A Limited Liability Partnership is a modern business entity that combines the operational flexibility of a partnership with the legal security of limited liability for its partners. Governed by the LLP Act, an LLP is considered a separate legal entity from its partners. It has the capacity to hold property, initiate or defend legal actions in its name, and carry out business activities as an independent body corporate.
LLPs are increasingly preferred by small and medium enterprises, professional service firms, and start-ups due to their simplified compliance requirements and robust legal framework. The process of incorporating an LLP involves specific statutory steps that are designed to ensure transparency, compliance, and proper governance.
Key Features of an LLP
- Separate Legal Entity distinct from its partners
- Limited liability protection to all partners
- Perpetual succession regardless of changes in partnership
- No minimum capital requirement
- Flexible internal structure governed by LLP Agreement
- Fewer compliance formalities compared to companies
Pre-requisites for LLP Incorporation
Incorporating an LLP requires meeting certain mandatory requirements that form the foundation for successful registration. The essential prerequisites are:
Minimum Number of Partners
A Limited Liability Partnership must have at least two partners to be eligible for incorporation. These partners can be individuals or corporate bodies. There is no upper limit on the number of partners, allowing flexibility for business expansion.
Designated Partners and Resident Requirement
Out of the total partners, a minimum of two must act as Designated Partners who bear responsibility for legal compliances and filings. At least one of these Designated Partners must be a resident in India, which means they must have stayed in India for a period of not less than 182 days during the preceding financial year.
Digital Signature Certificates (DSC)
Since all incorporation-related filings are processed online via the Ministry of Corporate Affairs (MCA) portal, it is mandatory for all Designated Partners to obtain a Digital Signature Certificate. The DSC is issued by government-recognized certifying authorities and is valid for two years. The application for DSC requires submission of the applicant’s PAN card, address proof, and a recent passport-size photograph.
Choosing the Name of LLP
Selecting a suitable name is a critical step in the incorporation process. The name of the proposed LLP should align with its intended business activities and must adhere to the naming guidelines prescribed by the MCA. The name should not be identical or too similar to existing LLPs, companies, or registered trademarks.
Registered Office Address
An LLP must have a registered office address in India, which serves as the official address for correspondence and legal notices. Documentary evidence such as a lease agreement, rent receipts, utility bills, and a No Objection Certificate (NOC) from the property owner are required as proof.
LLP Agreement
The LLP Agreement is a foundational document that outlines the rights, responsibilities, and profit-sharing ratios among partners. It also defines governance mechanisms, contribution terms, dispute resolution clauses, and procedures for admission, retirement, or removal of partners.
Recent Amendments Affecting LLP Incorporation
The Ministry of Corporate Affairs introduced significant amendments to the LLP incorporation process through various notifications and rules. The Limited Liability Partnership (Second Amendment) Rules, 2018 revamped the process, while the Limited Liability Partnership (Second Amendment) Rules, 2022 further streamlined the procedure with digital integrations.
Name Reservation through RUN-LLP Service
To begin the incorporation process, the applicant must reserve the proposed name using the Reserve Unique Name – LLP (RUN-LLP) web-based service. The application allows submission of two proposed names in order of preference, accompanied by justification for the names selected.
The MCA examines the application for conformity with the prescribed naming guidelines. If both names are rejected, the applicant is provided another opportunity to submit two additional names. Upon approval, the selected name is reserved for a period of 90 days.
Government Fees for Name Reservation
The government fee for filing a RUN-LLP application is Rs. 1,000. Digital Signature Certificates and Director Identification Numbers are not required at this stage. However, it is mandatory to have a registered account on the MCA portal to file the RUN-LLP application.
Document Preparation after Name Approval
Once the name is reserved, the next step is to prepare a comprehensive set of incorporation documents. These include:
- Proof of registered office address (lease agreement, conveyance deed, rent receipts)
- No Objection Certificate from the property owner
- Utility bills not older than two months
- Consent of partners and subscription sheet
- Identity and residential proof of Designated Partners without DIN
- Details of directorships or partnerships held by the proposed partners in other entities
- Approvals for names containing restricted terms or expressions requiring prior government approval
Filing the FiLLiP Form for Incorporation
The FiLLiP (Form for Incorporation of LLP) is the primary form required for registering an LLP. It has replaced the erstwhile LLP Form 2. The FiLLiP form allows for simultaneous application of DIN (Director Identification Number) for up to two Designated Partners. In cases where more than two partners require DINs, the remaining partners must apply separately post-incorporation.
