What is an LLP?
A Limited Liability Partnership (LLP) is a business structure created under the Limited Liability Partnership Act, 2008. It combines the easy, flexible management of a partnership with the limited liability and separate legal identity of a company. The LLP can own assets, enter contracts and be sued in its own name, while each partner's risk is limited to their agreed contribution. It is a popular choice for consultants, agencies, CA and law firms, and family businesses in Bangalore.
Eligibility for LLP registration
- At least two partners — there is no upper limit.
- At least two designated partners who are individuals; one of them must be resident in India.
- If a company or another LLP is a partner, it must nominate an individual to represent it.
- Each partner contributes to the LLP as agreed in the LLP agreement — there is no minimum capital.
- A unique name ending with “LLP” or “Limited Liability Partnership”.
- A registered office address in India.
Key features of an LLP
- Separate legal identityThe LLP exists independently of its partners and continues even if partners change.
- Limited liabilityPartners are not personally liable for the LLP's debts beyond their contribution, nor for another partner's misconduct.
- Flexible managementPartners decide roles, profit sharing and decision-making through the LLP agreement.
- No limit on partnersAdd as many partners as you need as the business grows.
- Lower complianceNo board meetings or AGMs; audit only above ₹40 lakh turnover or ₹25 lakh contribution.
- Cost-effectiveCheaper to form and maintain than a private limited company.
Advantages and disadvantages
Advantages
- Personal assets protected
- No minimum capital
- Fewer annual filings than a company
- No dividend distribution — profits flow to partners
- Easy to add or remove partners
Things to consider
- Heavy late fees (₹100 per day per form) if annual filings are missed — even when inactive
- Must always have at least two partners
- Cannot issue shares, so equity fund-raising is harder
- Many VCs and angel investors prefer a private limited company
Naming your LLP
Pick a name that is unique, describes your business activity and is not similar to an existing company, LLP or trademark. It must end with “LLP” or “Limited Liability Partnership”. We run a full name and trademark check before filing so your name is approved first time.
Documents required
- PAN card of every partner (passport for foreign nationals)
- Identity proof — Aadhaar, voter ID, passport or driving licence
- Address proof — bank statement or utility bill not older than 2 months
- Passport-size photograph
- Registered office proof — utility bill plus rent agreement and owner's NOC if rented
- DSC of designated partners (we arrange this)
LLP registration process
- Digital Signature CertificatesWe obtain DSCs for the designated partners so forms can be signed online.
- Name reservation (RUN-LLP)We apply for your chosen name — or reserve it within the FiLLiP form.
- FiLLiP — incorporation formDetails of the LLP, partners, contributions and registered office are filed, along with partners' consent. DPINs for new designated partners are allotted through this form.
- Certificate of IncorporationOn approval, the ROC issues the Certificate of Incorporation with the LLPIN. PAN and TAN are allotted along with it.
- LLP Agreement — Form 3We draft the LLP agreement setting out partners' rights, duties and profit share. It must be stamped and filed within 30 days of incorporation.
How CRSB helps
- Experienced professionals who explain each step clearly
- Name availability and trademark check before filing
- DSC and DPIN arranged for all designated partners
- A well-drafted, legally sound LLP agreement
- PAN, TAN and bank account support
- Regular updates until your LLP is registered — and reminders for every annual filing after that
Frequently asked questions
Is there a minimum capital for LLP registration?
No. Partners can contribute any amount agreed between them.
Can a private limited company be converted into an LLP?
Yes, a private limited company can be converted into an LLP under the LLP Act, subject to conditions. A partnership firm can also be converted — see business conversion.
Does an LLP need an audit?
Only if turnover exceeds ₹40 lakh or partners' contribution exceeds ₹25 lakh in a financial year.
When must the LLP agreement be filed?
Within 30 days of incorporation, using Form 3. Late filing attracts ₹100 per day in additional fees.