We are proud to offer credible Limited Liability Partnership Formation Services, which are praised by clients for the transparency and professional approach, with which provide them. Available in customized form, our Limited Liability Partnership Formation Services are able to cater to any and every need and demand of our clients.
A limited liability partnership (LLP) in India is similar to a general partnership, except the partners are not personally liable for negligent acts conducted by other partners or employees not under their supervision. This is different from a general partnership, in which each partner is liable for the debts and obligations of the business as well as the malpractice of any other partner. Income taxes in an LLP are passed through the business and reflected on the partners’ individual tax returns. Because of the limited liability of each partner and pass-through tax status, LLPs are a very popular business structure.
LLP, a legal form available world-wide is now introduced in India and is governed by the Limited Liability Partnership Act 2008, with effect from April 1, 2009.LLP combines the advantages of ease of running a Partnership and separate legal entity status and limited liability aspect of a Company.Here are some of the main features of an LLPLLP is a separate legal entity separate from its partners, can own assets in its name, sue and be sued.Unlike corporate shareholders, the partners have the right to manage the business directly. One partner is not responsible or liable for another partner’s misconduct or negligence.
Minimum of 2 partners and no maximum.Should be ‘for profit’ business.Perpetual succession. The rights and duties of partners in LLP will be governed by the agreement between partners and the partners have the flexibility to devise the agreement as per their choice. The duties and obligations of Designated Partners shall be as provided in the law.
Liability of the partners is limited to the extent of his contribution to the LLP. No exposure of personal assets of the partner, except in cases of fraud.LLP shall maintain annual accounts. However, audit of the accounts is required only if the contribution exceeds Rs. 25 lakhs or annual turnover exceeds Rs.40 lakhs.A LLP is indeed advantageous because of comparatively lower cost of formation, lesser compliance requirements, easy to manage and run and also easy to wind-up and dissolve, no requirement of minimum capital contributions, partners are not liable for the acts of the other partners and importantly no minimum alternate tax (as of date). But, LLP cannot raise money from the public.
The ‘Limited Liability Partnership” (LLP) format of the registered company was originally created to enable the professions to take advantage of limited liability, but its popularity is growing among a much wider range of businesses.
India has witnessed considerable growth in the services sector and the quality of our professionals is acknowledged internationally. It is necessary that entrepreneurship knowledge and risk capital combine to provide a further impetus to our impressive economic growth. Equally the services sector promises an economic opportunity similar to that provided by information technology over the past few years. It is likely that in the years to come Indian professionals would be providing accountancy, legal and various other professional/technical services to a large number of entities across the globe. Such services would require multidisciplinary combinations that would offer a menu of solutions to international clients.
Persons providing services of any kindEnterprises in new knowledge and technology-based fields where the corporate form is not suited.For professionals such as Chartered Accountants (CAs), Cost and Works Accountants (CWAs), Company Secretaries (CSs) and Advocates, etc.Venture capital funds where risk capital combines with knowledge and expertise.Professionals and enterprises engaged in any scientific, technical or artistic discipline, for any activity relating to research production, design and provision of services.Small Sector Enterprises (including Micro, Small and Medium Enterprises)Producer Companies in Handloom, Handicrafts sector.But, LLP might not be a choice due to certain extraneous reasons, for example, DOT would approve the application for a leased line only for a company; Angels / VCs would be comfortable investing in a company.
However there are so many advantages of starting a limited liability partnership than a private limited company in India.
If the company expects to employ people and the employee’s payroll is likely to be higher than the owners’ salary, a “private company limited by shares” may well be more tax-efficient that an “limited liability partnership”.If the business is likely to remain as just two or three members who are each making a similar contribution and each draw similar salaries then the LLP option will probably be more tax efficient.One other important factor should be weighed in the balance : How likely is it that the business will be sold as a going concern? A “private company limited by shares” (LTD) is more anonymous and easier to separate from the owners by means of transferring the shares. A partnership is more personal and therefore less straight-forward to separate from the owners.