The FiLLiP form can also be used to reserve the LLP name, if not previously reserved through RUN-LLP. The form is filed online through the MCA portal, digitally signed by the Designated Partners, and certified by a practicing professional such as a Chartered Accountant, Company Secretary, or Cost Accountant.
Submission and Processing of FiLLiP Form
After filing, the Central Registration Centre (CRC) reviews the FiLLiP form. If discrepancies or additional information is needed, the CRC issues a resubmission request. The applicant is allowed up to two resubmission opportunities within a cumulative period of 20 days. Once all discrepancies are cleared, the CRC approves the application.
Issuance of Certificate of Incorporation
Upon approval of the FiLLiP form, the Ministry of Corporate Affairs issues the Certificate of Incorporation in Form 16. The certificate contains the LLP Identification Number (LLPIN), which serves as the unique identifier of the LLP. The date mentioned in the Certificate of Incorporation is considered the effective date of establishment of the LLP.
Application for PAN and TAN
Earlier, LLPs were required to apply separately for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN). However, the amended incorporation process has integrated the allotment of PAN and TAN along with the issuance of the Certificate of Incorporation. This simplifies the post-incorporation formalities, ensuring the LLP receives these crucial identifiers automatically.
Drafting the LLP Agreement
The LLP Agreement formalizes the mutual rights and duties of the partners and lays down the operational framework of the LLP. Essential components of the LLP Agreement include:
- Name and principal business activities of the LLP
- Contribution of each partner and the manner of contribution
- Profit-sharing ratios
- Rights, responsibilities, and obligations of partners
- Admission, resignation, and retirement of partners
- Dispute resolution mechanisms
- Governance procedures and decision-making protocols
- Rules for expulsion or cessation of a partner
Execution and Filing of LLP Agreement
The LLP Agreement must be printed on non-judicial stamp paper, the value of which is determined as per the applicable State Stamp Act. The agreement is signed by all partners and witnessed appropriately.
Once executed, the LLP Agreement must be filed with the MCA in Form-3 within 30 days from the date of incorporation. Failure to file within the stipulated time attracts a late fee of Rs. 100 per day of delay.
Important Provisions Regarding DIN Allotment
Under the latest amendments, up to five individuals can now apply for DIN through the FiLLiP form at the time of incorporation. This relaxation simplifies the process of appointing multiple Designated Partners without DINs during incorporation itself. Any additional Designated Partners can be added post-incorporation by filing appropriate forms.
Web-Based Forms and DigiLocker Integration
The incorporation process has been digitized with the introduction of web-based forms, eliminating physical forms and manual data entry. Furthermore, partner details can now be auto-fetched from DigiLocker, streamlining documentation and reducing errors.
Latitude and Longitude Details for Registered Office
Applicants must now provide the geographical coordinates (latitude and longitude) of the LLP’s registered office address at the time of incorporation. This aids in precise identification and verification of business locations.
Filing and Documentation for LLP Incorporation
After fulfilling the primary pre-requisites such as obtaining Digital Signature Certificates and reserving the proposed name, the next critical phase involves documentation, e-form filing, and procedural compliances. This segment explains the practical steps involved in the incorporation of a Limited Liability Partnership from documentation to the issuance of the incorporation certificate.
Preparation of Documents for LLP Incorporation
Before filing the incorporation form, applicants must prepare a comprehensive set of documents required by the Ministry of Corporate Affairs. These documents serve as proof of identity, address, ownership, and consent for the formation of the LLP.
Mandatory Documents Required:
- Proof of Registered Office Address (Lease Deed, Rent Agreement, or Ownership Document)
- Recent Utility Bill (Electricity, Gas, Water, or Telephone Bill not older than 2 months)
- No Objection Certificate from the property owner, if applicable
- Subscribers’ Sheet signed by all partners confirming their consent
- Proof of Identity and Address for partners and designated partners without DIN
- Digital Signature Certificates of all Designated Partners
- Details of other LLPs or Companies where proposed partners are directors or partners
- Approvals required for restricted names or business activities that need prior regulatory consent
The FiLLiP Form – Incorporation of LLP
Form FiLLiP (Form for Incorporation of Limited Liability Partnership) is the principal e-form that initiates the incorporation process. It is designed to integrate multiple compliances and applications such as DIN allotment, name reservation, and LLP registration into a single form.
