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Limited Liability Partnerships (LLPs) are a well-known and popularly used company structure in many countries. These LLPs are a simple and elegant way to combine entrepreneur initiative with the necessary finance and other resources, professional competence, and creative business understanding. LLP's tax obligations are distinct from those of business corporations, and are generally lower. Other advantages of limited liability partnerships are discussed in the following section. A limited-liability partnership (LLP) is a type of corporation that combines the advantages of limited liability and the flexibility of a partnership.

Benefits for forming LLP:

Convenient: It is easy to begin and run a company like an entrepreneur. LLP agreements are tailored to meet the needs of the partners involved. In comparison to any other Private Limited Company, there are fewer formalities in the areas of legal compilation, annual meeting, and resolution. 

Capital requirement: A limited liability partnership (LLP) can be formed with a small amount of cash. Capital can take the shape of a tangible, transportable item such as land or machinery, or it might take the shape of an intangible asset. The minimum capital required for a private company (Requirements for Registration of a Private Company) and a public company (Requirements for Registration of a Public Company) is Rs. 1,00,000 and Rs. 5,00,000, respectively, however the LLP has no such requirement.

Ownership of LLP:In contrast to a private business, which is limited to having no more than 200 members but an LLP requires a minimum of two partners and has no limit on the maximum number of partners.

Lower Registration Fees: In comparison to other types of companies (Public or Private), the cost of registering an LLP is low.

No requirement of mandatory Audit: LLPs are not mandated to have their accounts audited. Any other company (public or private) is required to have its accounts audited by an auditing firm. However, in the opposite situations, LLP is required to audit their account:

  • When the LLP's contributions exceed Rs. 25 lakhs.
  • When the LLP's annual turnover exceeds Rs. 40 lakhs.

Lower Compliances:LLPs have a lower compliance burden because they only have to file two statements: the Annual Return and Statement of Accounts and the Solvency Statement. In the case of a private company, at least 8 to 10 regulatory formalities and compliances must be completed.

Taxation: The LLP is exempt from paying taxes on the income and share of its partners. As a result, no dividend distribution tax payable under section 40(b). Bonuses, commissions, and remuneration, as well as interest to partners and any salary payment, are all authorized as deductions. The income tax provision of a "deemed dividend" does not apply to LLPs.

(DDT) does not apply: If LLP partners withdraw profits from the company, they are not subject to an additional tax payment in the form of DDT. In the case of a firm, the owners must pay DDT at a rate of 15%. (Surcharge & educational cess). As a result, the profit of an LLP is in the hands of its partners, who can easily withdraw it.


  • PAN Card, Passport, Election Id, Driving License - anyone's ID proof of Partners is acceptable. (Income-taxation  PAN is a mandatory requirement for Indian Designated Partners as proof of identity, and passport is a mandatory requirement for foreign nationals/Partners.)
  • Aadhaar Card, Passport, election (voter identity) card, ration card, driving license, electricity bill, telephone bill, or bank account statement – anyone for Address proof.
  • Photographs of the Designated Partners in passport size.
  • Proof of registered office address


LLP Registration Process

Step 1: Obtain Digital Signature Certificate (DSC)

Step 2: Apply for Director Identification Number (DIN)

Step 3: Reservation of Name.

Step 4: Incorporation of LLP.

Step 5: File Limited Liability Partnership (LLP) Agreement.

What India Expert offers

We provide LLP registration services and are well-known as a one-stop shop for LLP registration services in Delhi/NCR. We provide professional support in obtaining your LLP Registration at a reasonable cost and in a timely manner. The following is a list of our LLP-related areas.

  • Registration service.
  • Assistance with acquiring a DIN.
  • Assistance with acquiring a digital signature.
  • Assistance with all legal and documentation aspects of LLP formation.

Last updated 2 years ago


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