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LLP

Limited liability partnership

Approval: MCA FiLLiP incorporation · foreign contribution reported as LLP(I) on FIRMS

Partners' liability is limited to their contribution. No minimum capital and low upkeep suit small services such as consulting, design and IT. Foreign contribution is allowed only in 100% automatic-route sectors without FDI-linked conditions.

Can and can't do

AllowedOfficial

Consulting, IT and design services

Most services are 100% automatic-route sectors.

Source: calcguru.in ·
AllowedOfficial

Manufacturing

Allowed where 100% automatic route applies.

Source: calcguru.in ·
AllowedOfficial

External commercial borrowing

LLPs can raise ECB since 16 February 2026.

Source: roedl.com ·
Not allowedOfficial

All designated partners foreign

Of 2+ designated partners, one must stay 120+ days in India in the financial year.

Source: setindiabiz.com ·
Not allowedOfficial

Real estate, agriculture, print media

Sectors with conditions or below 100% automatic are closed to foreign-funded LLPs.

Source: calcguru.in ·
Not allowedOfficial

Raising equity by issuing shares

LLPs have no shares; choose a company if you plan to raise equity.

Source: india-briefing.com · checked

RBI/MCA steps & deadlines

Name reservation RUN-LLP (valid 3 months)
Source: calcguru.in ·
MCA
FiLLiP → certificate with PAN and TAN
Source: calcguru.in ·
MCA
LLP agreement (Form 3) and stamp duty
Source: calcguru.in ·
MCA
Report foreign contribution as LLP(I)
Source: calcguru.in ·
RBI

Documents

  • Partner (parent) registry extract, board resolution, nominee authorisation
  • Designated partners' passport, address proof, photo, DSC
  • Registered office proof
  • LLP agreement (profit share, contributions, exit)

Tax

LLPs pay 30% plus 12% surcharge above ₹1 crore and 4% cess. The 22% company regime isn't available, but profit distribution carries no dividend tax.

Source: india-briefing.com · checked

Costs

Name reservation₹200Official Source: calcguru.in ·
FiLLiP feeUp to ₹1 lakh ₹500 · ₹1–5 lakh ₹2,000 · ₹5–10 lakh ₹4,000 · ₹10–25 lakh ₹5,000Official Source: calcguru.in ·
Agreement stamp dutye.g. Telangana ₹500, Delhi 1% (max ₹5,000), Maharashtra 1% (max ₹15,000)To confirm Source: calcguru.in ·
All-in (2 partners, small contribution)Example: ₹6,000–₹18,000Example Source: calcguru.in ·

Timeline

To certificate10–15 working daysOfficial Source: calcguru.in ·
PROPERTY

Registered office via Adullam Property

Small service LLPs often start in a virtual or shared office.

Open Adullam Property →

Recent cases

Reported cases plus illustrative examples within real ranges; examples are labelled.

Example

Illustrative: the parent and founder as partners, an Indian manager as resident designated partner.

Example

Illustrative: an offshore development centre started as an LLP.

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LLP · Adullam Incorporation