Limited Liability Partnership

What is an LLP ?

A Limited Liability Partnership (LLP) is a unique type of business setup that blends a partnership’s and a company’s features. In an LLP, partners enjoy limited liability, similar to shareholders in a company, while also benefiting from the flexibility and simplicity of a partnership. This arrangement grants the LLP its legal identity, allowing it to take legal actions and be subject to legal actions separately from its partners.
LLPs have become popular among entrepreneurs in various industries because they shield partners’ assets and have more straightforward regulatory requirements than traditional corporations. The concept of LLP was introduced in India in 2008 and is governed by the Limited Liability Partnership Act, offering a dependable and adaptable option for businesses of all sizes.

LLP Registration Prerequisites and Eligibility Conditions

To qualify for the registration of an LLP company in India, you must adhere to the subsequent criteria:

Minimum of Two Partners: Establishing a Limited Liability Partnership in India necessitates a minimum of two partners, with no upper threshold on the maximum number of partners.

Designated Partners: Within the partnership framework, at least two selected partners are obligatory, and they must be natural individuals. At least one of these designated partners must also maintain residency in India.

Nomination for Body Corporate Partner If a body corporate assumes the role of a partner, the designation of a natural person must act as its representative.

Agreed Contribution: Each partner is required to contribute the shared capital of the LLP, as stipulated and agreed upon.

Minimum Authorized Capital: The LLP is mandated to possess an authorized capital of at least Rs.1 lakh.

Indian Resident Designated Partner: At least one designated partner of the LLP must hold a resident status in India.
By satisfying these prerequisites, you can progress with the registration of an LLP in India and avail the advantages bestowed by this business structure.

Government Fees / Cost for LLP registration:
For registration of Limited Liability Partnership, government fees are as below. Note that there are additional costs such as DIN application fees, stamp duties, LLP form filing fees as well:
★ Limited Liability Partnership whose contribution does not exceed Rs. 1 lakh Rs. 500/-.
★ Limited Liability Partnership whose contribution exceeds Rs. 1 lakh but does not exceed Rs. 5
lakhs Rs. 2000/-.
★ Limited Liability Partnership whose contribution exceeds Rs. 5 lakhs but does not exceed Rs. 10
lakhs Rs. 4000/-.
★ Limited Liability Partnership whose contribution exceeds Rs. 10 lakh Rs. 5000/-.
However, it may vary according to the stamp duties of respective states.