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Limited Liability Partnership (LLP) is one of the most preferred business structures in India for entrepreneurs and professionals who want to combine the benefits of a partnership and a private limited company. Introduced under the Limited Liability Partnership Act, 2008, an LLP offers the flexibility of a partnership while providing limited liability protection to its partners. This business form is ideal for startups, small and medium enterprises, and professional firms like CA, CS, lawyers, and consultants who prefer minimal compliance and liability protection. In this article, we’ll discuss in detail how to register an LLP in India, the step-by-step process, required documents, and the benefits of forming an LLP. 1. What is an LLP? A  Limited Liability Partnership (LLP)  is a hybrid business entity that merges the characteristics of both a partnership and a private limited company. It provides limited liability to its partners, meaning the personal assets of partners are p...

1. Introduction to Limited Liability Partnership (LLP) – A Limited Liability Partnership (LLP) is a mix of partnership and corporation. In India, LLP or limited liability partnership is perfect for professional services such as law, accounting, and consulting firms which were introduced under the Limited Liability Partnership Act, 2008. In contrast to traditional partnerships, LLPs are separate legal entities, so partners are liable only for their investment and their own negligence, but not for the actions of other partners or the firm’s obligations. An LLP needs a minimum of two partners upon incorporation and does not have a maximum number of partners. This is required to register with the Ministry of Corporate Affairs along with a unique name for the business as well as a registered address. A LLP agreement delineates details such as the sharing of profits, dispute resolution procedures, and the duties of members. Limited liability, operational freedom, and pass-through taxati...