Business Setup Advisory

LLP Registration

Incorporation of a limited liability partnership, including the LLP agreement.

Usually 10–20 working days, subject to name approval and departmental processing

A limited liability partnership combines the internal flexibility of a partnership with limited liability for its partners. It is a body corporate with perpetual succession, so it continues irrespective of changes among partners.

It suits professional practices and service businesses that want liability protection without the compliance load of a private limited company.

Where an LLP sits between the alternatives

Compared with a partnership firm, an LLP limits each partner's liability to their agreed contribution and gives the business a separate legal identity. Compared with a private limited company, its annual compliance is lighter and its internal arrangements are governed by agreement rather than by a statutory framework.

The trade-off is on raising capital. An LLP cannot issue shares, which makes it a poor fit where outside equity investment is expected.

Annual compliance continues regardless of turnover

An LLP must file its annual return and its statement of account and solvency every year, whether or not it has traded. The penalty for late filing accrues per day and is not capped in the way some other penalties are, so a dormant LLP left unfiled can accumulate a substantial liability.

If the LLP is not going to be used, closing it formally is considerably cheaper than leaving it dormant.

Who needs this

  • Professional practices and service firms wanting limited liability
  • Partnerships converting to a limited liability structure
  • Businesses wanting a separate legal identity without company-level compliance
  • Ventures between two or more people with no immediate plan to raise equity

Eligibility and conditions

  • At least two designated partners, one of whom is resident in India
  • A digital signature for each designated partner
  • A registered office address in India, with proof

What this covers

  • Name approval

    Availability checked and the application filed.

  • Digital signatures and DIN

    Obtained for the designated partners.

  • Incorporation filing

    Application prepared and filed, with queries answered.

  • LLP agreement

    Drafted and filed within the prescribed period.

  • Post-incorporation setup

    PAN, TAN, bank account documents and GST where applicable.

  • Compliance calendar

    The annual filings that now apply.

How the process works

  1. Name and structure

    Proposed names checked and the partner structure settled.

  2. Digital signatures

    Obtained for each designated partner.

  3. Incorporation

    Application filed with the supporting documents.

  4. LLP agreement

    Drafted, executed and filed within the prescribed period.

  5. Set up operations

    PAN, TAN, bank account and GST as applicable.

Documents required

  • PAN and Aadhaar of each partner

    For all designated partners.

  • Photographs

    Recent passport-size photographs.

  • Proof of identity and address

    Of each partner, as prescribed.

  • Registered office proof

    Electricity bill with owner's no-objection certificate.

  • Proposed names

    Two or three options in order of preference.

  • Contribution details

    Agreed contribution of each partner.

The list above is indicative. Additional documents may be required depending on your case and the current departmental requirements.

Frequently asked questions

Should I start as a proprietorship, an LLP or a private limited company?

It depends on who bears the liability, how you expect to fund the business, and how much annual compliance you are willing to carry. A proprietorship is simplest but leaves you personally liable without limit. An LLP limits liability with moderate compliance. A private limited company offers limited liability and the clearest route to outside investment, with the heaviest compliance.

There is no answer that is right for everyone. Tell us what you are planning and we will set out the trade-offs on your facts.

Articles on this topic

Considering an LLP?

Tell us who is involved and what the business will do, and we will set out whether an LLP fits and what incorporation involves.