Looking to start a business in India without full corporate formalities? An LLP combines flexibility, protection, and simplicity—making it perfect for professionals, freelancers, and small teams.
1. What Is an LLP?
An Limited Liability Partnership is a registered partnership where each partner’s liability is limited to the capital they contribute. It’s a standalone legal entity — meaning it can own assets, enter contracts, and face legal action, independently of its partners.
2. Major Advantages of LLPs
Shielded Liability : Personal assets remain protected if the business faces losses.
Corporate Identity : Unlike unregistered partnerships, LLPs enjoy legal recognition.
Low Compliance : Simple filings and exemptions from compulsory audits for smaller LLPs (turnover under ₹40 lakh and contributions under ₹25 lakh).
Flexible Ownership: No minimum capital needed, and partners can be added or change roles easily.
3. Is LLP Ideal for You?
Best suited for:
- CAs, lawyers, and consulting teams
- Creative agencies or IT ventures
- Small retailers and family-run ventures
- Startups testing the waters before scaling
4. How to Form an LLP with Accounts2Arun
- Obtain DSC for designated partners
- Prepare & file the LLP Agreement
- Submit incorporation form (FiLLiP)
- Receive Certificate of Incorporation
- Apply for PAN & TAN, open a bank account
- Typically wrapped up in 10–15 business days.
5. What You’ll Need
- PAN and Aadhaar of partners
- Passport photos
- Office address proof (bill or rental agreement)
- Partner address proofs (utilities/bank statement)
5. LLP vs. Pvt Ltd at a Glance
- Aspect LLP Pvt. Ltd. Company
- Liability Limited to contribution Limited to shareholding
- Audit Requirements Only if turnover > ₹40L Yes, always required
- Tax on Dividends No Dividend Distribution Tax Yes, DDT applicable
- Capital Requirement No minimum Paid-up capital needed
- Ownership Flexible Fixed via shares
Final Word
If you want a professional, secure, and low-cost business setup, an LLP is a smart choice. It protects your personal assets, simplifies compliance, and gives you the freedom to grow at your own pace.
At Accounts2Arun, we make this journey easy. Let us help you register your LLP and launch with confidence.