Limited Liability Partnership / LLP REGISTRATION IN PUNE

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A partnership in which some or all partners have limited liabilities is known as a Limited Liability Partnership (LLP). LLP possess characteristics of both partnerships and corporations. Partners of LLP are not responsible or liable for another partner's misconduct or negligence. In a LLP, partners have a form of limited liability just like that of the shareholders of a corporation. In certain countries, as per the rules, a LLP should also have at least one person known as a "general partner" who would have the unlimited liability of the company. The partners of LLP have the right to manage the business directly. However, this right is not available to corporate shareholders. On contrary, corporate shareholders have the right to elect a board of directors under the laws of various state charters. The board organizes itself and hires officers as corporate individuals and their legal responsibility is to manage the corporation in its best interest. A LLP also has a different structure of tax liability as compared to that of a corporation.

In certain countries, Limited liability partnership requires at least one unlimited partner and allows other partners to be in the role of a passive and limited liability investor. As a result, the LLP form of organization is more suitable for businesses in which all investors wish to take an active role in management.



On 9th January 2009, the Limited Liability Partnership Act, 2008 was published in the official Gazette of India and has been notified with effect from 31 March 2009. On 1 April 2009, the rules have been notified in the official gazette. The first Indian LLP was the legal consultants of Handoo and Handoo, which was incorporated on 2nd April 2009.

LLP is different from a Limited Partnership. In an LLP each member is liable up to the extent of their capital contribution in the LLP.

1.       A LLP in Pune is treated like any other partnership firm for the purposes of taxation (service tax or any other stipulated tax payment).

2.       Partners’ share is limited to their agreed contribution in the LLP.

3.       Further, no partner would be liable on account of the independent or unauthorized actions of other partners, thus allowing individual partners to be shielded from joint liability created by another partner's wrongful business decisions or misconduct.

4.       Just like corporate entity, LLP is a body corporate and a legal entity which is separate from its partners. It has perpetual succession. Indian Partnership Act, 1932 does not govern the LLPs and there is no upper limit on the number of partners in a LLP. The Act makes it obligatory that one of the partners to the LLP should be an Indian.

5.       Provisions have been made for mergers, amalgamation, and corporate actions.

6.       While enabling provisions in respect of winding up and dissolution of LLPs have been made, detailed provisions in this regard would be provided by way of rules under the Act.

7.       LLP's shall be registered and controlled by the Registrar of Companies (Roc).



•         Low cost of Registration - Firstly, registration and formation of a Limited Liability Partnership involves very low costs and expenses as compared to that of a company or a traditional partnership firm.

•         Flexible Structure of business - Limited Liability Partnership is the most flexible form of business where the partners themselves frame the rules for their governance.

•         Perpetual Succession for partners - The registration of LLP gives it a separate status of a legal entity, i.e. a legal entity separates from its partners. So, this gives the LLP perpetual succession.

•         No Minimum Capital Requirements - For the purpose of registration, there is no requirement of such minimum capital for a LLP. It is an internationally renowned form of business and can be easily registered online.

•         No Limit on Partner - There are no restrictions as to the maximum number of partners in an LLP, so even if there are 2 partners in the LLP, they can register it successfully.

•         Government Subsidies - Registering the LLP helps in getting certain subsidies and reliefs from the government like tax exemption. Unlike a company, no tax is levied on profit distributed to the partners.

•         Partner's Limited Liability - LLP mode of business, limits the liabilities of the partners i.e. the personal assets of the partner are not exposed except in case of fraud. No partner in an LLP shall be liable for the misconduct of the other partner(s).


•         Two Partners: A minimum of two partners is required for the registration of the LLP in Pune.

•         Designated Partners: At least two partners must be the designated partners.

•         Registered Office: The registered office of the proposed LLP must be situated in Pune.

•         Designated Partner to be resident of India: At least one of the designated partners must be a resident of Pune possessing all the valid ID Proof for the purpose of obtaining DPIN.

