A Limited Liability Partnership combines the flexibility of a partnership with limited liability for its partners. It is registered under the LLP Act, 2008.
Who it suits
Professional firms, small and medium businesses and family businesses that want limited liability without the full compliance load of a company.
Basic requirements
- At least 2 partners, with at least 2 designated partners, of whom at least one is a resident in India.
- A unique LLP name.
- A registered office in India.
- An LLP agreement among the partners.
- There is no minimum capital requirement.
The process
- Digital signature certificates for the designated partners.
- Name reservation.
- Incorporation filing (FiLLiP) with the Registrar.
- Certificate of Incorporation.
- Filing the LLP agreement within the prescribed time after incorporation.
Registration typically takes 7–10 working days, depending on document readiness and ROC processing.
Yearly compliance
An LLP files an annual return and a statement of accounts and solvency with the Registrar, and files its income tax return. A statutory audit applies once turnover or contribution crosses the prescribed limits.
Common questions
Is an LLP better than a Private Limited Company?
It depends. An LLP has lighter compliance, while a Private Limited Company is generally preferred when raising investment. We can compare both for your case.