies.

❌ Taxation Similar to Partnerships LLPs don’t benefit from startup tax exemptions.

❌ Penalty for Non-Compliance Heavy penalties apply even for small non-compliances like delay in filing.

💼 Common Businesses that Use LLP Structure

LLPs are widely used in industries that require a mix of collaboration and limited risk. Common sectors include:

• Legal and accountancy firms
• Management consultancies
• IT and software development companies
• Architecture and design studios
• Event management and PR firms
• Marketing agencies and freelancers

💡 Why Choose Us for LLP Registration?

Setting up an LLP may sound straightforward, but compliance with the MCA norms, documentation, and agreement drafting requires expertise.

Here we offer:

📋 Expert consultation & name selection

🚀 End-to-end LLP enrollment in just 10–15 working days

📄 Professionally drafted LLP agreement

🧾 PAN, TAN, and GST enrollment assistance

🛡️ Ongoing compliance support

We simplify your startup journey – so you can focus on growing your Business Registrations.

❓ Frequently Asked Questions (FAQs)

1. Is LLP enrollment mandatory in India?

Yes, to operate an LLP legally, you must register with the Ministry of Corporate Affairs (MCA).

2. What is the minimum number of partners required?

An LLP must have at least two designated partners, one of whom must be an Indian resident.

3. Can an LLP be converted to a private limited company?

Yes, LLPs can be converted into private limited companies, but it involves fulfilling several legal requirements.

4. Is it necessary to have a commercial address for LLP enrollment?

You can use your residential address as the registered office, but proper documentation is needed.

5. What is the validity of LLP enrollment?

Once registered, an LLP exists perpetually until legally dissolved.