LLP Full Form, Perks & Requirements

April 30, 2025
Registrationwala

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LLP Full Form, Perks & Requirements

LLP Full Form, Perks & Requirements

April 30, 2025

Registrationwala

LLP full form is Limited Liability Partnership. It is a popular business structure among entrepreneurs in India. In an LLP, two or more partners share ownership and enjoy limited liability protection. Limited Liability Partnership Act 2008 governs all the LLPs in India.

What is the Full Form of LLP?

LLP full form is Limited Liability Partnership. The LLP Act 2008 introduced the concept of LLPs in India. In an LLP, all the partners have limited liability, meaning they are not personally liable for the debts or actions of the business beyond their own contributions. Handoo and Handoo was the very first LLP to be established in the country. It was established in April 2009.

To incorporate an LLP, the FiLLiP form needs to be filed via the official Ministry of Corporate Affairs (MCA) portal. This form is required for name reservation and incorporation of the LLP. After filing FiLLiP, the LLP agreement must be filed with the Registrar of Companies. If all the documents are found to be satisfactory, the Registrar of Companies officially recognizes the LLP as a legal entity and issues a Certificate of Incorporation.

Perks of LLP Registration

The perks of LLP registration are as follows:

The biggest advantage of an LLP is that it provides limited liability protection to all the partners.
In an LLP, there’s absolutely no minimum capital requirement. Partners can form an LLP with the least possible contribution. Moreover, this contribution can be in the form of tangible or intangible assets, including movable or immovable property.
While an LLP must have at least two partners to be registered, there is no cap on the maximum number of partners allowed. This offers more flexibility compared to private limited companies, which are limited to a maximum of 200 members.
Registering an LLP is generally more cost-effective than incorporating a private or public limited company. Although the gap in registration fees has narrowed over time, LLPs still tend to be more affordable.
Unlike private and public companies, which are required to have their accounts audited irrespective of their capital, LLPs are only obligated to conduct audits under specific conditions. An LLP is required to undergo a tax audit only if its annual contribution exceeds Rs. 25 lakhs or its turnover surpasses Rs. 40 lakhs. This reduced compliance burden is seen as a major advantage.
The process of registering an LLP is typically easy and can be completed online via the official MCA portal.
A Limited Liability Partnership is a separate legal entity from its owners. This allows it to enter into contracts, hold property and sue and be sued in its own name.
Transferring ownership in an LLP is a relatively easy process as compared to other business forms.
An LLP has perpetual succession, meaning it continues to exist even if there are changes in its partners as a result of death, bankruptcy, or the addition/removal of partners.

Requirements to Start an LLP

To start an LLP in India, here are some mandatory requirements:

A minimum of two individuals is required to establish an LLP.
Each designated partner of an LLP must obtain a Digital Signature Certificate (DSC) and a Designated Partner Identification Number (DPIN).
Specific documents must be collected from all partners, such as PAN cards, proof of address, and recent passport-sized photographs.
Information regarding the registered office address must be submitted.
Recent utility bills, like electricity or water bills, are essential as address proof.
A Valid Rental Agreement and a No Objection Certificate (NOC) from the property owner are also mandatory.
The LLP registration form FiLLiP must be filed via the MCA portal.
The LLP business must be issued a certificate of incorporation by RoC to be recognized as a legal business entity in India.

Conclusion

An LLP is a type of business entity registered under the LLP Act 2008. A minimum of two partners are required for LLP formation. For entrepreneurs, LLP is one of the best business structures as it offers limited-liability protection. Additionally, there is no minimum capital requirement to incorporate an LLP. To register your LLP in India, connect with Registrationwala’s LLP registration consultants! We can help you file the FiLLiP form with MCA and assist you to secure a certificate of incorporation in a smooth and timely manner.

Frequently Asked Questions (FAQs)

Q1. What is LLP full form in company?

A. LLP full form in company is Limited Liability Partnership.

Q2. Which Act governs LLPs in India?

A. The LLP Act 2008 governs LLPs in India.

Q3. Which LLP was the first LLP to be incorporated in India?

A. In 2009, Handoo and Handoo became the first LLP to be incorporated in India.

Q4. When is an LLP required to undergo a tax audit?

A. An LLP is required to undergo a tax audit if its annual turnover crosses Rs. 40 lakhs or its capital contribution crosses Rs. 25 lakhs.

Q5. Is it mandatory to register an LLP business with MCA in India?

A. Yes, registration with MCA is mandatory for any business operating in India as an LLP.

Q6. Which form needs to be filed for LLP registration?

A. For LLP registration, the FiLLiP form needs to be filed via the official Ministry of Corporate Affairs (MCA) portal.

Q7. Who issues Certificate of Incorporation to LLPs in India?

A. The Registrar of Companies issues a certificate of incorporation to LLPs in the country.

Q8. Apart from LLPs, which other business structures offer limited liability protection?

A. In addition to LLPs, both Private Limited Companies and One Person Companies offer limited liability protection. This means the personal assets of the owners are generally protected from business liabilities.

LLP Full Form, Perks & Requirements