A Limited Liability Partnership (LLP) is a hybrid business structure governed by the LLP Act, 2008 that combines the operational flexibility of a traditional partnership with the limited liability protection of a company. In an LLP, partners are not personally liable for the misconduct or negligence of other partners — each partner's liability is limited to their agreed contribution.
LLPs are ideal for professionals, startups, and small businesses that want a simple compliance framework without the regulatory burden of a private limited company. The internal governance is regulated by the LLP Agreement, giving partners the freedom to structure management and profit-sharing as they see fit.
At Deepa Sharma & Associates, we provide end-to-end LLP incorporation services — from obtaining DSC and DPIN to filing the LLP Agreement — along with ongoing annual compliance management.
An LLP has a distinct legal identity separate from its partners. It can own property, sue and be sued in its own name.
Each partner's liability is limited to their agreed contribution. Personal assets of partners are protected from business debts.
There is no minimum capital requirement to incorporate an LLP. Partners can start with any contribution amount.
The LLP continues to exist irrespective of changes in partners. Death or retirement of a partner does not affect the LLP.
Partners have complete freedom to design the internal management structure, profit-sharing ratio, and decision-making process through the LLP Agreement.
Unlike a traditional partnership firm (limited to 50 partners), there is no upper limit on the number of partners in an LLP.
Existing partnership firms, private companies, and unlisted public companies can be converted into an LLP without dissolution.
Compared to a company, an LLP has fewer compliance requirements — no mandatory audit (below threshold), no board meetings, and simpler annual filings.
All designated partners must obtain a Class 3 DSC from a certified agency. This is required for electronic filing on the MCA portal.
Designated Partner Identification Number is obtained by filing Form DIR-3. If the partner already holds a DIN, it serves as their DPIN.
Reserve the proposed LLP name through the RUN-LLP service on MCA portal. The name is reserved for 90 days upon approval.
File Form FiLLiP (Form for Incorporation of LLP) with the ROC along with subscriber's consent. Upon approval, the Certificate of Incorporation is issued with the LLPIN.
The LLP Agreement must be filed in Form 3 within 30 days of incorporation. This document governs the rights, duties, and obligations of partners.
Every LLP must file the following annual forms and meet audit requirements based on turnover and contribution thresholds.
A minimum of 2 designated partners are required to incorporate an LLP. At least one designated partner must be a resident of India (i.e., stayed in India for at least 120 days in the preceding financial year). There is no upper limit on the number of partners.
No, audit is mandatory only if the LLP's annual turnover exceeds ₹40 lakh OR the partners' contribution exceeds ₹25 lakh. LLPs below these thresholds are exempt from audit requirements but must still file Form 8 and Form 11 annually.
Yes, an LLP can be converted into a Private Limited Company under the provisions of the Companies Act, 2013. The LLP must comply with specific conditions and file the necessary forms with the ROC for conversion.
Late filing attracts a penalty of ₹100 per day of delay for each form, with no maximum cap. Additionally, if the LLP fails to file returns for consecutive years, the ROC may initiate proceedings to strike off the LLP.
The entire LLP registration process typically takes 10–15 working days from the date of DSC application, assuming all documents are in order. Name approval usually takes 2–3 days, and incorporation takes another 5–7 days after name approval.
From incorporation to ongoing compliance, we handle everything so you can focus on building your business.