Limited Liability Partnership Registration in India
Limited Liability Partnership (LLP) Registration in India – Complete Guide
A Limited Liability Partnership (LLP) combines the benefits of a partnership firm and a private limited company while providing limited liability protection to partners. LLPs are ideal for startups, consultants, small businesses, and professional firms.
📌 Key Features of LLP
✔ Limited Liability – Partners are liable only to the extent of their contribution.
✔ Separate Legal Entity – LLP exists independently from its partners.
✔ No Minimum Capital Requirement – You can start with any amount of capital.
✔ Less Compliance – LLPs require fewer compliances than Pvt Ltd companies.
✔ Tax Benefits – LLPs are taxed at 30% but are exempt from dividend distribution tax (DDT).
1️⃣ Eligibility Criteria for LLP Registration
✔ Minimum 2 Partners (No limit on the maximum number of partners).
✔ At least 1 Partner must be a Resident of India.
✔ Designated Partners must obtain a Digital Signature Certificate (DSC).
✔ Registered Office Address is required (Physical address in India).
2️⃣ Step-by-Step Process for LLP Registration
Step 1: Obtain Digital Signature Certificate (DSC)
🔹 Required for all designated partners.
🔹 Issued by certifying authorities like eMudhra, NSDL.
Step 2: Apply for Director Identification Number (DIN)
🔹 Each designated partner must obtain a DIN (Done via FiLLiP Form).
Step 3: Name Reservation (RUN-LLP Application)
🔹 File Reserve Unique Name (RUN-LLP) Form with MCA.
🔹 Select two unique names related to the business.
Step 4: File Incorporation Documents (FiLLiP Form)
🔹 Partnership Agreement must define:
- Partners’ roles & responsibilities.
- Capital contributions.
- Profit-sharing ratio.
🔹 File Form FiLLiP with MCA for incorporation.
Step 5: PAN, TAN & Bank Account Opening
🔹 PAN & TAN are generated automatically.
🔹 Open a bank account in LLP’s name.
3️⃣ Documents Required for LLP Registration
✔ For Partners:
- PAN Card
- Aadhaar Card
- Passport (for foreign nationals)
- Utility Bill (Latest)
- Bank Statement (Last 3 months)
✔ For Registered Office:
- Rent Agreement (if rented)
- NOC from the owner
- Electricity Bill
4️⃣ Cost of LLP Registration
| Expense | Approximate Cost (₹) |
|---|---|
| DSC (2 Partners) | ₹2,000 – ₹3,000 |
| Name Reservation | ₹1,000 |
| LLP Registration Fees | ₹1,500 – ₹5,000 |
| LLP Agreement Drafting | ₹2,500 – ₹7,000 |
| Professional Fees | ₹5,000 – ₹15,000 |
💡 Total Cost: ₹8,000 – ₹20,000 (varies based on service provider).
5️⃣ Compliance Requirements for LLPs
✔ Annual Filing:
- File Form 8 (Statement of Account & Solvency).
- File Form 11 (Annual Return) before May 30 every year.
✔ Income Tax Filing:
- LLPs must file ITR-5 before July 31.
- LLPs under audit must file before September 30.
✔ GST Registration:
- Mandatory if turnover exceeds ₹40 lakh (₹20 lakh for services).
✔ Audit Requirement:
- If turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.
6️⃣ FAQs on LLP Registration
❓ Can I register an LLP alone?
🔹 No, at least 2 partners are required.
❓ How long does LLP registration take?
🔹 10-15 days if all documents are ready.
❓ Is GST registration required for LLP?
🔹 Not mandatory unless turnover exceeds ₹40 lakh (₹20 lakh for services).
❓ Can LLP be converted into a Private Limited Company?
🔹 Yes, LLP can be converted to Pvt Ltd as per MCA guidelines.
❓ Can an LLP have foreign partners?
🔹 Yes, but at least one Indian resident partner is required.
🔥 Conclusion
LLP is a low-cost, flexible, and tax-efficient option for businesses, making it ideal for startups, freelancers, and consulting firms.
💡 Need help registering your LLP? Let me know! 😊