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A Limited Liability Partnership (LLP) under the LLP Act 2008 is a hybrid structure combining the limited liability protection of a company with the operational flexibility of a partnership. Partners are not personally liable for the firm's debts beyond their agreed contribution. An LLP requires a minimum of 2 designated partners (at least one a resident Indian), enjoys significantly lower compliance requirements than a Pvt Ltd, and has no minimum capital contribution requirement.
Lucknow-based professional services firms — law firms, CA firms, consultancies, and boutique agencies — increasingly prefer LLP over traditional partnerships due to the limited liability protection it provides. In Uttar Pradesh, LLPs also benefit from state government incentives available to registered business entities, including priority MSME loan schemes and industrial policy subsidies.
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RUN-LLP form filed on MCA21. Name must include 'LLP' or 'Limited Liability Partnership'.
Designated Partner Identification Numbers and Digital Signature Certificates obtained for all partners.
Form FiLLiP (Incorporation of LLP) filed with MCA along with the subscriber sheet.
Comprehensive LLP Agreement covering capital, profit-sharing, roles, and exit clauses filed within 30 days.
MCA issues Certificate of Incorporation with LLPIN. PAN and TAN applied simultaneously via SPICe+.
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A minimum of 2 designated partners is required. There is no maximum limit. At least one designated partner must be resident in India.
No minimum contribution is required. Partners agree on the contribution amount in the LLP Agreement — it can be in cash, kind, or intangibles.
LLPs must file Form 8 (Statement of Accounts) and Form 11 (Annual Return) with MCA each year. Income Tax Return is also mandatory.
Yes. FDI is permitted in LLPs in sectors under the automatic route. However, LLPs cannot issue convertible instruments, limiting VC/PE fundraising.
A Partnership Firm gives partners unlimited personal liability. An LLP provides limited liability, a separate legal identity, and MCA-regulated governance.
LLP is excellent for bootstrapped service businesses. For startups planning equity fundraising from VCs, a Private Limited Company is more suitable.
Late filing of Form 8 or Form 11 attracts ₹100/day penalty per form. Continued non-compliance can lead to the LLP being struck off by MCA.
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