Send an Enquiry
A Limited Liability Partnership (LLP) is a popular business structure that combines the flexibility of a partnership with the limited liability protection of a corporation. It is suitable for businesses that want to limit the personal liability of their partners, while still maintaining a flexible management structure.
In India, registering an LLP has become a preferred choice for many entrepreneurs, especially professionals such as lawyers, accountants, and consultants. This guide will walk you through the process of LLP registration in India, the benefits it offers, and the documents required for the registration.
A Limited Liability Partnership (LLP) is a partnership where each partner's liability is limited to their contribution in the partnership. In other words, if the LLP faces financial difficulties or gets sued, the personal assets of the partners are protected. However, partners are still responsible for their own actions, and may be held liable for fraud, illegal activities, or negligence.
LLPs are governed by the Limited Liability Partnership Act, 2008 in India. This structure is ideal for businesses that want to enjoy the benefits of both a partnership and a limited liability company.
Limited Liability Protection: Partners in an LLP enjoy limited liability, which means their personal assets are protected in case the business incurs debts or legal issues.
Separate Legal Entity: An LLP is a separate legal entity from its owners, meaning it can own property, sign contracts, and take legal action in its own name.
Flexibility in Management: LLPs offer flexibility in terms of management and profit-sharing. The partners can decide how they want to run the business, without adhering to the strict rules of a corporation.
Tax Benefits: An LLP is taxed as a pass-through entity, meaning the profits and losses pass through to the partners' individual tax returns, avoiding double taxation.
Ease of Formation: Setting up an LLP is easier and less expensive than registering a company. It requires minimal paperwork and no requirement for a minimum capital contribution.
No Requirement for Mandatory Audits: LLPs are not required to undergo mandatory audits unless their annual turnover exceeds ₹40 lakh, which reduces compliance costs for small businesses.
Two or more partners: An LLP must have at least two partners to form the business. There is no upper limit on the number of partners.
Indian Citizens or Foreign Nationals: Any Indian citizen or foreign national can be a partner in an LLP. However, at least one of the partners must be an Indian resident.
No Minimum Capital Requirement: There is no minimum capital requirement to register an LLP in India, making it accessible for entrepreneurs with limited funds.
Before starting the LLP registration process, make sure you have the following documents ready:
For the LLP Firm:
The process of registering an LLP in India involves the following steps:
These forms must be submitted along with the required documents to the MCA for processing.
After registering the LLP, there are a few compliance requirements that need to be followed:
Maintain Proper Books of Accounts: LLPs must maintain proper books of accounts, and these should be signed by the partners.
File Income Tax Returns: LLPs must file their Income Tax Returns every year, even if the business has not earned income.
GST Registration: If your LLP’s turnover exceeds the GST threshold limit, you must apply for GST Registration.
The cost of registering an LLP in India can vary depending on the number of partners, the state of registration, and other factors. On average, the cost ranges between ₹6,000 to ₹15,000 for the entire process, including government fees, digital signature, and other miscellaneous expenses.
Recent updates include: fully digital registration via the Ministry of Corporate Affairs (MCA) V3 portal; mandatory e-KYC using Aadhaar + PAN for partners; faster name approval via the “RUN-LLP” service; and mandatory disclosure of beneficial owners.
With documents ready, the process can often be completed in about 1–2 weeks from start to finish. Name approval may be instant, DSC/DIN and incorporation follow in days.
Not automatically. As of 2025: audit becomes mandatory if the LLP’s turnover exceeds ₹40 lakh or capital contribution exceeds ₹25 lakh (or whichever threshold applies as per rules) for that year.
Some of the important dates:
Yes, foreign nationals including NRIs can be partners in an LLP in India, but there must be at least one partner who is an Indian resident as per local rules. (Standard guideline)
No fixed minimum capital requirement is needed to form an LLP in India — one of its advantages.
Late filing leads to penalties (for example, daily fines) and may result in complications like partner liabilities or dormant status. For 2025 compliance, timely filing is essential.
Yes. After incorporation, the LLP must prepare and register the LLP Agreement. With updated rules, it can be digitally signed and e-stamped.
Yes, the LLP name must end with either “Limited Liability Partnership” or “LLP” (not just “Limited” or “Pvt. Limited”). Also the name should be unique and follow MCA’s naming guidelines.
While the structure remains cost-effective, filing fees and digital infrastructure have been updated. For example, the contribution-based fee norms remain (see rules from 2022) and digital filings may reduce professional costs.
