LLP Registration in India: Process, Documents, Cost & Why It Works Best in 2025

Let’s be honest! While starting a business, the last thing you would want to come across is a pile of legal chaos. You would be looking for flexibility, you would want protection, and you would look for something structured yet not suffocating. That’s where LLP Registration comes into play.

An LLP is what you get when a traditional partnership and a private limited company have a well-behaved, law-abiding child. You get flexibility, ease of management, and shared control, but without putting your personal assets at risk. That’s limited liability in action.  You don’t need a boardroom or investors in suits, just two people with a plan. In fact, that’s the minimum requirement to start one.

If you have already made plans to register your business as an LLP, check out the complete LLP Registration Process with LegalWiz expert assistance. For the breakdown of how it all works and why it might be a right fit, keep reading.

You get limited liability, perpetual succession, and freedom to scale, all without strict capital requirements or overwhelming paperwork. Sounds good? Let’s break down what makes LLPs tick, how to register one, what documents you’ll need, and the steps to do it right.

Here are some of the Key Features of an LLP

• Separate Legal Entity: An LLP is an entirely separate legal entity from its partners. LLP can own assets, can enter contracts independently, and can take legal action on its own.
• No Partner Limit: While two partners are the minimum to start, there’s no cap on how many you can have.
• Designated Partners: At least two must be designated partners, with one being a resident of India. These partners are responsible for compliance.
• Limited Liability: Your personal assets are safe. Liability is limited to your capital contribution.
• Low Cost to Start: Setting up an LLP is lighter on the pocket compared to a private limited company.
• Minimal Compliance: Fewer legal formalities make it ideal for small businesses and service providers.
• No Minimum Capital: You can start with whatever amount your partners are comfortable contributing.

Benefits of Choosing an LLP

1. Separate Legal Entity

LLPs can own property, open bank accounts, and sign contracts just like companies, all in the LLP’s name, not yours. It builds trust with vendors and clients alike.

2. Limited Liability of Partners

Your liability is limited to what you invest. If the business runs into trouble, your personal savings, car, or home are safe.

3. Low Cost and Less Compliance

LLPs don’t need to file dozens of forms each year. You’ll file just two key statements annually: the Annual Return and Statement of Accounts and Solvency.

4. No Minimum Capital Contribution

Start with whatever works for you. No pressure to pump in money just to meet regulatory requirements.

Disadvantages You Should Know

1. Penalties for Non-Compliance

Yes, compliance is light. But that doesn’t mean you can ignore it. Even dormant LLPs must file annual returns. Miss it, and the fines stack up.

2. Winding Up and Dissolution

An LLP must always have at least two partners. If one drops out and isn’t replaced within six months, the LLP could be dissolved.

3. Tough to Raise Capital

LLPs can’t issue shares, which means venture capitalists and angel investors often give them a pass. Investment usually means bringing someone on as a partner, and not all investors want that.

LLP Registration Cost in India

Your registration fee depends on your capital contribution:

Capital Contribution	Government Fees
Less than ₹1 lakh	₹500
₹1 lakh to less than ₹5 lakh	₹2,000
₹5 lakh to less than ₹10 lakh	₹4,000
₹10 lakh and above	₹5,000

Documents Required for LLP Registration

For Partners:

• PAN Card (mandatory for Indian nationals)
• Passport (mandatory for NRIs or foreign nationals)
• Aadhaar Card, Voter ID, and Driver’s License for address proof
• For residence proofs, you will need a Utility bill, bank statement, etc. (should be at least 2-3 months recent)
• A passport-size photo on a white background

For Foreign Nationals:

• Notarised/apostilled passport and address proof
• English translations if documents are in another language

For Registered Office:

• Utility bill (electricity/telephone) not older than 2 months
• Rent agreement (if rented)
• No Objection Certificate (NOC) from the property owner

Digital Signature Certificate (DSC):

At least one designated partner needs a DSC to file documents online.

Explore our guide on Documents Required for LLP Registration for the full checklist.

Step-by-Step LLP Registration Process

Step 1: Get a Digital Signature Certificate (DSC)

Designated partners must obtain a Class 3 DSC from a licensed provider. This is essential for signing and submitting forms online. DSCs should always be obtained from government-recognised certifying agencies, and the cost will differ from agency to agency.

Step 2: Apply for DPIN (Designated Partner Identification Number)

Each designated partner or intending designated partner needs a DPIN via Form DIR-3. Submit scanned ID proof like Aadhaar and PAN, signed by a CA, CS, or CMA.

Also, only individuals are eligible to be designated partners. Entities like companies or LLPs cannot apply for a DPIN.

Step 3: Reserve Your LLP Name

File the RUN-LLP form via the MCA portal. Suggest two unique names and check them in advance using MCA’s free name search tool.

Step 4: File FiLLiP Form for Incorporation

FiLLiP is your main form to incorporate the LLP. You can:

• Apply for DPIN (for up to two partners)
• Pay the government fee
• Reserve your LLP name (if not done earlier)

Step 5: File LLP Agreement

The LLP Agreement defines roles, responsibilities, and profit-sharing. Submit Form 3 within 30 days of incorporation. Print it on stamp paper; the stamp duty varies by state.

Important LLP Forms to Know

Form Name	Purpose
FiLLiP	Incorporation of LLP
RUN-LLP	Reserving LLP Name
Form 3	Filing the LLP Agreement
Form 8	Statement of Account and Solvency
Form 11	Annual Return of LLP
Form 24	Application for striking off the LLP name

Conclusion: Is LLP Right for You?

So, if you want a business with plenty of flexibility but without the baggage of a full-fledged company, LLP might just be your best bet. It gives you legal protection, limited liability, ease of management, and a lot less paperwork.

Sure, it’s not ideal for venture-funded businesses or equity-heavy startups. But if you’re a consultant, agency, service provider, or professional, it’s worth serious consideration.

The best part? You don’t have to figure this out alone.

LegalWiz.in makes the entire process of LLP registration in India simple, affordable, and fully compliant. From securing your DSC to drafting and filing your LLP Agreement, our team of experts ensures you never miss a step or a deadline, making the whole process streamlined and stress-free.

Start your LLP registration with LegalWiz.in

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