Key Features of FiLLiP Form:
- Allows application for DIN for up to five individuals at the time of incorporation
- Facilitates name reservation directly in FiLLiP, if not done through RUN-LLP earlier
- Incorporates all essential information regarding partners, business address, and registered office details
- Requires professional certification by a Chartered Accountant, Company Secretary, or Cost Accountant
- Digital Signatures of all Designated Partners are mandatory in FiLLiP submission
Filing and Processing of FiLLiP Form
Once FiLLiP is prepared and signed digitally, it must be uploaded on the MCA portal through the applicant’s registered account. The form is examined by the Central Registration Centre (CRC), which verifies the completeness and accuracy of information submitted.
Resubmission and Approval Process:
If the CRC identifies discrepancies or missing documents, it may send a resubmission request. Applicants are granted up to two opportunities for resubmission, with a cumulative resubmission window not exceeding 20 days. Failure to rectify errors within this period results in rejection of the application.
Upon successful verification, the Certificate of Incorporation (CoI) is issued in Form 16, which officially confirms the registration of the LLP.
LLP Identification Number (LLPIN)
The Certificate of Incorporation contains a unique alphanumeric code called LLP Identification Number. This number is used for all future filings, statutory returns, and communications with regulatory authorities.
Allotment of PAN and TAN along with Incorporation
One of the significant advancements introduced in the incorporation process is the automatic allotment of Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) along with the Certificate of Incorporation.
This eliminates the need for filing separate applications for PAN and TAN with the Income Tax Department. The PAN and TAN details are mentioned on the Certificate of Incorporation itself, streamlining post-incorporation compliance.
Drafting and Execution of LLP Agreement
The LLP Agreement is a legal document that outlines the framework under which the LLP will operate. It specifies the rights and duties of partners, profit-sharing ratios, contributions, governance rules, dispute resolution mechanisms, and other critical matters.
Key Clauses in LLP Agreement:
- Name of LLP and Business Objectives
- Registered Office Details
- Names and Designation of Partners
- Capital Contributions by Partners and Contribution Interest
- Profit Sharing Ratio among Partners
- Duties, Powers, and Responsibilities of Partners and Designated Partners
- Rules for Admission, Retirement, Resignation, and Expulsion of Partners
- Governance Procedures for Decision Making and Voting Rights
- Procedures for Dispute Resolution among Partners
- Indemnity and Liability Clauses
The LLP Agreement is required to be executed on non-judicial stamp paper as per the applicable State Stamp Duty rates. It must be signed by all partners and attested by witnesses.
Filing of LLP Agreement in Form-3
The LLP Agreement, once executed, needs to be filed with the Registrar of Companies in Form-3. The form should be submitted within 30 days from the date of incorporation. Filing delays attract a late fee of Rs. 100 per day until compliance is achieved.
Form-3 captures critical information such as business activities, profit-sharing ratios, governance structures, and operational rules outlined in the LLP Agreement. The form must be digitally signed by a designated partner and certified by a practicing professional.
Changes in LLP Incorporation Process under LLP (Second Amendment) Rules, 2022
The incorporation process has been significantly simplified through the introduction of web-based forms, increased DIN allotment capacity, and integration of PAN and TAN applications.
Increase in DIN Allotment
Previously, DIN allotment through FiLLiP was restricted to only two Designated Partners. Under the amended rules, up to five individuals can now apply for DIN at the time of incorporation, reducing post-incorporation formalities.
Web-Based Forms and DigiLocker Integration
All incorporation forms have transitioned to a web-based platform, minimizing data entry errors. Furthermore, applicant details can now be fetched directly from DigiLocker, ensuring data accuracy and simplifying documentation.
Latitude and Longitude of Registered Office
Applicants are required to provide the geographical coordinates (latitude and longitude) of the registered office during incorporation. This initiative enhances traceability and ensures accurate location mapping of businesses.
Compliance Requirements Post-Incorporation
Following the successful incorporation of an LLP, there are certain ongoing compliance obligations that must be adhered to by the partners.
Display of Name and LLPIN
The name of the LLP and its LLPIN must be displayed conspicuously outside every office or place of business. The LLP’s name should also be mentioned on all official communications, invoices, and publications.
