LLP Registration in India

A Limited Liability Partnership is a body corporate registered under the LLP Act, 2008. It has a legal identity separate from its partners, so it can own property and contract in its own name, while partners are liable only to the extent of the contribution they have agreed to bring in.

An LLP suits a business run by the people who own it, where profit sharing is negotiated between partners and there is no plan to raise equity investment. Professional practices, consultancies and partner-operated service firms are common examples. If you expect to take on investors, a Private Limited Company is the more workable structure.

At least two partners, with no upper limit. At least two of them must be designated partners, who must be individuals and carry the responsibility for statutory compliance, and at least one designated partner must be a resident of India.

Designated partners are the partners specifically responsible for the LLP's compliance obligations, including its ROC filings. They must hold a DPIN and a digital signature. Every LLP needs at least two, and at least one must be resident in India. Ordinary partners share in profits and management without carrying that statutory responsibility.

PAN, Aadhaar, identity proof, recent address proof in the partner's own name and a photograph for each partner, along with proof of the registered office address, a rent agreement if the premises are rented and a no-objection certificate from the owner.

Digital signatures are obtained for the designated partners, the name is reserved through RUN-LLP, the FiLLiP incorporation form is filed with the Registrar, the Certificate of Incorporation is issued with an LLPIN, and the LLP Agreement is executed on stamp paper and filed in Form 3 within 30 days of incorporation.

Yes. The LLP Agreement must be filed in Form 3 within 30 days of incorporation. If no agreement is filed, the default provisions in the First Schedule to the LLP Act apply, which divide profits and management rights equally regardless of what the partners actually intended.

An LLP cannot issue equity shares or create an ESOP pool, which rules it out for venture funding. In exchange it carries lighter compliance: no board or general meetings, and audit only once turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh. A Private Limited Company requires a statutory audit from its first year regardless of turnover.

A partnership firm under the Indian Partnership Act, 1932, is not a separate legal entity and its partners carry unlimited personal liability, including for each other's acts. An LLP is a body corporate with limited liability, and a partner is not personally liable for another partner's wrongful acts. An LLP must file annually with the Registrar of Companies, which a partnership firm does not.

Form 11, the annual return, is due by 30 May each year, and Form 8, the statement of account and solvency, by 30 October. Both are due even in a year with no business activity. Accounts must be audited if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh. Late filing attracts an additional fee that steps up with the length of the delay.