Business Solutions
ISO 9001:2015 CERTIFIED
A Limited Liability Partnership (LLP) is a unique hybrid business structure that combines the benefits of a traditional partnership with the limited liability protection of a company. LLPs are governed by the Limited Liability Partnership Act, 2008 in India. It is one of the most preferred business structures for professionals, startups, and small businesses seeking legal protection with minimal compliance requirements.
Both LLPs and Partnership Firms require a minimum of two partners to be registered. Post incorporation, an LLP can have unlimited partners. In case of a Partnership Firm, if the number of partners reduces below 2 due to death, incapacitation or resignation, the firm stands dissolved. In an LLP, however, if the number of partners reduces below 2, the sole partner can still find a new partner to fill the position without dissolution of the LLP.
One of the main advantages of a Partnership Firm is that there are very minimal compliance requirements — Partnership Firms are not required to file any annual returns, and their financial statements are NOT made publicly available. On the other hand, an LLP requires annual filing of its financial statements with the Registrar of Companies (MCA), and such documents become public records.
The accounts of a registered/unregistered partnership firm are not required to be audited. Whereas, the accounts of a Limited Liability Partnership (LLP) are required to be audited by a practising Chartered Accountant when the turnover exceeds ₹40 lakhs per annum or when capital contribution exceeds ₹25 lakhs.
Partners' personal assets are protected. Liability is limited to the capital contribution in the LLP.
An LLP has its own legal identity separate from its partners — it can own assets and enter contracts independently.
Audit is required only when turnover exceeds ₹40 lakhs or capital contribution exceeds ₹25 lakhs.
Partners can customize profit sharing, management roles, and responsibilities through the LLP Agreement.
Ownership can be transferred easily by admitting new partners or through changes in the LLP Agreement.
The LLP continues to exist regardless of change in partners — it does not dissolve on death or exit of a partner.
Obtain Digital Signature Certificates for all designated partners — required for filing online forms with MCA.
Apply for LLP name approval through the Reserve Unique Name for LLP (RUN-LLP) portal on MCA.
Submit FiLLiP (Form for incorporation of LLP) along with all required documents on the MCA portal.
Draft the LLP Agreement defining roles, profit-sharing, and responsibilities — file Form 3 within 30 days of incorporation.
Receive the Certificate of Incorporation from MCA — your LLP is now officially registered and legally valid.
Typically, LLP registration takes 7 to 15 working days depending on government approval timelines and completeness of documents submitted.
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