Considering starting a business with a partner—or perhaps a team of partners? If you’re looking for flexibility, combined with protection from legal liability, a Limited Liability Partnership (LLP) Registration may just be the right structure for you.
Why choose an LLP?
Starting a business means choosing a new structure. There are many, including Sole Proprietorship, Private Limited Company, and LLP, to name just a few. It can all get a little overwhelming. Let’s break it down in simple English.
An LLP gives you the best of both worlds by combining all of the benefits of a partnership structure and a company structure. Benefits include ease of management, tax benefits, and most importantly, limited liability. It’s great in that you won’t lose your sets if the business takes a turn for the worse.
What is an LLP, anyway?
It might be easiest to think of an LLP as a “smart partnership”. It gives you:
Easy management (no board meetings, no paperwork),
Separate legal entity (like a company),
Limited liability (your home, assets, and savings are not at risk due to your partner’s fault).
In partnerships, if one partner makes an unfortunate decision, they are all financially in the same boat! With an LLP, you have the protection of limited liability for the personal liability that arises from other partners.
Why choose LLP versus the other options?
Assume you and a friend wanted to start a consulting agency. You need to put in place a legal structure that looks professional, avoids heavy compliance, and minimizes personal risk. LLP is the perfect fit.
Here is why:
✔️ Limited personal liability
✔️ Less paperwork than Private Limited Companies
✔️ No minimum capital
✔️ Separate legal entity
✔️ No dividend distribution tax
This is a key reason LLPs have always been favorable to chartered accountants, lawyers, architects, IT consultants, small scale services vendors etc.
Who can have an LLP?
Almost anyone! You must have a minimum of two designated partners and:
At least one designated partner must be a resident of India.
Both designated partners must have a Digital Signature Certificate (DSC).
Both designated partners must have a Director Identification Number (DIN).
A company (such as a Private Limited Company) can also be a partner of an LLP.
What documentation is required?
For Partners:
PAN number
Aadhar card/passport/voter ID/driving license
Proof of address (e.g., recent utility bill or bank statement)
Passport-size photograph
A valid email ID and mobile phone number
DSC and DIN (if received)
For LLP:
Proposed name of the LLP.
Proof of registered office (e.g., rent agreement + NOC from landlord)
LLP agreement (which provides details about how the LLP will operate).
A Step-By-Step Guide on Registering Your LLP in India
1. Obtain a DSC (Digital Signature Certificate)
All partners will need a DSC to sign documents electronically. You can apply through any of the authorized vendors; this process usually takes 1-2 days.
2. Apply for DIN (Director Identification Number)
Apply on the MCA (Ministry of Corporate Affairs) portal. DIN is a unique ID for designated partners, and it is compulsory.
3. Reserve Your LLP Name
The RUN-LLP form is used to check name availability, and to reserve your name. Make sure your name ends with “LLP”, e.g. PixelEdge Consulting LLP.
4. Incorporation Form (FiLLiP)
The form will ask for partner details, business address, capital contributions, and supporting documentation. Once the application is approved, you will be issued a Certificate of Incorporation.
5. Draft and File your LLP Agreement
The LLP Agreement outlines how the business operates, partners’ roles and responsibilities, profit shares, dispute resolution procedures, exit clauses, etc. The LLP agreement must be filed within 30 days of incorporation to avoid penalties.
Ongoing LLP Compliance
Just because you’re running an LLP doesn’t mean you have no obligations. You still need to comply with annual compliance requirements:
Form 8 – Statement of Account & Solvency (the accountant will assist you with this)
Form 11 – Annual Return (with the partner details)
Income Tax Return (ITR) – Even if there is no profit, this needs to be filed.
Good news! These filings are much easier than those of Private Limited Companies.
Is an LLP the Right Fit for You?
If you’re a small business owner, a professional consultant, or just starting with a partner, an LLP is the right choice for you. Often, an LLP requires little money, no legal team, and no CFO. All you need is the right partners and the proper structure.
An LLP gives you:
✅ Personal Liability Protection
✅ Simpler setup and management
✅ Long-term flexibility
Need Help Registering Your LLP?
Don’t want to fill out, file, and follow-up with the forms yourself? Kanakkupillai offers full online LLP registration services including name reservation, agreement filing, and all the support you need.
Be the smart one to start your business. Register your LLP today on strong and stress less!