Want to start a partnership while having limited liability protection for your personal assets against business debts and liabilities? Then, opt for LLP registration. By registering an LLP, you and the other partners can enjoy limited liability protection, subject to the applicable provisions of the LLP Act. Connect with Registrationwala for assistance in filing your LLP registration application online with ease.
Here’s how we can assist you:-
🔸DIN, DSC & LLP Name Approval
🔸FiLLiP & Form 3 Filing
🔸Application Review & Corrections
🔸Certificate of Incorporation Assistance
🔸LLP Agreement Drafting Support
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Limited Liability Partnership Registration Process
Here is a quick overview of the main requirements and important details for LLP incorporation in India:-
|
Parameter |
Legal Requirement |
|
Governing Authority |
The Ministry of Corporate Affairs (MCA) & Registrar of Companies (ROC) govern the LLPs in India. |
|
Governing Statute |
The Limited Liability Partnership Act, 2008, as amended from time to time. |
|
Minimum Members |
A minimum of 2 Designated Partners are required for LLP registration. At least 1 of them must be a Resident Indian. |
|
Minimum Partners’ Contribution |
There is no official minimum partners’ contribution requirement. The partners can start an LLP with as little as Re. 1. |
|
Mandatory Filings |
Integrated FiLLiP Form (LLP Incorporation Form) & Form 3 (LLP Agreement Form) |
|
Audit Requirement |
Exempt if LLP’s Turnover < Rs. 40 Lakhs or Capital Contribution < Rs. 25 Lakhs |
Limited Liability Partnership, otherwise known as LLP, is a modern business structure that combines flexibility of a traditional partnership with limited liability protection provided by a company. It is regarded as a separate legal entity from its partners. A minimum of two partners are required to establish an LLP. Additionally, at least one of them must be a resident of India.
To set up an LLP in India, partners must mandatorily register it with Registrar of Companies. The registration process involves filling out FiLLiP form along with necessary details and filing it online via MCA portal. Without registration, a business entity cannot be recognised as an LLP.
The Limited Liability Partnership Act, 2008 is the primary piece of legislation governing LLPs in India. This Act, along with LLP agreement, lays down legal framework for formation, management, rights, duties and obligations of LLP as well as its partners.
Incorporating an LLP in India opens doors to several benefits. Some of these benefits are stated below:-
One of the most attractive benefits of an LLP registration is limited liability protection it offers to all its partners. Unlike a partnership firm that places unlimited liability on its partners in case of business losses or liabilities, a limited liability partnership generally limits liability of its partners to their agreed contribution to LLP, subject to provisions of LLP Act, 2008.
Another compelling benefit of LLP registration online is that once an LLP is incorporated, it is regarded as a separate legal entity from its partners. Therefore, it can own property, enter into contracts and sue in its own name.
If you want to establish an innovative startup and get DPIIT recognition, then the good news is that an LLP is one of the recognised entity types eligible to apply for DPIIT recognition.
An LLP business requires a mandatory LLP Agreement. This is actually a benefit as the agreement, very clearly, lays down rights and responsibilities of partners and helps reduce confusion and disputes. In case of a legal dispute, it can also serve as important evidence of agreed terms.
An LLP can be registered with just two partners. What’s more, there is no maximum limit on number of partners who can join an LLP.
Compared to private limited companies, LLPs tend to have more relaxed compliance requirements and do not have same mandatory board meeting requirements.
A statutory audit is not mandatory for an LLP unless its turnover exceeds Rs. 40 lakhs or its partners’ contribution exceeds Rs. 25 lakhs.
The eligibility criteria for LLP registration in India are clearly stated below:-
To incorporate a limited liability partnership in India, at least 2 designated partners are required. Out of these partners, at least one needs to be a resident of India.
The proposed business name for LLP must be unique and conform to MCA naming guidelines.
The LLP’s registered office address must be located in India. This address can be either residential or commercial.
To register an LLP in India, certain documents are required from designated partners as well as for the registered office. These documents may vary depending on circumstances of LLP. The commonly required documents are listed below:-
The LLP registration process is an online process that needs to be completed via MCA V3 portal. Below, we have explained all the general steps that are involved in this process:-
First, the applicant must gather and prepare all the necessary documents, such as proof of the registered office address, NOC from property owner, PAN cards, identity and address proofs of the partners among other documents. A Digital Signature Certificate (DSC) is also required for designated partners as it is used to digitally sign LLP incorporation documents.
In this step, the applicant can reserve a unique name for LLP via MCA’s RUN-LLP service. Alternatively, the proposed name can also be applied for directly via integrated FiLLiP form.
Then, the applicant must submit the FiLLiP e-form via MCA V3 portal along with required partner and office details.
The ROC then verifies the application as well as submitted documents. Once the application is approved, the ROC issues the Certificate of Incorporation (CoI) along with LLPIN. PAN and TAN are also allotted to LLP in this very step.
After incorporation of LLP, the partners must execute the LLP Agreement and file the details of such an agreement with the ROC through Form 3 within 30 days of incorporation. The LLP Agreement contains rights, duties, responsibilities, profit-sharing ratio and other terms agreed upon by partners among other important provisions.
Compliance isn’t required only during LLP registration. It is also required continuously after incorporation. Below, we have explained some of most common compliance requirements for LLPs in India:-
Form 3 (LLP Agreement):- This form must be filed within 30 days of incorporation of LLP. Delay in filing this form attracts a late fee.
Form 11 (Annual Return):- Form 11 must be filed within 60 days from the closure of the financial year, i.e., by 30th May. Delay in filing Form 11 attracts a late fee.
Form 8 (Statement of Account & Solvency):- Form 8 must be filed within 30 days from the end of six months of the financial year, i.e., by 30th October. Late fee is applicable when there’s a delay in filing this form.
We, at Registrationwala, provide end-to-end solutions for Limited Liability Partnership registration in India. Our services include:-
DIN, DSC & LLP Name Approval
Submission of FiLLiP Form (LLP Incorporation) & Form 3 (LLP Agreement)
Review of LLP application and making changes, if needed
Assistance in obtaining Certificate of Incorporation in your LLP’s name
Support in drafting LLP agreement
Thus, if you are looking for services for the formation of a Limited Liability Partnership without paying high professional fees, you can call our LLP consultants at Registrationwala.
No, that’s certainly not the case for every LLP. Such an entity needs a statutory audit only when its annual turnover is more than Rs. 40 lakh or its total contribution is more than Rs. 25 lakh.
LLP registration usually takes around 7 to 10 working days. However, the actual time can vary depending on factors like time taken for name approval, document verification and MCA processing.
Yes. A residential property can be used as the LLP’s registered office. You generally need to submit documents such as a recent utility bill and NOC from the owner, where applicable.
Form 3 should generally be filed within 30 days of incorporation for initial LLP Agreement. If this agreement is filed late, late fee is applicable.
The concept of a Small LLP was introduced under the LLP Amendment Act, 2021. It refers to an LLP where the contribution of partners does not exceed Rs. 25 lakh and the annual turnover does not exceed Rs. 40 lakh, subject to limits and conditions prescribed under law.
A limited liability partnership agreement, abbreviated as an LLP agreement, is a legal document that lays down the LLP partners’ mutual rights, duties and obligations alongside the internal operational and management rules of business. It is basically a legal contract between LLP and its partners.
The LLP Act, 2008 came into force on 31 March, 2009.
Yes. An LLP agreement is mandatory for each and every LLP in India.
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