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LLP Registration
Limited Liability Partnership (LLP) Registration in India
LLP combines limited liability with operational flexibility. Perfect for small businesses and professionals
seeking liability protection without the rigid corporate structure.
- Complete your LLP registration within 14 business days
- LLP agreement drafting, name approval and compliance requirements covered
- Tailored services for startups, professionals, and businesses to set up an LLP seamlessly
OVERVIEW
Limited Liability Partnership (LLP) registration is a popular choice for startups
and small businesses, blending the features of a partnership and a private company.
One key advantage is that LLPs require no minimum capital, making them accessible
to new entrepreneurs. The process begins with selecting a unique business name,
which is checked for availability using the RUN-LLP service on the Ministry of Corporate Affairs (MCA) portal.
To officially register, applicants must submit Form FiLLiP through the MCA. This form includes the LLP's proposed name, registered office address, and partner details. Each partner needs either a Director Identification Number (DIN) or Designated Partner Identification Number (DPIN), along with a Digital Signature Certificate (DSC) to sign electronic documents. Required documents include identification and address proof for partners, as well as evidence of the registered office address.
After the business name is approved, the LLP agreement is drafted to define the roles, responsibilities, and profit-sharing ratios among partners. This agreement is a foundational document for the LLP's internal structure. Upon verification, the MCA issues a Certificate of Incorporation, officially recognizing the LLP as a legal entity.
Once incorporated, the LLP must open a bank account in its name and obtain PAN and TAN for tax purposes. Additionally, businesses may choose to register as an MSME to access government benefits for small enterprises. LLPs offer flexibility in management, protect partners' personal assets, and have fewer compliance requirements than a private limited company, making them an attractive option for small enterprises seeking a scalable, low-compliance structure.
To officially register, applicants must submit Form FiLLiP through the MCA. This form includes the LLP's proposed name, registered office address, and partner details. Each partner needs either a Director Identification Number (DIN) or Designated Partner Identification Number (DPIN), along with a Digital Signature Certificate (DSC) to sign electronic documents. Required documents include identification and address proof for partners, as well as evidence of the registered office address.
After the business name is approved, the LLP agreement is drafted to define the roles, responsibilities, and profit-sharing ratios among partners. This agreement is a foundational document for the LLP's internal structure. Upon verification, the MCA issues a Certificate of Incorporation, officially recognizing the LLP as a legal entity.
Once incorporated, the LLP must open a bank account in its name and obtain PAN and TAN for tax purposes. Additionally, businesses may choose to register as an MSME to access government benefits for small enterprises. LLPs offer flexibility in management, protect partners' personal assets, and have fewer compliance requirements than a private limited company, making them an attractive option for small enterprises seeking a scalable, low-compliance structure.
Limited Liability Partnership Act, 2008
An Act to make provisions for the formation and regulation of limited liability partnerships and for matters connected therewith or incidental thereto
What is an LLP?
A Limited Liability Partnership (LLP) is a unique type of business setup that blends
a partnership's and a company's features. In an LLP, partners enjoy limited liability,
similar to shareholders in a company, while also benefiting from the flexibility and
simplicity of a partnership. This arrangement grants the LLP its legal identity,
allowing it to take legal actions and be subject to legal actions separately from its partners.
LLPs have become popular among entrepreneurs in various industries because they shield partners' assets and have more straightforward regulatory requirements than traditional corporations. The concept of LLP was introduced in India in 2008 and is governed by the Limited Liability Partnership Act, offering a dependable and adaptable option for businesses of all sizes.
LLPs have become popular among entrepreneurs in various industries because they shield partners' assets and have more straightforward regulatory requirements than traditional corporations. The concept of LLP was introduced in India in 2008 and is governed by the Limited Liability Partnership Act, offering a dependable and adaptable option for businesses of all sizes.
Limited Liability Partnership in Company Law
In Company Law, Limited Liability Partnerships (LLPs) represent a unique entity offering limited liability protection to its partners. Unlike traditional partnerships, LLPs enjoy separate legal status while maintaining operational flexibility akin to partnerships. This framework under the LLP Act, 2008, facilitates streamlined registration and operational processes for businesses in India.
Main Features of Limited Liability Partnership
Key features of a Limited Liability Partnership (LLP) include :
- Legal Status of LLPs
LLPs have a separate legal entity status, distinct from their partners, which allows them to own assets, enter into contracts, and sue or be sued in their own name. - Flexibility in Management
LLPs offer flexibility in management structure and decision-making processes. Partners can choose to manage the LLP directly or appoint designated managers or committees for specific functions. - Liability Protection
LLP partners enjoy limited liability, meaning their personal assets are protected from the debts and liabilities of the LLP. Each partner is only liable to the extent of their agreed contribution to the LLP. - Minimal Compliance Requirements
Compared to companies, LLPs have fewer compliance requirements. They are not required to hold annual general meetings (AGMs) or maintain extensive statutory records, simplifying administrative burdens. - Taxation Benefits
LLPs are taxed as partnerships, with profits distributed to partners taxed at the individual level. This avoids the double taxation that occurs with corporate entities, where both the company and shareholders are taxed. - Perpetual Succession
LLPs have perpetual succession, meaning the LLP continues to exist even if partners change due to retirement, resignation, or death. The LLP's existence is not affected by changes in its membership. - Ease of Transferability
LLP interests can be easily transferred, subject to the terms of the LLP agreement. This allows for changes in ownership and investment without disrupting the LLP's operations.