Incorporation of Limited Liability Partnership ( LLP ) in India

Ideal if your business or Profession is small and Medium

  • A Formal Partnership Business | Can raise Foreign Direct Investment
  • Time taken approx 7 days | Includes LLP Agreement, PAN, 1 DSC & DIN 
  • Eligible to appy for Startup India Recognition & Tax Exemption
  • Minimum Compliances compare to a Company
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Incorporation of Limited Liability Partnership ( LLP ) in India

Something about Limited Liability Partnership (LLP)

Best option if your business or Profession is small as well as it has Less ROC Compliances

Eligible to Apply for StartupIndia Recognition

As compared to a Private Limited Company, an LLP is more beneficial and convenient to run due to less ROC compliances and No requirement for statutory audit by practicing chartered accountant till the turnover exceeds Rs 40 Lakhs or Partners Capital Contribution upto Rs 25 lakhs. 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. In case an LLP fails to file Form 8 or Form 11 (LLP Annual Filing), a penalty of Rs.100 per day, per form is applicable. There is no cap on the penalty and it could run into lakhs if an LLP has not filed its annual return for a few years.

Documents Requirements for LLP Incorporation

  1. Photographs and PAN card of all Partners
  2. ID Proof - Driving License / Voter ID / Passport (anyone) of all Partners
  3. Address Proof - Bank Statement / Telephone or Mobile or Electricity Bill (not more than 30 days old) of all Partners
  4. Email ID and Mobile Numbers of all Partners
  5. Aadhar card ( Optional )
  6. Proposed Company Registered Office Address Proof - Telephone or Mobile or Electricity Bill (not more than 30 days old) + NOC from property owner
  7. DIN ( Optional - In case any proposed partners/Designated partners already have Active DIN)

Features of Limited Liability Partnership (LLP)

  1. Minimum 2 Partners require to form LLP
  2. Maximum 200 Partners allowed in LLP
  3. All Partners should obtain DIN
  4. Annual Statutory Audit not mandatory upto Turnover Rs 40 lakhs / Capital contribution upto Rs 25 Lakhs
  5. Less ROC Compliance - Low running cost
  6. HIGH NON COMPLIANCE PENALTY - ROC Non Compliance penalty Rs 100 per day per form ( 2 forms yearly). No Maximum Penalty Cap.
  7. LLP can raise FDI
  8. In LLP there is not provision for issue of Share Capital
  9. LLP is convertible into Private Limited Company after 2 years with minimum 7 partners
  10. HIGH TAX - Normal Income Tax rate like Partnership firm @ 30% on net profit
  11. LLPs are required to maintain proper books of accounts since registration on cash basis or accrual basis
  12. LLP is a separate legal entity from the partners. Each partner can sue the other in case a situation arises.

Cost of LLP Incorporation

LLP Option 1

With upto 5 Partners

Rs. 10000

LLP Option 2

With upto 10 Partners

Rs. 14000

Startup LLP Business 1

LLP with capital contribution upto Rs 1 Lakh + Startup India Recognition + MSME + GST

Rs. 24000

Startup LLP Business 2

LLP with capital contribution upto Rs 1 Lakh + Startup India Recognition + MSME + GST + Basic Website

Rs. 31000

Stamp papers to be purchase by client at his own state/city. Value of stamp paper depends on capital contribution. Approx Rs 500 to 5000 - state to state varies.

Our Service Coverage

After LLP incorporation, you will receive below documents from our side

  • Certificate of Incorporation of LLP
  • LLP Agreement
  • PAN card
  • One Digital Signatures (Class 2)
  • Directors Identification Number (DIN)

Pre-requisite for LLP formation

  • Proposed LLP name must be unique. The suggested name should not match or identical with any existing companies/LLP or trademarks in India. # We help here to choose name.
  • All Proposed Partners must have Active DIN
  • Digital Signature of any one Partner
  • Decide Capital contribution by each partners
  • Stamp duty on LLP Agreement based on Capital Contribution. Low Capital - Less Govt Fee.
  • Decide LLP State and Office address

What are the various Compliances you need to do post incorporation of a LLP

Apart from other statutory compliances like GST, InCome Tax, etc., LLP must comply below without any delay.

  • Online ROC Annual Filing
  • Filing of Director e-KYC

Hardly Annual Expenses of ROC filing would be Rs 4-5K yearly. 

Incorporation of Limited Liability Partnership ( LLP ) in India
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