Limited Liability Partnership (LLP)

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    This is the Most Suitable Business Format for Small and Medium Sized Enterprises.

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    Starting at Rs 3999/- Onwards

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    (Duration – 10-15 Days)

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100% Online, Easy & All India Services

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12+ Years Experienced Team of Professionals

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Availability in Major Indian Cities

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Overview

Limited Liability Partnership, known as LLP is governed under the Limited Liability Partnership Act, 2008. LLP is the most efficient format of business as it has features of both a Partnership Firm and a Private Limited. LLP’s Compliances are less than the Company, leading entrepreneurs to focus on their business without worrying about compliances. It is the format where the liability of the partners is limited and it has separate and perpetual legal existence.

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Benefits Of Limited Liability Partnership (LLP)

Limited Liability

In a Limited Liability Partnership (LLP), partners are only liable for debts up to their capital contributions, protecting personal assets. One partner is not accountable for another's actions, unlike in traditional partnerships.

Separate Legal Entity

An LLP Is an artificial person created by law. It is governed under the LLP Act, 2008. Thus, it creates a separate legal identity of itself, from its partners, and provides immunity to the owner’s personal property or assets in case of bankruptcy.

Lower Compliance

Annual Compliance of an LLP is less as compared to a Private Limited Company. Thus, the annual charges of LLP Compliances are less than others, making it a cost-effective type of formation.

Easy to Start and Close

The Formation and Closure Process of an LLP is simple and cost-effective, as compared to a Private Limited Company. Thus, it is very effective for those start-ups who are unsure about the future of their business, as it leads to minimum cash outflow.

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Documentation For Limited Liability Partnership (LLP)

Partners

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    PAN Card of each partner

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    Address Proof of each partner(Aadhar card, Voter id, Passport, DL)

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    Latest Residence Proof (Electricity Bill, Gas bill, Mobile Bill)

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    Latest Passport Size Photograph of each partner

Office Premises

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    Latest Electricity Bill, Water Bill, and Gas bill of the office premises

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    NOC from owner/Rent Agreement

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Process

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Digital Signature Certificate (DSC)

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Persons who will be acting as a Partner or Designated Partner of the proposed company, need to apply for DSC. It is issued by the government-affirmed offices. DSC is required to sign and validate all the documents, as the entire process of registration is online.

Name Search and Approval

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Proposed name availability needs to be preliminary checked on MCA, and then Name Reservation needs to be filed under “RUN -LLP”. ROC will check the name availability on different parameters and then will issue the name approval letter.

LLP Incorporation

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Form FiLLip needs to be filed for incorporation of LLP along with the DIN allotment and PAN TAN Application. This contains the Address of the Proposed LLP, Business Activities to be carried out, Details of Partners, and the Contribution by Partners.

Incorporation, PAN & TAN Certificate

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Once Form FiLLip is approved; a Certificate of Incorporation is issued by the Ministry of Corporate Affairs along with the PAN and TAN Card of the LLP.

Filing of LLP Agreement

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An LLP Agreement is to be filed in Form No 3 within 30 days of the date of Incorporation. LLP Agreement needs to be printed on Stamp Paper, of the State where the registered office of the LLP is located.

Opening Bank Current Account

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Persons who will be acting as a Partner or Designated Partner of the proposed company, need to apply for DSC. It is issued by the government-affirmed offices. DSC is required to sign and validate all the documents, as the entire process of registration is online.

Compliances

COMPARISON WITH OTHER FORMATS TO CHOOSE THE BEST SUITABLE FOR YOUR BUSINESS
LLP vs. Private Limited Company vs. Partnership Firm vs. OPC Company vs. Proprietorship Firm

Proprietorship FirmPartnership FirmLimited Liability PartnershipPrivate Limited CompanyOne Person Company
Governed byNot Governed by any specific actIndian Partnership ActLLP Act, 2008Companies Act, 2013Companies Act, 2013
RecommendedSole PromoterSmall BusinessSmall BusinessStart-ups and growing businessSole Promoter
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RegistrationNAOptionalMandatoryMandatoryMandatory
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Members LiabilityUnlimitedUnlimitedLimitedLimitedLimited
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Separate Legal EntityNoNoYesYesYes
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Number of MembersOnly 12 – 502 – Unlimited2 – 200Only 1
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TransferabilityNon-TransferableNon-TransferableTransferable, if ROF registeredTransferableTransferable
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ComplianceLowLowModerateHighHigh
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Statutory AuditNoNoBased on TurnoverApplicableApplicable
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TaxabilityLowHighHighModerateModerate
FAQ

Any Questions? Answered

Our FAQ section addresses common inquiries to help you find the information you need quickly. If you have further questions, feel free to reach out!

To incorporate an LLP, minimum of 2 Partners are required and there is no upper limit on the number of members. The Partners of the LLP must be above age 18 and should have a valid address in India. At least one of the partners of the LLP must be a Resident Indian. Partners of the LLP can be Individuals or Body Corporates.
LLP Agreement is the written document that defines the rights, duties, and responsibilities of all the Partners towards each other and towards the business. It mentions the Business Activity which an LLP can carry on. It is a deed that gets signed by all the Partners of the LLP, and then the same gets stamped and notarized.
An NRI can become a partner of an LLP, the only requirement is that he should possess the valid Designated Partner Identification Number (DPIN) issued by the Ministry of Corporate Affairs. But the LLP must have one Indian Resident Partner.
By following the Provisions laid down in the LLP Act, 2016, an existing Partnership Firm can be easily converted into an LLP. One can convert their Partnership firm to LLP and can avail of all the benefits offered by an LLP to the business.
As LLP is not a Public Company, thus it cannot raise money from the General Public. However, it can raise the funds from Private Investors like Angel Investors, Venture capitalists, Private Equity Firms, etc., as LLP is a Registered Format, unlike a Partnership firm and investors find it attractive to invest in such a business.
As compared to Partnership Firm, LLP is a suitable format of business, as in this, the liability of the members is limited to the extent of their capital contribution, and the liability of the LLP doesn’t impact the Personal Property of the Partners. An LLP provides the advantages of both a Partnership Firm and a Company.
Running an LLP is pocket friendly, as the number of Annual Compliances is much less than, compared to the Private Limited Company. LLP doesn’t need to hold General Meetings, AGMs or Statutory Meetings, the cost of documentation and procedural requirement is less in the case of an LLP.