Stationery and Correspondence Requirements
All business letters, invoices, and official correspondence must include the following particulars:
- Name of the LLP
- Registered Office Address
- LLPIN Number
- Contact Information
- Email Address (if applicable)
Registered Office and Change Thereof (Section 13)
Every LLP must maintain a registered office where official communications are addressed. Any change in the registered office must be notified to the Registrar in Form-15.
Conditions for Change of Registered Office:
- If the LLP agreement is silent, consent from all partners is required for changing the registered office.
- In case of change from one state to another, consent of secured creditors is mandatory.
- A public notice must be published in a newspaper (English and local language) 21 days prior to filing Form-15 for inter-state change.
- The change is effective only after filing Form-15 and obtaining approval from the Registrar.
Failure to comply with the provisions related to the registered office attracts monetary penalties for the LLP and its partners.
Provisions Regarding LLP Name and Change Therein (Sections 15 to 21)
An LLP’s name is an essential component of its identity and is subject to regulatory guidelines. The following are the key aspects related to the naming of an LLP:
Last Words in LLP Name
Every LLP’s name must end with the words “Limited Liability Partnership” or the abbreviation “LLP”.
Prohibited Names
An LLP cannot be registered with a name that is deemed undesirable by the Central Government. Names that are identical or too closely resemble existing LLPs, companies, or registered trademarks are not permitted.
Central Government’s Power to Direct Name Change
If an LLP is registered with a name that resembles an existing LLP, company, or registered trademark, the Central Government may direct the LLP to change its name within a period of three months. The proprietor of a registered trademark can make an application to the Regional Director for initiating this process within three years of the LLP’s incorporation.
Procedure for Change of LLP Name
Once the Central Government issues a direction to change the name, the LLP must file the notice of change in Form-5. The Registrar updates the Certificate of Incorporation and the LLP is required to amend its LLP Agreement within 30 days of the name change.
Allotment of New Name in Case of Default
If the LLP fails to comply with the direction to change its name, the Registrar will allot a new name with the suffix “ORNDC” (Order of Regional Director Not Complied) along with the year and LLPIN. This name must be used on all official correspondence until the LLP changes its name as per statutory requirements.
Penalties for Non-Compliance
Non-compliance with the provisions related to the registered office, change of name, or procedural filings attracts fines ranging from Rs. 2,000 to Rs. 25,000 for the LLP and its partners. Persistent non-compliance may lead to legal action and disqualification of designated partners.
Post-Incorporation Compliance of LLPs
Once a Limited Liability Partnership is incorporated and receives its Certificate of Incorporation, it becomes imperative for the LLP and its partners to adhere to various post-incorporation compliance requirements under the LLP Act and allied regulations. These compliance obligations ensure that the LLP maintains its legal standing and avoids penalties. We discuss the post-incorporation obligations, annual filings, amendments introduced in the regulatory framework, and provisions concerning statements of solvency and annual returns.
Filing LLP Agreement with the Registrar
After incorporation, the foremost compliance obligation is filing the LLP Agreement with the Registrar of Companies within 30 days from the date of incorporation. This filing is executed through Form-3, accompanied by a copy of the executed LLP Agreement.
Failure to file the LLP Agreement within the stipulated time attracts a late filing fee of Rs. 100 per day until the compliance is completed. The LLP Agreement outlines the governance structure of the LLP, contribution details of partners, profit-sharing ratios, dispute resolution procedures, and operational protocols.
Maintenance of Statutory Records and Books of Accounts
An LLP is required to maintain proper books of accounts, which may be maintained on a cash basis or accrual basis. The records should accurately reflect the financial transactions of the LLP and must be preserved at the registered office.
Statutory Registers and Records Include:
- Partners’ Register
- Contribution and Profit-Sharing Register
- Register of Charges, if any
- Minute Books of Partners’ Meetings (if maintained)
- Books of Account, including receipts, payments, sales, purchases, and financial statements
The LLP Act mandates that these records must be preserved for a minimum period of eight years.
Statement of Account and Solvency (Form 8)
Every LLP is required to file a Statement of Account and Solvency annually. This filing is executed through Form-8, which must be submitted within 30 days from the end of six months of the financial year, i.e., by 30th October every year.
Contents of Form 8:
- Declaration of Solvency by Designated Partners
- Statement of Assets and Liabilities
- Statement of Income and Expenditure
- Details of contingent liabilities, if any
Under the amended rules, if the LLP is undergoing insolvency proceedings, the Statement of Account and Solvency must be signed by the interim resolution professional or liquidator, rather than the Designated Partners.
