Question 1

What is a Limited Liability Partnership (LLP) and who is it ideal for?

Accepted Answer

An LLP is a hybrid corporate entity combining the operational flexibility of a partnership with the limited liability protection of a company under the Limited Liability Partnership Act, 2008. It is ideal for professional service firms (consultants, lawyers, software agencies, design studios) and bootstrapped startups seeking minimal compliance overhead.

Question 2

What are the minimum requirements to register an LLP in India?

Accepted Answer

You need a minimum of 2 Partners (at least 2 Designated Partners, of which at least one must be a resident Indian citizen), a unique LLP name ending in 'LLP', an initial capital contribution (no minimum limit), and a registered office in India. There is no maximum limit on the number of partners.

Question 3

What is the key advantage of an LLP over a Private Limited Company?

Accepted Answer

An LLP has zero mandatory statutory audit requirements if annual turnover is under ₹40 Lakhs and capital contribution is under ₹25 Lakhs. In addition, profit distributions to partners are 100% tax-free under Section 10(2A), and there are no restrictions on internal partnership governance.

Question 4

How long does it take to register an LLP with TaxQue?

Accepted Answer

The entire process takes 6 to 8 working days. This includes Class 3 DSC procurement for designated partners, Name Reservation (RUN-LLP / FiLLiP Part A), MCA FiLLiP incorporation filing, Certificate of Incorporation (Form 16) issuance, and drafting & filing of the formal LLP Agreement (Form 3).

Question 5

What is Form 3 (LLP Agreement) and why must it be filed within 30 days?

Accepted Answer

Under Section 23 of the LLP Act, the mutual rights, duties, profit-sharing ratios, and capital contributions of partners must be recorded in an LLP Agreement and filed in Form 3 within 30 days of incorporation. Missing the 30-day deadline incurs a daily MCA penalty of ₹100 per day with no upper limit. TaxQue drafts and files Form 3 on time.

Question 6

Who will prepare our LLP documents at TaxQue?

Accepted Answer

Your LLP registration is managed by a dedicated Company Secretary and Corporate Legal Associate. We draft a customized LLP Agreement tailored to your specific profit-sharing ratios, dispute resolution clauses, and capital withdrawal rules.

Question 7

What documents are required from the partners?

Accepted Answer

Each partner must provide: Self-attested PAN Card, Identity Proof (Passport, Voter ID, or DL), latest Bank Statement or Utility Bill with current address (< 2 months old), and a passport photograph. Registered office address proof (electricity bill with landlord NOC) is also required.

Question 8

Can an existing Partnership Firm convert into an LLP?

Accepted Answer

Yes. Under Section 55 and the Second Schedule of the LLP Act, 2008, an existing traditional partnership firm can convert into an LLP by filing Form FiLLiP and Form 17 with ROC. All assets, liabilities, and client contracts automatically transfer to the LLP with zero capital gains tax (subject to conditions).

Question 9

Can a foreign national or foreign company be a partner in an Indian LLP?

Accepted Answer

Yes. Foreign nationals and overseas corporate bodies can be partners in an LLP under 100% Automatic FDI Route for sectors where 100% FDI is allowed without performance-linked conditions, provided there is at least one resident Indian Designated Partner. TaxQue handles foreign document apostille verification.

Question 10

When is a Statutory Audit mandatory for an LLP?

Accepted Answer

Under Rule 24 of LLP Rules, an LLP is required to get its accounts audited by a practicing Chartered Accountant ONLY if its annual turnover exceeds ₹40 Lakhs OR its capital contribution exceeds ₹25 Lakhs in any financial year.

Question 11

What are the recurring annual compliance filings for an LLP?

Accepted Answer

Every LLP must file two mandatory annual returns with the MCA every year: Form 11 (Annual Return of Partners & Capital by 30th May) and Form 8 (Statement of Account & Solvency by 30th October), in addition to filing its annual income tax return (ITR-5). TaxQue offers comprehensive annual LLP compliance packages.

Question 12

Can an LLP issue ESOPs or raise venture capital equity funding?

Accepted Answer

No. LLPs cannot issue equity shares or stock options (ESOPs) to employees, making it difficult to raise venture capital or angel funding. If your startup plans to raise VC funding, TaxQue recommends incorporating a Private Limited Company or converting your LLP into a Private Limited Company.

Question 13

Can an LLP be registered from a residential home address?

Accepted Answer

Yes. You can use your rented or owned home address as the registered office by providing the latest electricity bill, a rent agreement, and a signed NOC from the property owner.

Question 14

What happens if a partner wishes to resign or a new partner joins?

Accepted Answer

Any addition or resignation of partners requires executing an Supplementary LLP Agreement and filing Form 4 and Form 3 with the ROC within 30 days. TaxQue manages partner additions and resignations smoothly.

Question 15

What is the fee for LLP Registration with TaxQue?

Accepted Answer

We offer transparent fixed pricing covering Name Reservation, 2 Class 3 DSCs, FiLLiP filing, Certificate of Incorporation, PAN/TAN, DINs, and custom LLP Agreement drafting with Form 3 filing, with zero hidden charges.