There is no absolute rule that makes one format better than the other. In any case, if your business changes over the years so that the alternative format becomes more appropriate, it is possible to form a new company of the other type – then transfer the business over to the new company
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 a ‘a partnership firm structure’ LLP is called a hybrid between a company and a partnership.| Features | Company | Partnership Firm | LLP |
|---|---|---|---|
| Registration | Compulsory registration required with the ROC. Certificate of Incorporation is conclusive evidence. | Not compulsory. Unregistered Partnership Firm will not have the ability to sue. | Compulsory registration required with the ROC |
| Name | Name of a public company to end with the word “limited” and a private company with the words “private limited”. | No guidelines. | Name to end with “LLP” “Limited Liability Partnership” |
| Capital Contribution | Private company should have a minimum paid up capital of Rs. 1 lakh and Rs. 5 lakhs for a public company. | Not specified | Not specified |
| Legal Entity Status | Is a separate legal entity | Not a separate legal entity | Is a separate legal entity |
| Liability | Limited to the extent of unpaid capital. | Can extend to the personal assets of the partners. | Limited to the extent of the contribution to the LLP. |
| No. of Shareholders / Partners | Minimum of 2. In a private company, maximum of 50 shareholders. | 2-20 partners | Minimum of 2. No maximum. |
| Foreign Nationals as Shareholders / Partner | Foreign nationals can be shareholders. | Foreign nationals cannot form partnership firm. | Foreign nationals can be partners. |
| Taxability | The income is taxed at 30% + surcharge+cess | The income is taxed at 30% + surcharge+cess. | The income is taxed at 30% + surcharge+cess. |
| Meetings | Quarterly Board of Directors meeting, annual shareholding meeting is mandatory | Not required | Annual statement of accounts and solvency & Annual Return has to be filed with ROC |
| Annual Return | Annual Accounts and Annual Return to be filed with ROC | No return to file | Required, if the contribution is above Rs. 25 lakhs or if annual turnover is above Rs. 40 lakhs. |
| Audit | Compulsory, irrespective of share capital and turnover | Not compulsory | Compulsory |
| How do the bankers view | High creditworthiness, due to stringent compliances and disclosures required of the partners | Creditworthiness depends on goodwill and credit worthiness of the partners | Perception is higher compared to that of a partnership but lesser than a company |
| Dissolution | Very procedural. Voluntary or by Order of National Company Law Tribunal | By agreement of the partners, insolvency or by Court Order | Less procedural compared to company. Voluntary or by Order of National Company Law Tribunal |
| Whistle Blowing | No such provision | No such provision | Protection provided to employees and partners who provide useful information during the investigation process. |
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Beyond incorporation, we structure your LLP for long-term success advising on optimal capital contribution ratios, tax-efficient partner remuneration (Section 40(b) of the Income Tax Act), TDS applicability on partner payments, and the mandatory annual compliance calendar so you never face MCA late fees or Registrar of Companies (ROC) penalties.
A Limited Liability Partnership delivers the best of both worlds corporate-style asset protection with partnership-style operational flexibility and minimal compliance costs.
The LLP exists independently of its partners — business continuity is unaffected by partner admission, retirement, or death, ensuring stability for clients, lenders, and vendors.
Our senior chartered accountants provide structured LLP formation services across diverse professional and commercial entities in NCR.
Keep these identity, address, and business documents ready our team handles attestation, notarization, and portal formatting.
A systematic, CA-led formation framework ensuring your LLP is incorporated, registered, and compliance-ready within 7–10 working days.
We complete GST registration, Shops & Establishment registration, current account opening support, and set up your annual compliance calendar (Form 8, Form 11, ITR-5).
We reserve your company name via RUN/SPICe+ and finalize the optimal shareholding structure, authorized capital, and director composition.
We procure Digital Signature Certificates for all directors and apply for Director Identification Numbers through the SPICe+ integrated forms.
Our CS/CA team drafts customized constitutional documents covering business objects, share transfer rules, board powers, and shareholder protections.