Annual Return of LLP (Form 11)
An LLP is required to file an Annual Return in Form-11 within 60 days of the closure of the financial year, i.e., by 30th May every year. Form-11 contains details of all partners, their contributions, and changes during the year.
The Annual Return is mandatory even if the LLP has not undertaken any business during the financial year. Failure to file Form-11 within the due date leads to late filing fees of Rs. 100 per day.
Income Tax Filings and Financial Statements
Apart from the ROC compliances, LLPs are also required to file their Income Tax Return annually, regardless of the volume of business. The due date for filing Income Tax Return is 31st July for LLPs that are not required to undergo audit and 31st October for LLPs that are liable for audit under the Income Tax Act.
An LLP whose annual turnover exceeds Rs. 40 lakhs or whose contribution exceeds Rs. 25 lakhs is mandatorily required to get its accounts audited by a Chartered Accountant.
Other Post-Incorporation Compliances
Opening of Bank Account
After incorporation, an LLP must open a bank account in the LLP’s name for conducting business transactions. The bank account opening requires submission of the Certificate of Incorporation, LLP Agreement, PAN, and KYC documents of Designated Partners.
Goods and Services Tax (GST) Registration
If the LLP’s annual turnover exceeds the threshold limit prescribed under GST laws (Rs. 20 lakh in most states, Rs. 10 lakh in special category states), or if it engages in interstate supply of goods/services, it must obtain GST registration.
Shops and Establishment Registration
Depending on the state-specific regulations, an LLP may need to obtain Shops and Establishment registration within a stipulated period after commencement of business activities.
LLP (Second Amendment) Rules, 2022 – Impact on Compliance Procedures
The Limited Liability Partnership (Second Amendment) Rules, 2022 introduced several procedural changes to ease compliance and improve transparency in the filing processes.
Consent to Act as Partner (Form-9) Made Web-Based
Earlier, consent to act as a Designated Partner was required in a physical format. The amended rules made Form-9 web-based, necessitating Digital Signatures of all Designated Partners at the time of incorporation.
Integration of PAN and TAN Allotment
The process of applying for PAN and TAN has been integrated with the issuance of the Certificate of Incorporation, reducing paperwork and ensuring timely availability of these tax identification numbers.
Merging of Forms 28 and 29
Forms 28 and 29, earlier used for filing notices regarding alterations in the COI or changes in authorized representatives for foreign LLPs, have been merged into a single Form 28. This change aims to simplify the procedural requirements for foreign LLPs operating in India.
Amendments to LLP Deed Filing
Form-3 has been revised to capture precise information regarding changes made to the LLP Deed. The new format emphasizes accurate disclosure of amendments in terms of contribution, profit-sharing, and partner changes.
Annual Return (Form-11) Enhanced Disclosure
The revised Form-11 now requires LLPs to report penalties, offences compounded during the financial year, and pending litigation details. This addition strengthens regulatory oversight and ensures greater corporate governance.
Penalties and Consequences of Non-Compliance
LLPs that fail to comply with statutory filing requirements are liable for monetary penalties. Persistent non-compliance can lead to disqualification of Designated Partners and may trigger legal actions under the LLP Act.
Penalties Include:
- Late Filing Fee of Rs. 100 per day for Form-3, Form-8, and Form-11
- Minimum fine of Rs. 2,000 up to Rs. 25,000 for non-compliance with registered office requirements
- Imprisonment up to 2 years and fine ranging from Rs. 10,000 to Rs. 5,00,000 for making false statements knowingly in incorporation or annual filing documents
Effect of Registration – Legal Rights and Corporate Identity
Once the Certificate of Incorporation is issued, an LLP enjoys the status of a legal entity distinct from its partners. This recognition enables the LLP to perform various corporate activities.
Rights Conferred Upon Incorporation:
- The LLP can sue or be sued in its own name
- It can acquire, hold, and dispose of movable and immovable property
- The LLP may have a common seal, though it is not mandatory
- It can enter into contracts, borrow funds, and conduct business transactions in its name
Change in Registered Office – Process and Conditions
An LLP may change its registered office by adhering to the prescribed procedure. The change can be within the same state or from one state to another.
