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7-Step Guide For Setting up LLP in India


Entrepreneurs setting up business in India must consider registering the new entity as a Limited Liability Partnership (LLP). Setting up an LLP in India allows business owners to enjoy the benefits of a partnership as well as a company. Such organizations are treated as separate legal entities like companies. Moreover, the liability of each partner is restricted to the investment made by him/her. The regulatory compliances of such entities are also less. This advantageous concept of business incorporation was introduced in the country in 2008. LLPs allow people to start a venture with other partners without the threat of unlimited liability. Lets’ see how an LLP can be created in the country.

1. Identify Partners For The New Business

The first step is to identify the partners for the new venture. Once you have uncovered an exciting idea and created a detailed business plan, you must put the proposal in front of potential associates. Look for people who have expertise in the industry you are entering. It will be sensible to ensure that the prospective allies are honest and dependable. An LLP must have a minimum of 2 partners one of whom must be a resident Indian. However, there is no limit on the maximum number of partners such an organization can have.

2. Get DSCs For All The Partners

The incorporation process is online and all the documents that need to be filed must be signed electronically. This makes it essential to get the Digital Signature Certificates (DSC) for all the partners of the new venture. There are various certifying agencies recognized by the government, which issue these certificates. These licenses come in different categories called classes and you must get a Class-II or above category DSC. The Ministry of Corporate Affairs has specified that only such licenses can be sued for electronic submissions.

3. Acquire DINs For The Designated Associates

The next step in the process of setting up an LLP in India is to acquire the Director Identification Numbers (DIN) for all partners. This is an 8-digit unique number which the government allots to individuals wishing to become directors in a company. An application has to be made through the eForm DIR-3 for the purpose. This identification device is unique to a person and is valid for his/her entire lifetime. In case, you already have a DIN, there is no need to make a fresh application.

4. Register On The MCA Portal

In order to submit an electronic form on the MCA portal, you will have to first register as a user. You can do this by visiting the MCA website and providing the necessary details. Fill the form and create an ID. Make sure to save the username and password in a secure location.

5. Reserve A Unique Name For The New Entity

You will now have to reserve a unique name for the new business. Use the MCA’s Reserve Unique Name (RUN) service for the purpose. The username and password created in the previous step will be needed to log in to the service. Users pay a specified fee to apply for name reservation.

6. Apply For LLP Incorporation

The Form for incorporation of Limited Liability Partnership (FiLLiP) must be filed with the Registrar of Companies of your jurisdiction along with the prescribed fees for incorporating the LLP. Applicants must provide their ID and address proofs as well as the entity’s registered office proof. This form can also be used for DPIN/ DIN application for an associate who does not have one. Name reservation can also be done through FiLLiP.

7. File The Partnership Agreement

The final step is to draft the LLP agreement on a stamp paper and file it with the MCA within 30 days from the date of registration. This document defines the responsibilities and right of all the partners. You must use Form 3 to make the online submission on the MCA portal.


The process of setting up an LLP in India can be complicated for new business owners. Entrepreneurs must engage startup lawyers in India who specialize in assisting people in starting and incorporating new commercial organizations.

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hellen jones

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