•         No Capital Requirement: There is no such minimum capital requirement for formation of a LLP.

•         Documents: Necessary documents are required for the purpose of registration. Such documents are PAN Card/ID Proof of the Partners, Address proof of the registered office of the LLP, and Address proof of the partners.



•         Low Formation and Registration charges: The cost and expenses of incorporation of an LLP in Pune are less as compared to those of a Company. The registration fee is also economic. Therefore, it is easy to establish a LLP.

•         No maximum number of partners: There are no restrictions as to the upper limit of partners in a LLP, so if there are at least 2 partners in the LLP, they can register it successfully.

•         No minimum capital requirement: There is no minimum capital requirement for the purpose of formation of LLP as compared to a Company. A LLP can be formed with the least contributed capital.

•         Certain Tax exemptions: Registering the LLP helps in getting certain subsidies and reliefs from the government like tax exemption. Unlike a company, no tax is levied on profit distributed to the partners.

•         Separate Legal Entity: Once the LLP get registered it has a separate legal status and it is treated as a separate person in the eyes of law. This means that the LLP has a separate legal existence from that of its partners.

•         Flexibility: The formation of LLP ensures flexibility in LLP incorporation, operations, and management without imposing detailed legal and procedural requirements.

•         Perpetual Succession: Even if the partners of the LLP keep changing, the LLP exists.

•         Internationally renowned: LLP is an internationally renowned form of business in comparison to a Company.

•         Limited Liability of Partners: The partners of LLP have limited liability which means that the personal assets of the partners are not liable to be sold off during any contingency except in case of fraud by the partner.

TIME TAKEN in registration process


Frequently Asked Questions

Q1. What is a LLP?

LLP i.e. Limited Liability Partnership is a Mix of both Private Limited Company and Partnership Firm. A Partner’s Liability is limited by the Amount of his Share into the LLP. A partner is not liable for another partner’s default.


Q2. How many Partners are required to incorporate an LLP in Pune?

Minimum of 2 Partners is required to incorporate an LLP in Pune.


Q.3 Is a Limited Liability Partnership apt for Raising Funds?

No, LLP is not the right structure for raising funds from private investors. Investors prefer a stake via equity of a company rather than being a partner in an organisation.


Q.4 What is a DSC i.e. a Digital Signature Certificate?

DSC is considered as an identity of a partner. It’s an electronically encrypted signature unique to a particular person and has been made mandatory by MCA for the partners of an LLP.


Q.5 Minimum Capital Required to Incorporate a LLP?

Incorporation of LLP in Pune, does not have any requirement of minimum capital, an LLP can be incorporated with any amount of Capital as decided amongst the Partners.


Q.6 Who can be a Partner in a LLP?

A person should be 18 Years or above in age. No limitation on their residency and citizenship. Foreign Nationals and foreign Companies can also form a LLP in India provided there is at least one partner who is an Indian Resident.


Q.7 Can an LLP be converted into a Pvt Ltd. Company?

Currently no, an LLP can’t be converted into a Pvt. Ltd. Company, as they are governed by 2 different Acts and both of them, are silent on this matter, but vice-versa is possible.

Q.8 Can a Partnership Firm be converted into a LLP?

Partnership Firm can be converted into an LLP and it’s very advantageous to do so, as the liability of the Partners become limited to their share amount.


Q.9 Is it mandatory to file and get registered the partnership agreement under LLP?

It is mandatory to execute and file LLP Agreement in view of Section 2(o) & (q), 22 and 23 of the Act. As provided in the LLP Act, in the absence of agreement as to any matter, the mutual rights and liabilities shall be as provided under Schedule I to the Act.


Q.10 Can an existing company converted to LLP?

Yes, any existing private company or existing unlisted public company can be converted into LLP by complying with the Provisions of clause 58 and Schedule III and IV of the LLP Act. Form 18 needs to be filed with the registrar along with Form 2 for such conversion.


Q.11 Can a listed company be converted to LLP?

No, only private/unlisted public company can be converted into a LLP registration in india .


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