Question 16

How do we receive our official LLP Incorporation Certificate?

Accepted Answer

Upon approval by the Registrar of Companies (ROC), an official Certificate of Incorporation in Form 16 bearing the unique LLP Identification Number (LLPIN) is digitally issued. TaxQue delivers the official certificate and PAN/TAN cards to you immediately.

Feature & Deliverable Matrix	Basic	Standard★ Most Popular	Premium
Name Availability Verification & Portal Reservation Assistance	✓	✓	✓
Drafting of MOA, AOA / Deed & Statutory Declarations	✓	✓	✓
Official Government Portal Filing & Document Submission	✓	✓	✓
Certificate of Incorporation / Registration Delivery	✓	✓	✓
Entity PAN & TAN Allocation Coordination	✓	✓	✓
Assigned Company Secretary (CS) & Corporate Legal Advisor	—	✓	✓
Class-3 Digital Signature Certificates (DSC) & Director DINs	—	✓	✓
Assisted Corporate Bank Current Account Opening Setup	—	✓	✓
Mandatory EPFO, ESIC & State Tax Registrations Included	—	✓	✓
1st Board Meeting Resolutions & INC-20A Commencement Filing	—	—	✓
Custom Shareholder & Co-Founder Agreement Drafting (SHA/SSA)	—	—	✓
Free Comprehensive Trademark Brand Search & Class Verification	—	—	✓
Dedicated Corporate Advisory Desk for Annual ROC Compliances	—	—	✓

Stakeholder / Element	Mandatory Documentation Checklist	Verification Guidelines
Designated Partners / Partners	PAN Card, Aadhaar Card, Passport Size Photograph, Passport / Voter ID / DL	Self-attested color copies
Partner Residential Proof	Bank Statement / Electricity Bill / Telephone Bill (not older than 2 months)	Name must match PAN exactly
Registered Business Office	Electricity Bill / Municipal Tax Receipt (< 2 months) + Rent Agreement + Landlord NOC (Form 1)	Recent utility bill with clear premises address
Customized LLP Agreement	Executed on state-specific non-judicial stamp paper and duly notarized	Signed by all partners + Form 3 filing

Compliance Event / Form	Statutory Due Date	Statutory Penalty for Default
Form 3 (LLP Agreement Filing)	Within 30 days of incorporation date	₹100 per day continuing penalty with no upper limit
Form 11 (Annual Return of LLP)	30th May (Within 60 days of FY closure)	₹100 per day continuing penalty under Section 35
Form 8 (Statement of Accounts & Solvency)	30th October (Within 30 days of half-year end)	₹100 per day continuing penalty under Section 34
DIR-3 KYC / Web-KYC (For DPIN Holders)	30th September every financial year	DPIN deactivation + ₹5,000 late fee per partner

Statutory Provision	Threshold Limit	Exemption / Requirement Details
Mandatory Statutory Audit	Turnover > ₹40 Lakhs OR Capital Contribution > ₹25 Lakhs	Audit by practicing CA mandatory under Section 30 of LLP Act
Minimum / Maximum Partners	Minimum 2 Designated Partners (No maximum limit)	At least 1 partner must be a resident of India
Taxation Rate	Flat 30% (+ Surcharge + 4% Cess)	Taxed as partnership firm; profit share is tax-free under Section 10(2A)

Service Parameter	TaxQue Corporate Desk	Generic Automated Websites	Local Non-Corporate Agent
LLP Agreement Customization	Tailored profit-sharing, IP ownership & exit clauses	Generic one-page default template	Outdated partnership templates
Form 3 Mandatory Filing	Included in incorporation package with state stamp duty guidance	Leaves Form 3 to client (causes ₹100/day penalty)	Charges extra for Form 3 filing
Audit Applicability Advisory	Clear guidance on ₹40L turnover audit exemptions	Zero statutory guidance	Often forces unnecessary costly audits

Accounting

LLP Registration

Timeline conditions

Get Free Expert Consultation

Right Plan For LLP Registration

Online LLP (Limited Liability Partnership) Registration

What is LLP Registration?

Mandatory Form 3 Filing Window (30 Days)

How to Get Started

Partner KYC & RUN-LLP Name Approval

Form FiLLiP Incorporation Filing on MCA

Certificate Delivery & Form 3 Agreement Filing

Documents Required for LLP Registration

Annual Compliance Deadlines & Penalty Matrix for LLPs

LLP Statutory Thresholds & Exemptions

Why Choose LLP Registration

Custom Legal LLP Agreement Drafting

Form 3 Filing Included at No Extra Fee

Designated Partner DPIN & Class 3 DSC Included

Eligibility Criteria for LLP Registration

1Eligible Partners

2Ideal Business Models

TaxQue LLP Service vs Generic Online Portals

Key Features of TaxQue LLP Services

7-Day Fast Track

Zero Balance Bank Account

Statutory Form 3 Coverage

MCA Compliance

Frequently Asked Questions

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Form	Purpose	Frequency	Due Date
Form 8	Statement of Account & Solvency	Annual	30th October
Form 11	Annual Return	Annual	30th May