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Limited Liability Partnership (LLP)

What is an LLP ?

An LLP is a separate legal entity where the liability of partners is limited to their agreed contribution. Unlike traditional partnerships, one partner is not liable for the actions or negligence of another partner. This makes LLPs a popular choice for professionals, consultants, startups, and businesses with multiple founders.
Key Features of an LLP :
Separate Legal Identity : An LLP can own property, sue, or be sued in its own name.
Limited Liability : Partners are only liable to the extent of their capital contribution.
Flexible Structure : It allows internal structure and management flexibility.
Perpetual Succession : LLPs continue to exist regardless of changes in partners.
Less Compliance Burden : Compared to private limited companies, LLPs require fewer formalities.
No Minimum Capital Requirement : You can start an LLP with any amount of capital.

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Limited Liability Partnership (LLP) Registration in India

A Limited Liability Partnership (LLP) is a unique form of business entity that combines the flexibility of a partnership with the benefits of limited liability typically enjoyed by companies. Introduced under the Limited Liability Partnership Act, 2008, LLPs are ideal for small and medium-sized businesses seeking operational freedom, fewer compliance requirements, and limited liability protection.

Who Can Register an LLP?

Minimum 2 partners required (no maximum limit).
At least one Designated Partner must be an Indian resident.
Individuals, body corporates, or a combination of both can become partners.

LLP Registration Process:

Obtain DSCs and DINs for all designated partners.
Name Reservation through the RUN-LLP form.
Filing of Incorporation Documents with the Ministry of Corporate Affairs (MCA).
LLP Agreement drafting and filing (within 30 days of incorporation).
Get your LLP Certificate of Incorporation.

Benefits of Forming an LLP:

Protection from personal liability
Better credibility with clients and investors
Ideal for professionals and service-based businesses
Easy ownership transfer and partner exit process
Cost-effective and simple to maintain