Limited Liability Partnership — corporate protection with low compliance cost
Three questions, then we'll show you what fits and how long it takes.
A Limited Liability Partnership (LLP) is a separate legal entity registered under the Limited Liability Partnership Act, 2008. It combines the flexible, agreement-based way a partnership is run with limited liability: each partner is liable only up to their agreed contribution, except for their own wrongful acts.
An LLP is registered with the Registrar of Companies through the Ministry of Corporate Affairs (MCA). It is a popular choice for professional firms, consultancies and small businesses that want a formal structure without the heavier machinery of a company.
The main trade-off is funding. An LLP cannot issue shares, so it does not suit founders who expect to raise venture equity or issue stock options.
Last reviewed against the official sources below on 22 October 2026.
Professionals such as chartered accountants, architects and consultants who want to practise together with limited liability.
Family businesses and small partnerships that want a legal entity without a board and shareholder structure.
Founders who do not plan to raise equity from outside investors and want lighter compliance than a Private Limited company.
Existing partnership firms who want limited liability. Converting a firm into an LLP is a separate process from a new registration.
Agree the partners and designated partners
Decide who the partners are, who the two designated partners will be, and who is resident in India. Collect PAN, Aadhaar, photo and address proof for each.
Get digital signature certificates
The designated partners need digital signature certificates from a licensed certifying authority to sign the forms.
Reserve the LLP name
Use the MCA's name reservation service for LLPs. The name must not match existing companies, LLPs or registered trademarks.
File the incorporation form (FiLLiP)
Fill in the form for incorporation of an LLP, with partner and designated partner details, the registered office proof, the contribution of each partner and the business activity. The same filing can apply for DPINs.
Receive the certificate of incorporation
When the Registrar approves, the MCA issues the certificate of incorporation with the LLP identification number (LLPIN).
Sign and file the LLP agreement (Form 3)
Draft the LLP agreement to cover profit sharing, powers, exit and dispute rules. File it on the MCA portal within 30 days of incorporation.
Start the post-registration tasks
Apply for the LLP's PAN and TAN if not done in the incorporation form, open a bank account and register for GST if needed.
The MCA does not promise a fixed time and we do not quote one. Name rejections and address proof problems cause most delays. Allow time after incorporation for the LLP agreement, which has a hard 30-day filing deadline, and the bank account.
| Item | For whom | Note |
|---|---|---|
| PAN and Aadhaar | Every partner who is an Indian individual | Names must match across documents |
| Passport and address proof | Foreign partners | Often notarised or apostilled; check what the form asks for |
| Passport-size photograph and email, mobile | Every partner | Used for verification |
| Digital signature certificate | Designated partners | Valid for the whole filing |
| Proof of registered office | The LLP | Utility bill, ownership proof or rent agreement and owner's no-objection letter |
| Proposed names and business activity | The LLP | Two options help if the first is rejected |
| LLP agreement | The LLP | Filed in Form 3 within 30 days of incorporation |
| LLP | Private Limited | Partnership firm | |
|---|---|---|---|
| Separate legal entity | Yes | Yes | No |
| Liability of owners | Limited to contribution | Limited to shares | Unlimited |
| Minimum owners | 2 partners (2 designated) | 2 directors and 2 shareholders | 2 partners |
| Governed by | LLP Act, 2008 and the LLP agreement | Companies Act, 2013 | Indian Partnership Act, 1932 |
| Raising equity | Cannot issue shares | Can issue shares and options | Cannot |
| Annual filings | Form 8 and Form 11 | AOC-4 and MGT-7, plus a mandatory audit | Minimal; income tax return |
| Audit | Required only above limits set in the LLP rules | Always required | Not required by company law |
Rules and portals change. Confirm fees and form versions on the official site before you pay or file.
Government Fees
Name reservation (RUN-LLP)
Varies; confirmed on the MCA portal at filing
FiLLiP filing fee
For total contribution up to Rs 1 lakh
Stamp duty on LLP Agreement
Varies by state approx. Rs 500-5,000
Professional Fees
LLP incorporation package (all-inclusive)
Includes DSC, DPIN, FiLLiP, LLP Agreement, PAN, TAN
* Government fees may vary. GST applicable on professional fees. Final pricing confirmed after review.
At least two, including two designated partners who are individuals. At least one designated partner must be resident in India.
Yes, there are MCA fees for incorporation and for the LLP agreement filing, and they depend on the contribution and the forms used. Check the current schedule on the MCA portal.
Within 30 days of incorporation, in Form 3.
Form 11 (annual return) within 60 days of the end of the financial year, Form 8 (statement of account and solvency) by 30 October, and the income tax return.
An LLP cannot issue shares, so it is hard to use for typical venture equity. Many founders convert to a Private Limited company before a funding round.
Only if its turnover or contribution crosses limits set in the LLP rules. Check the current limits with your accountant.
Yes, subject to foreign investment rules for your sector. At least one designated partner must be resident in India.
Yes. LLPs are on the list of eligible entities, and a recognised LLP incorporated after 1 April 2016 can apply for the Section 80-IAC tax holiday.
LLP Registration
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LLP Registration
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LLP Registration
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