Shweta Saboo & Co.

Limited Liability Partnership

A Limited Liability Partnership (LLP) is a modern business structure introduced in India under the LLP Act, 2008. It combines the flexibility of a traditional partnership with the benefits of limited liability for its partners.

Unlike a traditional partnership, an LLP is a separate legal entity, meaning it can own property, incur debts, and sue or be sued in its own name. Ideal for startups, service providers, consultants, and professional firms, an LLP offers operational flexibility with reduced regulatory compliance compared to private limited companies.

Key Features

Separate Legal Entity: An LLP has its own legal identity, distinct from its partners.
Limited Liability Protection: Partners’ liability is limited to their agreed contribution. Their personal assets are protected from business liabilities.
Flexible Management: Partners can manage the business directly without needing a formal board of directors, offering more flexibility in operations.
No Minimum Capital Requirement: An LLP can be started with any amount of capital, depending on the business needs.
Reduced Compliance: Compared to private companies, LLPs have fewer compliance requirements, making it easier and more economical to maintain.
Perpetual Succession: The LLP continues to exist even if partners change or leave.
Tax Benefits: LLPs enjoy pass-through taxation, meaning profits are taxed only at the LLP level and not again at partner level (no dividend distribution tax).

Our Process

Obtain DSC

Partners must first get their DSCs to digitally sign incorporation documents.

Apply for DIN

DINs are required for all Designated Partners and are applied for through the incorporation form.

Name Approval

Reserve a unique LLP name through the RUN-LLP service provided by the MCA.

File Incorporation Form (FiLLiP)

Submit the Form FiLLiP (Form for incorporation of LLP) along with partner and office details.

Draft and File LLP Agreement

After incorporation, partners must draft the LLP Agreement outlining roles, responsibilities, profit-sharing ratio, and file it within 30 days.

Obtain PAN and TAN for LLP

Apply for the LLP's PAN and TAN for taxation and compliance purposes.

Documents Required

To make it easier, we have listed all the documents required for Limited Liability Partnership registration.

PAN Card for all the partners
Aadhaar Card for all the partners
Passport-size Photograph of all the partners
Address Proof (Bank Statement/Electricity Bill/Telephone Bill — recent)
Proof of Business Address (Electricity Bill/Water Bill/Property Tax Receipt)
Rent Agreement (if rented premises) + No Objection Certificate (NOC) from landlord
LLP Agreement (to be filed with MCA within 30 days of incorporation)

FAQs

What is a Limited Liability Partnership (LLP)?

A Limited Liability Partnership (LLP) is a business structure that combines the benefits of a partnership and limited liability of a company, offering flexibility in operations with reduced personal risk for partners.

What are the minimum requirements to register an LLP in India?

An LLP requires a minimum of two partners, and at least one of them must be a resident of India. There is no upper limit on the number of partners.

Is there any minimum capital requirement for starting an LLP?

No, there is no minimum capital requirement to start an LLP. Partners can start the LLP with any amount of capital contribution as agreed between them.

Is it mandatory to register an LLP?

Yes, registration of an LLP with the Ministry of Corporate Affairs (MCA) is mandatory under the LLP Act, 2008, to legally start its operations.

What are the documents required to register an LLP?

Documents required include PAN card, address proof, identity proof of partners, photographs, proof of registered office address, and the LLP Agreement.

What is an LLP Agreement?

The LLP Agreement is a legal contract between the partners outlining the rights, responsibilities, profit-sharing ratio, and rules governing the LLP's operations.

What are the annual compliance requirements for an LLP?

An LLP must file an Annual Return (Form 11), Statement of Accounts & Solvency (Form 8), and Income Tax Return every financial year. Additional filings may apply based on turnover and activities.

Can a foreign national or NRI become a partner in an LLP?

Yes, a foreign national or NRI can become a partner in an LLP, provided at least one designated partner is a resident of India.

Can an LLP be converted into a Private Limited Company?

Yes, an LLP can be converted into a Private Limited Company by following the specific procedures prescribed under the Companies Act and applicable rules.

What are the advantages of forming an LLP?

LLP offers limited liability protection, separate legal entity status, minimal compliance burden compared to private companies, and operational flexibility to partners.