What is an LLP?
A Limited Liability Partnership (LLP) is a hybrid business structure that combines the flexibility of a partnership with the limited liability protection of a company. Governed by the LLP Act, 2008, it is ideal for professionals like CAs, lawyers, architects, and consultants, as well as service-based businesses.
Key Benefits
- Partners' personal assets protected from LLP liabilities
- No minimum capital requirement
- Lower compliance burden than a Private Limited Company
- No mandatory audit unless turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh
- Profits taxed at partner level — no dividend distribution tax
- Flexible profit-sharing ratio between partners
- No requirement to hold board meetings or AGMs
- Easy to add or remove partners
Eligibility
- Minimum 2 designated partners required
- At least one designated partner must be an Indian resident
- No maximum limit on number of partners
- Foreign nationals can be partners (subject to FDI norms)
- No minimum capital contribution required
Registration Process
1
Name Reservation (RUN-LLP)
Apply for LLP name through MCA portal. Name must end with "LLP" or "Limited Liability Partnership".
2
DSC for Designated Partners
Digital Signature Certificates obtained for all designated partners.
3
DPIN for Partners
Designated Partner Identification Numbers obtained for all designated partners.
4
LLP Agreement Drafting
LLP Agreement drafted covering profit-sharing, roles, responsibilities, and exit clauses.
5
FiLLiP Form Filing
Form for Incorporation of LLP filed with MCA along with LLP Agreement and supporting documents.
Documents Required
PAN Card of all partners
Aadhaar Card of all partners
Passport-size photograph
Address proof of partners
Registered office proof
NOC from property owner
Proposed LLP name
LLP Agreement draft
Annual Compliance for LLP
- Form 11 (Annual Return): Filed by 30th May every year
- Form 8 (Statement of Accounts): Filed by 30th October every year
- Income Tax Return (ITR-5): Filed annually
- Tax audit mandatory if turnover exceeds ₹40 lakh
- DIN eKYC for designated partners: By 30th September