We compile the integrated SPICe+ application incorporation, PAN, TAN, EPFO, ESIC, GST, and bank account with e-MOA and e-AOA attachments.
We respond to any MCA registrar queries (if raised), clarify object clauses or address proofs, and track your application through the ROC examination stage.
Upon approval, you receive the Certificate of Incorporation with Corporate Identity Number (CIN), PAN, TAN, and GSTIN in 7–15 working days.
We issue share certificates, conduct the first board meeting, appoint auditors, file commencement declarations, and activate your annual compliance calendar.
What sets Aggarwal Varun & Co. apart as the premier business incorporation firm in Gurugram and Delhi NCR.
Every LLP Agreement, capital structure, and incorporation filing is directly reviewed by CA Varun Aggarwal (FCA) before MCA submission.
We have incorporated and maintained LLPs, companies, and partnerships for over 500 businesses across Gurgaon, Delhi, and Haryana.
With pre-verified documentation workflows and dedicated MCA filing teams, your LLP is typically incorporated within 10 working days.
We advise on partner remuneration under Section 40(b), capital vs. loan structuring, and remuneration vs. profit-share ratios to minimize your combined tax outgo.
No hidden charges. Government fees, stamp duty, DSC, and professional fees are quoted upfront in a single consolidated proposal.
From annual Form 8/11 filings to income tax returns and ROC amendments, we remain your compliance partner long after incorporation day.
| Parameter | LLP | Private Limited Company | Partnership Firm |
|---|---|---|---|
| Governing Law | LLP Act, 2008 | Companies Act, 2013 | Indian Partnership Act, 1932 |
| Partner / Shareholder Limit | Minimum 2, no maximum | Minimum 2, maximum 200 shareholders | Maximum 50 partners |
| Liability | Limited to capital contribution | Limited to share value | Unlimited; personal assets may be at risk |
| Minimum Capital | No minimum requirement | No minimum requirement | No minimum requirement |
| Annual Compliance | Form 11 + Form 8 | AOC-4, MGT-7, audits and board meetings | Minimal; may vary by state |
| Audit Requirement | Only if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh | Mandatory regardless of turnover | Not mandatory under partnership law |
| Tax Rate | 30% flat + applicable surcharge and cess | Applicable corporate tax rate subject to eligibility and tax regime | 30% + applicable surcharge and cess |
| Perpetual Succession | Yes | Yes | No — may be affected by changes in partners |
There is no minimum capital requirement under the LLP Act, 2008. Partners can start with any contribution amount even ₹10,000 and increase capital later by amending the LLP Agreement. Capital can be contributed in cash, kind, or intangible assets.
With complete documents, LLP registration typically takes 7–10 working days 2–3 days for DSC issuance, 1 day for name reservation (RUN-LLP), and 5–7 working days for ROC processing of the FiLLiP form. The LLP Agreement must be filed within 30 days of incorporation.
Yes, NRIs and foreign nationals can be partners in Indian LLPs, subject to FEMA regulations. At least one designated partner must be an Indian resident. Foreign partners' documents require notarization and apostille, and FEMA/sectoral restrictions apply to certain business activities.
An LLP offers similar limited liability but far fewer compliance obligations no board meetings, no mandatory audit (unless turnover > ₹40L), and only two annual ROC filings. However, LLPs cannot raise venture capital or issue shares, making companies preferable for startups seeking equity investment.
Every LLP must file Form 11 (Annual Return) by 30th May and Form 8 (Statement of Accounts & Solvency) by 30th October each year, along with the Income Tax Return (ITR-5). Missing deadlines attracts penalties of ₹100/day per form, which accumulate quickly.
Yes, under Section 55 of the LLP Act with Form 17 filing. All partners of the firm typically become LLP partners, assets and liabilities transfer automatically, and the firm is dissolved upon conversion. The conversion takes 15–20 working days with proper documentation.
Start your business with the right legal foundation. Schedule a consultation with CA Varun Aggarwal (FCA) and our incorporation team in Sector 31, Gurugram. From name reservation to your first annual filing we handle everything, so you can focus on building your business.
