Limited Liability Partnership

Limited Liability Partnership

The Limited Liability Partnership (LLP) have a minimum of two partners. There is no restriction as to the maximum number of partners in a LLP. Every LLP should have at least 2 designated partners and at least 1 should be resident in India.

Who Can Be Partner In LLP


  • An individual
  • Indian private and / or public company
  • Foreign company
  • Any other LLP
  • LLP registered outside India

Who Cannot Be Partner In A LLP


  • A corporation sole
  • A co-operative society
  • Any other person not specified in above Para on ‘who can be partner in LLP’

Who Can Be Partner In LLP


  • Easy and less expensive formation
  • Flexibility in management
  • No requirement of any minimum capital contribution by partners.
  • No restriction as to maximum number of partners.
  • LLP is a separate legal entity.
  • Partners are not liable for acts of other partners.
  • Low Compliance cost.
  • No exposure to personal assets of the partners except in case of fraud.
  • Less requirement as to maintenance of statutory records.
  • Less Government Intervention.
  • Easy to dissolve or wind-up.
  • Professionals can form Multi-disciplinary Professional LLP, which was not allowed earlier.
  • No requirement as to Minimum Alternate Tax as on Date.
  • Taxation of LLPs