Limited Liability Partnership Registration

What is an LLP?

An LLP (Limited Liability Partnership) is a business structure that blends the flexibility of a partnership with the limited liability company. Key features:

• It is an independent legal entity to its partners.

• Partners have limited liability: their personal assets are generally protected.

• No minimum capital requirement in many cases (unlike some company structures).

• Flexible internal management (partners can decide how to run it). 

Why choose an LLP in 2025? 

• Growing popularity: Registrations of LLPs in India are rising strongly. For example, in April 2025, total LLPs registered were ~394,818 (up ~19% year-on-year). Also, in May 2025, registrations rose ~37% for LLPs. This means more entrepreneurs are choosing LLP structures.

• Easier/More digital process: In 2025 the process is more streamlined with digital filings, mandatory e-KYC, etc.

• Better transparency & governance: Regulatory updates are requiring beneficial ownership disclosure, more compliance, etc. 

• Lower compliance burden (relative to companies): That’s one reason why many prefer LLP over a Private Limited company. 

Learn more about : Limited Liability Partnership

Step-by-Step Process to Register an LLP in India 

Step 1: Obtain Digital Signature Certificate (DSC)

• Before starting the registration procedure it's essential to obtain Digital Signature Certificates from designated partners involved in the proposed Limited Liability Partnership. Digital signatures become essential because LLP documentation must be submitted through online platforms which need secure electronic signatures. Certificate holders must acquire their digital signature certificates by receiving them from government approved certifying agencies. A certified agency list follows below. Different government-approved certifying agencies determine the prices for obtaining digital signature certificates. You need to get DSC in class 3 category as part of your application process. 

Step 2: Designated partner identification number (DPIN)

• Applications have to be submitted to DPIN the partners LLP propose to designate.  To receive the DPIN allocation you should apply using Form DIR-3. Each application requires attaching a scanned version of your Aadhar Card and PAN Card documents to the Form. A Company Secretary or Cost Accountant or Chartered Accountant working full time must sign this form. 

Step 3: Name Approval

• RUN-LLP functions as an application system to obtain reservations of proposed LLP names and the Central Registration Centre controls its processing. Before writing an LLP name on the form you must check Ministry of Corporate Affairs (MCA) portal's free name search tool. 

• A search in the system will display names from existing companies/LLPs which match the search conditions supplied by users. The search results show counterparts that will assist you in preventing name duplication. A name for LLP approval will be given by the Central Government to be used for LLP if it seems fitting to them but it is neither similar to the earlier name or the name of association or company or brand name or the LLP name.

• The form allows one opportunity to resubmit within 15 days for correcting identified defects. The LLP can submit two proposed names while making an application. You need to submit your LLP incorporation request.

Step 4: Incorporation of LLP

• FiLLiP stands as the incorporation document and participants must submit it to the Registrar who controls the area where the LLP's registered office stands. An integrated form serves as the incorporation method.

• You need to pay fees per the amount listed in Annexure 'A'.

• Using this form a person not possessing DPIN or Director Identification Number (DIN) can desire the allotment of DPIN in case of a desire to become a designated partner.

• Two individuals comprise the only authorized parties who can submit such applications for name allocation.

• Users can submit their name reservation requests through the online portal FiLLiP.

• Approval of name of the application is provided and name which is going to be reserved after acceptance is published as proposed name of LLP.

Step 5: LLP entities to be filed form 3 i.e. Limited Liability Partnership agreement

• An LLP agreement sets boundaries for both partnership relations among members and between the partnership and its members.

• The MCA portal requires all LLP agreement documents to be submitted using Form 3 in electronic format.

• Exceptions in the case of LLP agreement filings result in notification in a time span of 30 days counting since incorporation.

• All LLP Agreements need to appear on Stamp Paper for legal validity. A different stamp duty value exists for Stamp Paper depending on each state.

Key Updates/Changes in 2025

• Fully digital registration via the MCA V3 portal.

• The Aadhaar + PAN e-KYC is mandatory on specified partners.

• Quick approval of names through improved RUN-LLP service.

• In most instances LLP Agreement can be signed and e-stamped (no submission) digitally.

