Company Registration
Limited Liability Partnership
Limited Liability
Corporate Identity
Perpetual Succession
Lower Compliance
Eligibility
- • Two partners
- • Both major
- • At least one Indian citizen
Popular
Basic Package
₹2,999 one-time professional fees*
- DPIN + DSC for two partners
- LLP Agreement
- 1 RUN Name Approval
- LLP PAN + LLP TAN
- Bank account opening documentation support
- Certificate of Incorporation
A Limited Liability Partnership (LLP) is a hybrid business entity combining aspects of a partnership and a company, with an identity separate from its partners. It can own property in its own name, and only the LLP itself is liable for its liabilities — partners have limited liability toward outside creditors, up to their capital contribution. Partners may change over time without affecting the LLP's continuity.
A partnership agreement is entered into at incorporation, covering the mutually agreed duties and rights of all partners. An LLP needs at least two partners and two individuals as Designated Partners (who can be the same people), with at least one an Indian resident. Incorporation and maintenance are simpler than for a company: an LLP can have any number of partners (versus a maximum of 20 for a Partnership Firm), and — unlike an ordinary partnership — one partner is not responsible for another partner's misconduct or negligence. LLPs suit professionals, service providers, and small and medium businesses well.
Conversion
A Partnership Firm can be converted into an LLP if you're a partner planning to formalise the structure. For larger-scale business and easier fundraising, an LLP can in turn be converted into a Private Limited Company.
Taxation of LLP
LLP taxation resembles that of a Partnership Firm: income is taxable at 30% plus 4% Health and Education Cess. Though this is 5% higher than a company's tax rate, an LLP does not pay dividend distribution tax like a company does.
Remuneration and interest from the LLP are taxable in partners' hands (claimable by the LLP as allowable expenditure within Income Tax Law limits), while profit share from the LLP is not taxable for partners.
Registration Process
- 1
Name Approval
Choose a unique name that does not resemble an existing company/LLP or trademark, and get it pre-approved by the MCA — valid for 90 days. Objectives filed here cannot be changed later.
- 2
Digital Signature
Obtain Digital Signatures for subscribers and Designated Partners, required for the DPIN application and incorporation filing.
- 3
DPIN
Apply for the Designated Partner Identification Number using the digital signature, with prescribed ID and address proof attached.
- 4
Application for Incorporation
Submit the incorporation application and declaration by designated partners, with proof of registered address and partners' ID/address proof. Once verified, the Certificate of Incorporation is issued.
- 5
Filing of Agreement
File the LLP Agreement with the ROC within 30 days of incorporation.
- 6
Commencement of Business
Unlike a company, there's no separate commencement certificate for an LLP — it needs to receive the capital mentioned at incorporation.
Documents Required
- PAN Card (mandatory for Indian residents)
- ID proof — Passport, Driving License, or Voter ID
- Address proof — electricity, telephone, or mobile bill, or bank statement
- No Objection Letter and owner's utility bill, for consented premises
- Registered title document or company-name utility bill, for owned premises
- Lease/rent agreement, rent receipt, and owner's utility bill, for rented premises
Frequently Asked Questions
What is a Limited Liability Partnership Agreement?
An agreement made at incorporation between partners and the LLP, determining their rights and duties. Without one, the LLP Act's First Schedule governs the relationship.
Who are the Designated Partners?
Two individual partners designated to be liable for filing returns and documents with the Registrar.
Can an LLP have only one partner?
No, incorporation requires at least two partners.
Can an LLP register a business name?
Yes, an LLP can register its business name through a trademark.
Can an LLP carry out manufacturing activities?
Yes, the MCA has clarified that LLPs are eligible to carry out manufacturing activities.
Who can become a partner in an LLP?
Individuals, LLPs, companies, foreign LLPs, and foreign companies.
Can an LLP hold shares?
Yes — as a separate legal entity that can own property, an LLP can invest in other companies by holding their shares.
Register Limited Liability Partnership
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