Intra-State Change of Registered Office:
- Obtain consent of partners, if LLP agreement does not specify a process
- File Form-15 with Registrar within 30 days of the change
- Update stationery and official correspondence with new address
Inter-State Change of Registered Office:
- Obtain consent of all partners and secured creditors
- Publish a general notice in an English daily and vernacular newspaper at least 21 days prior to filing Form-15
- File Form-15 with supporting documents and proofs of publication
- Registrar will approve the change post verification
LLP Name Change – Circumstances and Procedure
LLPs may be directed to change their names by the Central Government if the name is found to be identical or too closely resembles another LLP, company, or registered trademark.
Procedure for Change of Name:
- Upon receipt of direction, file an application in Form-5 for name change within three months
- Registrar will issue a fresh Certificate of Incorporation with the new name
- Update the LLP Agreement accordingly and file revised Form-3
Default in Name Change Compliance:
If an LLP fails to change its name as directed, the Registrar will suo motu allot a new name comprising the acronym “ORNDC” (Order of Regional Director Not Complied), the year, and the LLPIN. This name will be reflected on the Certificate of Incorporation, and the LLP must display this name on all correspondence and publications until rectification.
Additional Post-Incorporation Considerations for LLPs
Appointment of Additional Designated Partners
Post-incorporation, an LLP may add new Designated Partners by filing DIR-3 for DIN allotment, followed by the necessary changes in the LLP Agreement and filing of Form-4 for appointment notification.
Contribution Changes and Impact on Compliance
Any changes in the partners’ contributions must be documented in the LLP Agreement and notified through Form-3. Timely disclosure of these changes is essential to maintain compliance with the LLP Act.
Cessation of Partnership
The resignation, retirement, or cessation of a partner or Designated Partner requires amendments in the LLP Agreement and filing of Form-4 with the Registrar. The outgoing partner must also provide consent and execute relevant documents as part of the exit process.
Business Licenses and Industry-Specific Registrations
Depending on the nature of business activities, an LLP may require additional licenses such as Import Export Code (IEC), Professional Tax Registration, Food Safety License (FSSAI), or sector-specific registrations as mandated by regulatory authorities.
Compliance with Foreign Direct Investment (FDI) Regulations
If an LLP receives foreign investment, it must comply with FDI guidelines issued by the Reserve Bank of India. LLPs engaged in sectors where 100% FDI is permitted under the automatic route can receive foreign investments, subject to prescribed conditions.
Conclusion
The formation and incorporation of a Limited Liability Partnership (LLP) is a structured yet flexible process that balances the benefits of limited liability with the operational ease of a partnership model. The procedure begins with fulfilling pre-requisites such as having at least two partners, procuring Digital Signature Certificates, and reserving an appropriate name for the LLP. With the introduction of the FiLLiP form and RUN-LLP service, the process has become more streamlined, allowing for integrated applications for name reservation, DIN allotment, and incorporation in a single window system.
The post-incorporation phase is equally critical, requiring timely filing of the LLP Agreement, obtaining statutory registrations like PAN and TAN (now integrated with incorporation), and adhering to compliance mandates such as maintenance of statutory registers, books of accounts, and annual filings through Form-8 and Form-11. The amendments introduced via the Limited Liability Partnership (Second Amendment) Rules, 2022, have further simplified compliance by digitizing forms, increasing the number of Designated Partners that can apply for DIN at incorporation, and integrating PAN and TAN allotment with the Certificate of Incorporation.
Apart from procedural aspects, LLPs must remain vigilant in fulfilling ongoing compliance obligations, including taxation, statutory disclosures, amendments to the LLP Agreement for any structural changes, and timely filings to avoid penalties. The provisions related to the registered office, change of name, and compliance reporting through forms have been meticulously designed to enhance corporate governance while reducing administrative burden.
The legal identity conferred upon an LLP after incorporation allows it to function as a separate corporate entity with rights to own property, enter into contracts, sue and be sued, and carry on business under its registered name. However, this privilege comes with the responsibility of maintaining transparency, legal compliance, and adherence to the provisions of the LLP Act and allied rules.
In essence, the LLP structure offers a balanced corporate framework suitable for professionals, startups, small businesses, and joint ventures seeking operational flexibility with the safeguard of limited liability. With the continuous evolution of regulatory procedures and the introduction of digital processes, the formation and management of LLPs in India has become more efficient, transparent, and entrepreneur-friendly.