How to Register a Limited Liability Partnership (LLP) in India – A Friendly Guide

Launching a business can feel like standing at the entrance of a huge, hazy maze, full of opportunities but a tad overwhelming. If you intend to launch your business and wish to have the flexibility of working in partnership with someone (or a few folks) and have limited liability to protect you, then forming a Limited Liability Partnership Registration (LLP) might be the best decision you can make.

This guide explains what an LLP is and highlights why it is a good vehicle for many entrepreneurs, and then shows how to form an LLP in India in a step-by-step manner without the jargon. Let’s get to it.

What is a Limited Liability Partnership?
A Limited Liability Partnership (LLP) can be understood as a middle ground between a partnership firm and a private limited company. It incorporates:
The flexibility of a partnership (less formality, flexibility in management)
With the limited liability of a company (your assets are at risk)
In layman's terms: if your Limited Liability Partnership ever gets into debt or is in any legal disputes, the most you are liable for is the investment you have made in the LLP, not the value of your car, house, savings, etc.
Limited Liability Partnerships are governed by the Limited Liability Partnership Act, 2008.

Why Should You Pick LLP Above All Other Business Structures?
In India, you have options to start your business as a sole proprietor, as a partnership, as a private limited company, and as an LLP. Why should you choose to form your business as an LLP? Here are the reasons:

✅ Limited Liability: your assets are protected!
✅ Separate Legal Entity: The LLP can sue and be sued, independent of its partners!
✅ No Minimum Capital: You can form an LLP with as little as ₹ 500!
✅ Easy Compliance: an LLP has less compliance burden than a company
✅ Tax: There is no dividend distribution tax like other companies
✅ Unlimited Partners: Minimum of 2 for LLP, no upper limit!