What is an LLP?
A Limited Liability Partnership (LLP) is a business setup where two or more people join forces to run a company while keeping their personal belongings safe. Each partner is only responsible for the money they have invested, so if the business faces debts, partners won’t have to pay beyond their investment.
Why Register an LLP?
Registering an LLP gives your business a separate legal identity and protects your personal assets from any business risks. It also offers flexibility in managing the business, making it a great option for startups and small businesses that want less paperwork and limited liability.
What Are the Benefits of Registering an LLP?
- Limited Liability Protection: Partners are only liable for the amount they invest, not for business losses or debts.
- Separate Legal Entity: An LLP is legally separate from its partners, allowing it to own property or enter contracts in its own name.
- Easy Compliance: LLPs face fewer rules and filings compared to private limited companies.
- Flexible Management: Partners have the freedom to manage operations directly, without needing a formal board structure.
- No Requirement for Minimum Capital: You can start an LLP with any amount of capital; there’s no minimum needed by law.
- Tax Benefits: LLPs are not subject to dividend distribution tax, and profits are taxed only at the firm level.
Who Can Register an LLP in India?
An LLP can be started by two or more individuals or companies working together. At least two designated partners must be residents of India to meet legal requirements. Foreign nationals or foreign companies can also become partners, but they may need prior approval from the government depending on the sector.
What Documents Are Required for LLP Registration?
- PAN Card of Partners
- Identity Proof (Aadhar Card / Voter ID / Passport / Driving License)
- Address Proof (Bank Statement / Utility Bill)
- Passport-Size Photographs of Partners
- Registered Office Address Proof
- Rent Agreement (if applicable)
- No Objection Certificate (NOC) from Property Owner
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- LLP Name Approval Letter (from MCA)
Step-by-Step Process to Register LLP in India
- Obtain Digital Signature Certificate (DSC): Each designated partner must get a DSC to sign official documents online.
- Apply for Designated Partner Identification Number (DPIN): Partners without a DPIN must apply for one on the MCA website before incorporation.
- Name Approval: Suggest up to two names for your LLP through the MCA portal. The Registrar will approve one if it’s available.
- File Incorporation Form (Form FiLLiP): Submit Form FiLLiP with all required details about the partners, business address, and other basic information.
- Draft and File LLP Agreement: You must prepare and file the LLP Agreement within 30 days of incorporation, outlining partner roles and profit-sharing.
- Obtain Certificate of Incorporation: Once your application is verified, the Registrar issues a Certificate confirming your LLP is officially registered.
Fees for LLP Registration
| Service | Fees (INR) | Description |
| Name Reservation | 200 per application | For reserving proposed LLP names. |
| Incorporation Fee | 500 + stamp duty | Based on LLP capital contribution. |
| LLP Agreement Filing | 200 | Filing the LLP agreement with Registrar. |
| DSC Application | 1000 – 1500 approx. | Per designated partner for Digital Signature. |
Common Challenges in LLP Registration
- Submitting incomplete or incorrect documents can delay your registration. If details don’t match or some papers are missing, your application might get rejected or take longer to process.
- Choosing a name too similar to an existing company or LLP can cause rejection. The Registrar carefully checks names, so if it’s too close to another business, approval may take more time.
- Missing the deadline to file the LLP Agreement can result in penalties. It’s important to submit this agreement within 30 days of registering your LLP to avoid fines.
- Digital Signature Certificate (DSC) issues can hold things up. Without a valid DSC for each designated partner, you can’t submit the forms online through the MCA portal.
Conclusion
Registering an LLP in India is a smart choice for entrepreneurs who want a flexible setup with limited liability. By following the right steps—like getting digital signatures, submitting the incorporation form, and filing the LLP agreement—you can get your business up and running smoothly. LLPs are especially suitable for small and medium businesses that want legal protection without dealing with complex company rules. To stay compliant and avoid penalties, make sure to keep an eye on updates from the official MCA portal.
Suggested Read :
LLP annual filing for startups
Importance of LLP Certificate of Registration
LLP Form 8 Filing and Due dates
Importance of an LLP Certificate
LLP agreement vs Partnership Deed
View Comments
I heard that there's a new entity called "Small LLP" that we could create to reduce all the hassles of maintaining a regular LLP.
If so, can ebizfiling help us in forming a Small LLP?
Hello Mr Gopinath,
Yes, it's true and surely we can help you in forming a small LLP. Our team will get in touch with you soon.
Meanwhile, you can contact our team on +919643203209 or mail us your requirement at info@ebizfiling.com.