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Frequently Asked Questions
Find answers to common queries regarding LLP registration, eligibility, and compliance in India.
A Limited Liability Partnership (LLP) is a business structure that combines the operational flexibility of a partnership with limited liability protection like a company.
LLPs offer limited liability, a separate legal identity, and simpler compliance compared to private limited companies, making them ideal for SMEs and professionals.
Key advantages include limited liability protection, separate legal entity status, perpetual succession, ease of compliance, tax advantages, and easier ownership transfer.
Registration generally involves obtaining DSC/DIN for designated partners, name approval, filing incorporation forms with ROC, and executing the LLP Agreement.
Typically 7–15 working days depending on document readiness and MCA processing time.
Any individual or body corporate can be a partner. Foreign nationals and foreign companies can also be partners, subject to applicable rules.
A minimum of two partners is required. There is no maximum limit on the number of partners.
The LLP Agreement defines rights, duties, profit-sharing, and operations of the LLP. It is mandatory and must be filed with ROC within the prescribed timeline.
Partner ID/address proofs, business address proof, DSC for designated partners, and the LLP Agreement draft are typically required.
Yes, LLPs can have foreign partners. Additional documentation and compliance may apply for foreign partners.
No, there is no minimum capital requirement. Partners can decide contributions as per the agreement.
Designated partners are responsible for statutory compliance, filings, and ensuring legal obligations of the LLP are met.
Yes. Conversion is possible subject to conditions and procedures prescribed under the Companies Act and relevant rules.
LLPs are generally taxed at a flat rate (commonly 30% plus surcharge/cess as applicable). Partners are taxed individually as per rules.
Key compliances include Form 11 (Annual Return), Form 8 (Statement of Accounts & Solvency), and annual Income Tax Return filing (ITR-5).