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Published on: Jul 17, 2026

Limited Liability Partnership (LLP) - All You Need to Know

In this article, we look at some of the advantages and features of a

LLP registration

, which is a new type of business structure in India, introduced to provide limited liability to the owners while at the same time being simple to start and manage.

Limited Liability

The Partners are liable to the extent of their contributions to the firm. In other words, they are not liable to the outside creditors personally. In the case of a partnership, the partners are personally liable to the creditors. Due to this provision, many entrepreneurs hesitate to become a partner of a partnership firm.

Separate Entity

LLP is a separate legal entity and it can own properties in its own name and it alone will be liable to its liabilities.

Capacity to Sue and be Sued

An LLP is a body corporate and it can sue and be sued in its own name.

Simplicity

Compared to the formation and running of a

Private Limited Company

, the formation and running of an LLP are simple. There is no specific requirement regarding members meetings, resolutions, annual meetings, etc.,

Perpetual Existence

An LLP is a juristic person and its existence does not depend on the partners. The partners of an LLP may keep changing from time to time but it will not affect the LLP's continuity.

Minimum Number of Partners

A minimum number of partners required to form an LLP is two. However, if the number of partners falls below two for six months, then the partner continuing in the LLP will become personally liable.

Maximum Number of Partners

There is no limit regarding the maximum number of partners. On the other hand, Private Limited Company has a maximum limit on the number of members at two hundred.

Formation of Limited Liability Partnership (LLP)

Incorporation Process of a Limited Liability Partnership 747x1024

Incorporation-Process-of-a-Limited-Liability-Partnership To incorporate an LLP, a minimum of 2 persons are required. As detailed above, there is no limit on the maximum number of partners in an LLP. The following persons can be partners in an LLP.

  • Individuals
  • Limited Liability Partnerships
  • Companies
  • Foreign Limited Liability Partnerships
  • Foreign Companies
Back to Learn

Frequently Asked Questions

Common questions about Limited Liability Partnership Registration in India.

An LLP offers several advantages including limited liability for partners, separate legal entity status, the ability to sue and be sued in its own name, simplicity in formation and management compared to a private limited company, and perpetual existence independent of changes in partners.
A minimum of two partners are required to form an LLP. However, if the number of partners falls below two for six months, the remaining partner will become personally liable.
No, there is no maximum limit on the number of partners in an LLP, unlike a private limited company which has a maximum of 200 members.
Individuals, existing LLPs, companies (both Indian and foreign), and foreign LLPs can all be partners in an LLP.
The liability of partners in an LLP is limited to the extent of their contributions to the firm. They are not personally liable to outside creditors, unlike in a traditional partnership firm.
Yes, an LLP is a separate legal entity that can own properties and be liable for its own liabilities, distinct from its partners.
No, if the number of partners in an LLP falls below two for more than six months, the remaining partner will become personally liable, and the LLP may cease to exist.
The formation and management of an LLP is relatively simpler compared to a private limited company, with fewer mandatory requirements such as members meetings, resolutions, and annual meetings.
While not legally mandated, it is advisable for partners in an LLP to have a written agreement outlining their roles, responsibilities, profit-sharing ratios, and other operational aspects.
Yes, an LLP, being a separate legal entity, can raise funds from external sources such as banks, investors, or through other financing mechanisms, similar to other business structures.