Limited Liability Partnership Firm Registration in India

Limited Liability Partnership Firm (LLP) is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

Limited liability partnerships (LLPs) allow for a partnership structure where each partner's liabilities are limited to the amount they put into the business. Limited liability means that if the partnership fails, then creditors cannot go after a partner's personal assets or income.

  • LLP is an alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership.

  • The LLP can continue its existence irrespective of changes in partners. It is capable of entering into contracts and holding property in its own name.

  • The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.

  • Further, no partner is liable on account of the independent or un-authorized actions of other partners, thus individual partners are shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

  • Mutual rights and duties of the partners within a LLP are governed by an agreement between the partners or between the partners and the LLP as the case may be. The LLP, however, is not relieved of the liability for its other obligations as a separate entity .

Since LLP contains elements of both ‘a corporate structure’ as well as ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership .LLP shall be a body corporate and a legal entity separate from its partners. It will have perpetual succession.

Statutory Benefits of Limited Liability Partnership Firm(LLP)

No requirement of compulsory Audit

All companies, whether private or public, irrespective of their share capital, are required to get their accounts audited. But in case of LLP, there is no such mandatory requirement. This is perceived to be a significant compliance benefit. A Limited Liability Partnership is required to get the tax audit done only in the case that:-

  1. The contributions of the LLP exceeds ₹. 25 Lakhs, or
  2. The annual turnover of the LLP exceeds ₹. 40 Lakhs

Taxation Aspect on LLP
For income tax purpose, LLP is treated on a par with partnership firms. Thus, LLP is liable for payment of income tax and share of its partners in LLP is not liable to tax. Thus no dividend distribution tax is payable. Provision of ‘deemed dividend’ under income tax law, is not applicable to LLP. Section 40(b): Interest to partners, any payment of salary, bonus, commission or remuneration allowed as deduction.

What is difference between LLP and LLC?
The difference between LLP and LLC is an LLC is a limited liability company and an LLP is a limited liability partnership. According to the government, specifically the IRS, an LLC is a business organization that is formed lawfully under the state by filing articles of organization.

Which is better LLP or LLC?
Overall, if your main concern is limiting liability or tax flexibility, an LLC is probably your best option. However, take a look at your state tax laws; some states may impose a higher tax on LLCs than LLPs.

Any Foreign LLP can establish its place of business in India by fillingForm 27 (Registration of particulars by Foreign Limited Liability Partnership (FLLP)). The e Form has to be digitally signed by authorized representative of the FLLP. There is no mandatory requirement to apply and obtain DPIN or DIN for Designated Partners of FLLP but the DSC of the authorized representative is mandatory.


>> Upload the required documents & information to our web portal by Clicking Register Now Link Below.

>>Choose the appropriate Package and Pay online with various payments modes available.

>>On placing the order, your application will be assigned to one of our dedicated professionals.

>>One of our professional will prepare the required form for the formation of the entity.

>> Obtain government registration certificate for your business entity.

>> Registration certificate shall be provided to you over the mail.