Govt. Charges As applicable
Name of the Proposed LLP
Significance of the Name
Objective of the Business
DIN of Partners (if available)
Class II Digital Signatures
KYC of partners
Authorised Capital Contibution
Address of Registered Office alongwith proofs
NoC from the owner of the Registered Office of the LLP
Limited Liability Partnership (LLP) is the firm registered in India under the Limited Liability Partnership Act, 2008 where unlike in the case of Partnership Firm the liability of the partners is limited to the amount of their agreed financial contribution. However, LLP is fully liable for its debts and contractual obligations.
Section 2(1)(n) defines LLP as a partnership formed and registered under the LLP Act, 2008. LLP is the combination of the features of Partnership Firm and Private Limited Company.
Key benefits of registration of LLP in India are it creates a separate legal entity, perpetual succession, Mutual rights & duties between the partners.
Choosing LLP instead of any other type of entity is more advantageous for any business. Here we have explained some of the advantages of registration of LLP in India.
Limited Liability Partnership are comparatively easy to form and manage in India having simple registration process and less formalities. with the Ministry of Corporate affairs.
An LLP can be started with a minimum amount of capital money. The capital can also be in the form of an asset other than monetary contribution.
An LLP is managed on the basis of the terms and conditions incorporated in the LLP Agreement through mutual consent of the partners.
An LLP needs a minimum of 2 partners, whereas there is no limit on the maximum number of partners unlike in case of a normal partnership firm and a Company.
An LLP has the capacity to initiate a legal proceedings against any person or entity in its own name before the court of law.
It is one of the most important reasons for formation of a LLP instead of a partnership firm since LLP continues even if the partners of the LLP changes, there is no need to go through the dissolution process.
There are some basic legal requirements for registration of LLP in India to be kept in mind before the registration process.
These are the documents requirements for registered office proof of LLP in India
A Limited Liability Partnership (LLP) is considered as the most benefited legal entity in terms of tax benefits and compliances of rules & regulations. LLP generally taxable at the rate of 30% and surcharged at the rate of 12% if total income exceeds ₹1 Cr and compulsory 4% of Health & Education Cess. We have discussed some of the major tax benefits of LLP in India.
When the profits are distributed to the partners it is not taxable in the hands of the partners. In other words, profit distribution to the partners is tax free.
Payments made to partners such as Salary, Bonus, Commission or Remuneration is allowed as deduction under the Income Tax Act.
Interest paid to partners on capital contribution is exempt up to 12% per annum, subject to any condition given in the LLP Agreement.
Interest paid to partners on capital contribution is exempt up to 12% per annum, subject to any condition given in the LLP Agreement.
Unlike in the case of Pvt. Ltd. Companies, LLP enjoys lower compliances requirements which leads to lower cost of compliances of LLP.
In case of LLP the Business losses and Unabsorbed depreciation can be carried forward to the future periods and set off against any profits earned in future subjects the conditions given in the provision.
The following partners can be appointed as Designated partner in the LLP:
The following partners disqualified to be appointed as Designated partner in the LLP:
A Limited Liability Partnership is registered under the provisions of the LLP Act, 2008 with the Ministry of corporate Affairs through the procedure prescribed under the Act and Rules and Regulations made there under.
Name of the proposed LLP will be applied in E-Form -1 of the LLP with the concerned Registrar of Companies (ROC) by the Partner already having a valid DPIN (Designated Partner Identification Number), thereafter after processing of same approval or rejection will be communicated to the applicant by the ROC. To avoid rejection of the name the name should be as per the guidelines provided under Companies (Incorporation) Rules, 2014. The name of the limited Liability Partnership must contain the words "LLP" in the end.
Digital Signatures of the all the partners needs to be obtained for the incorporation of the LLP. For obtaining the Digital Signatures following KYC details are required:
Once the name gets approved by the department, the documents are prepared as per the guidelines given under the Act / Rules for the incorporation of the LLP.
E-Form - 2- shall be filed for the incorporation of the LLP. The said form contains all the details of the proposed LLP, Partners/Designated Partners details, Consent of the partners/Designated partners.
After E-Form-2 has been filed with the ROC, and if all the details are as found to be satisfying, the concerned ROC shall issue a Certificate of Incorporation to the LLP.
After the Certificate of Incorporation is issued to the LLP, Designated Partners/Partners are required to execute an LLP Agreement and file the said agreement in E-Form - 3 within 30 days of the Incorporation of the LLP. The LLP Agreement generally contains the following details:
And other miscellaneous clauses may be mutually agreed between the partners/designated partner.
Fees / Cost / Charges of Registering LLP in India is break-down as under:
| Particulars | Fees / Cost / Charges |
|---|---|
| Name Reservation (RUN-LLP) | ₹200 |
| FiLLiP Incorporation Filing Fee | From ₹500 to ₹5,000 |
| LLP Agreement Filing (Form 3) | From ₹50 to ₹5,000 |
| Digital Signature Certificate (DSC) | ₹800 – ₹2,000 per partner |
| DIN / DPIN | Free at the time of incorporation |
| Stamp Duty on LLP Agreement | From ₹500 to ₹10,000 |
| Professional / Consultancy Fees | From ₹3,000 to ₹10,000 |
| Total Amount | From ₹5,000 to ₹35,000 Approx |
Private Limited Company Registration
A Limited Liability Partnership (LLP) is a business structure that combines the benefits of a partnership firm and a company. Partners have limited liability for business debts.
A minimum of two partners is required to register an LLP in India. There is no maximum limit on the number of partners.
No, there is no minimum capital requirement for LLP registration in India. Partners can contribute any agreed amount.
The basic documents include PAN Card, Aadhaar Card, address proof, passport-size photographs, DSC, and registered office proof.
LLP registration generally takes 7 to 15 working days, depending on document verification and MCA approval.
Yes, LLP is an ideal business structure for startups, professionals, consultants, and small businesses due to lower compliance requirements and limited liability protection.
An LLP Agreement is a legal document that defines the rights, duties, profit-sharing ratio, and responsibilities of the partners.
No, the share of profit received by partners from an LLP is exempt from tax in their hands.
Yes, foreign nationals and foreign entities can become partners in an LLP, subject to applicable laws and regulations.
The major benefits include limited liability protection, separate legal identity, perpetual succession, tax advantages, and lower compliance costs.
An LLP provides limited liability protection to its partners, whereas in a Partnership Firm, partners have unlimited liability. Businesses looking for a simpler structure may opt for Partnership Firm Registration.
LLP Registration is suitable for professionals and small businesses seeking compliance flexibility, while Private Limited Company Registration is generally preferred by startups looking for investment and scalability.
