LLP offers limited liability protection with the flexibility of a partnership. A separate legal entity with perpetual succession and significantly lower compliance requirements than a Private Limited Company.
A Limited Liability Partnership (LLP) is a hybrid business structure governed by the LLP Act, 2008. It combines the benefits of a partnership (flexibility, less compliance) with the advantages of a company (limited liability, separate legal entity). An LLP is a body corporate with perpetual succession, meaning it continues to exist independently of its partners.
Unlike a traditional Partnership Firm, partners in an LLP are not personally liable for the debts of the business. Their liability is limited to their agreed contribution. And unlike a Private Limited Company, an LLP has significantly lower compliance requirements — no mandatory audit (if turnover is below ₹40 lakh and contribution below ₹25 lakh), no board meetings, and no AGM requirement.
| Feature | LLP | Private Limited Company |
|---|---|---|
| Governing Law | LLP Act, 2008 | Companies Act, 2013 |
| Minimum Members | 2 designated partners | 2 directors + 2 shareholders |
| Maximum Members | No limit | 200 shareholders, 15 directors |
| Limited Liability | Yes | Yes |
| Separate Legal Entity | Yes | Yes |
| VC/Angel Funding | Very difficult | Preferred by investors |
| Annual Compliance | Low (2 forms) | High (audit, AGM, ROC forms) |
| Mandatory Audit | Only if turnover > ₹40L or contribution > ₹25L | Always mandatory |
| Tax Rate | 30% (slab rate) + surcharge | 25% (for turnover < ₹400 Cr) |
| DDT / Dividend Tax | No dividend concept | Tax at shareholder's slab |
| ESOP | Not applicable | Available |
| Conversion | Can convert to Pvt Ltd | Can convert to LLP |
| Annual Cost | ₹5,000-15,000 | ₹30,000-60,000 |
| Best For | Consultants, professionals, small businesses | Startups raising funding |
| Component | Government Fee | Our Package (₹4,999) |
|---|---|---|
| Name Reservation (RUN-LLP) | ₹200 | Included |
| DSC for 2 Partners | ₹500-1,500 | Included |
| DPIN for 2 Partners | ₹0 (via FiLLiP) | Included |
| FiLLiP Filing (Incorporation) | ₹500 | Included |
| LLP Agreement Filing (Form 3) | ₹500 + stamp duty | Included |
| Stamp Duty | Varies by state | Included |
| Professional Fee | — | Included |
LLPs have significantly lower compliance than companies. Here's what's required:
Yes. If your LLP grows and you need to raise equity funding, you can convert it to a Private Limited Company under Section 366 of the Companies Act. The process takes 30-45 days. Many successful startups started as LLPs and converted when they needed venture capital. We handle the entire conversion process.
From ₹4,999, all-inclusive. No hidden fees. Expert CA/CS team handles everything — you focus on building your business.
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