• LLPs: Declaration of beneficial ownership.

• Increased compliance and increased audit / disclosure standards (size-based).

• In case there were delays in the filing because of portal problems, MCA has provided some relief (such as extension of deadline).

Benefits of Registering an LLP

• Limited liability: protects personal assets of partners in many situations.

• Separate legal entity: the LLP can own property, incur debt, enter contracts in its own name. 

• Flexibility: The internal governance is not as rigid as companies (board meetings, etc.).

• No or low minimum capital: Easier for small entrepreneurs.

• Perpetual succession: even if a partner leaves, the LLP continues. 

• Less compliance than many companies: In many cases, fewer mandatory disclosures than a Private Limited Company. 

Things to Be Careful About / Disadvantages

• Although lower than companies, LLPs still have compliance obligations (annual returns, accounts, etc).

• Some funding/venture capital may prefer private limited companies rather than LLPs, since companies may easily raise equity.

• For large businesses or complex structures, an LLP may have limitations (for instance, transfer of ownership may be more complex).

• Some costs (DSC, Agreement drafting, professional fees) still apply.

• After registration, your business data may be publicly visible and you might receive many unsolicited calls/offers. 

Typical Documents & Information Required

Here’s a simplified list of what you’ll generally need:

• Identity proof (PAN, Aadhar) and address proof of all partners (especially designated partners).

• Proof of registered office address (e.g., utility bill, lease, consent letter if premises owned by someone else).

• Digital Signature Certificate for each designated partner.

• LLP Agreement (detailing contributions, profit sharing, rights & duties of partners).

• Proposed name of the LLP (and checks for uniqueness).

• Business activity description.

• Subscription to capital / contributions by partners.

• If outside India (NRI partner) additional documents may be required.

• After incorporation: registration number, LLP certificate, and opening bank account etc.

Approximate Cost & Time (Indicative)

• Government fees + professional fees together may range: on the one hand, it costs you less when you do it by yourself; on the other, it can be more expensive when a service provider is employed. People on forums quote 7000 to 20000 on a basic registration of LLP (omitting compliance thereafter) 2 partner LLP.

• Time: The approval of new digital process name (2025) can be fast, and incorporation may occur in several days, when all documents are in order. The digital transformation has minimized hand delays.

• Important: It might involve extra expenses on registration of GST, Shop and Establishment license (state-wise), modifications in the future etc.

Post-Registration Compliance: What You Must Do Each Year

• File Form 11 (Annual Return) for LLP. 

• File Form 8 (Statement of Accounts & Solvency). 

• Maintain books of accounts.

• If any changes in partners, address, business activities  file relevant updates with Registrar within prescribed time. 

• Ageing: For larger LLPs, audits may be required based on turnover/partners etc. The new updates emphasise stricter disclosures. 

• Make sure you keep digital records of decisions, agreements etc.

Checklist: Easy Steps for “Normal Person” to Follow

• Choice: Do you understand LLP is the right organization? (solo proprietor, company)

• Select 2 or more partners, designate as such.

• Get DSCs and DIN/DPIN (where necessary).

• Check name- Check satisfies the requirements of the name (ends in LLP etc.) & register through RUN-LLP.

• Draft LLP Agreement (part of profits, functions, input).

• Select registered office address and obtain address evidence.

• Mycompany Internet portal (MCA V3) of mycompany (MCA) → FiLLiP Form + fill documents + pay fees.

• post incorporation: take certificate, open banking account in the name of LLP.

• post incorporation: accept certificate, open banking account under the name of LLP.

• Be aware of state or local registrations (GST, Shops & Establishment, trade license as required).

Final Thoughts

Registering an LLP in 2025 is much easier and more digital than in earlier years. If you follow the steps carefully and keep up with compliance, it offers a flexible and suitable structure for many small/mid-size businesses.

However, don’t underestimate the importance of proper docs and record-keeping. Even though compliance is lighter than a full blown company, it should not be ignored.

If you like, I can draft a ready-to-use template (for example: LLP Agreement template, list of forms with links, a timeline chart) for you — would you like that?

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