Register an LLP in India (2026 Step by Step Guide for Foreigners and NRIs)
Table of Contents

What is LLP in India? 

LLP refers to a Limited Liability Partnership. It is a legal business structure in India where two or more people run a business together as partners, but their personal liability is limited. This means the partners are generally responsible only for the amount they have invested in the LLP, and their personal assets are protected from the liabilities of the business. 

It is governed under the LLP Act, 2008, under which it combines the features of both a partnership act and a company act. Earlier in India, there were mainly two laws governing business structures: the Companies Act for forming a company and the Indian Partnership Act for forming a partnership firm. 

Later, the Limited Liability Partnership Act was introduced, which created a new business structure called LLP that offers the flexibility of a partnership along with the benefit of limited liability similar to a company. 

LLP = Partnership Flexibility + Company-like Limited Liability 

Key Features and Benefits of Forming an LLP in India 

If you are a foreign national or an NRI looking to set up an LLP in India, you’re in the right place. Here, we simplify the features and structure so you can clearly understand how it can benefit your business. 

In many countries, like the USA, the common term used is LLC. An LLP in India is quite similar, as it also offers the benefit of limited liability, meaning partners are generally only responsible for the amount they invest. 

Many foreign businesses choose this structure in India because of its unique features and operational flexibility. Let’s understand the key features and benefits in detail:  

Key Features  Key Benefits of Setting up an LLP (especially for Small and medium-scale businesses) 
  • Limited Liability: The liability of each partner is limited to the amount they invest in the LLP. Their personal assets are usually protected from business debts. 

 
  • Cost-Effective Business Structure:
    The cost of setting up and maintaining an LLP is generally lower than that of a
    private limited company. This makes it a practical option for startups and small
    businesses.     
  • Separate Legal Entity: An LLP is treated as a separate legal entity from its partners. This means the business can own property, sign contracts, and take legal action in its own name. 
  • Lower Compliance Requirements: Compared to companies, LLPs have fewer legal compliances. There are fewer filings,fewer regulatory requirements, and no mandatory board meetings, which makes iteasier for small businesses to manage. 
  • Perpetual Succession: The LLP continues to exist even if a partner leaves, dies, or changes. The business does not stop because of changes in partners. 
  •  No Minimum Capital Requirement:There is no fixed minimum capital needed to start an LLP. Partners can start the business with any amount of contribution.  
  • Flexible Management:
    Partners can decide how the business will be managed through the LLP Agreement. 
  • No mandatory Audit for Small LLPs: Audit of accounts is only mandatory if the annual turnover exceeds ₹40 lakh or if the capital contribution exceeds ₹25 lakh.   
  • Easy to Add or Remove Partners: New partners can join easily, and existing partners can leave according to the LLP agreement. 
  • Low Taxation: LLPs are taxed as partnership firms, which means the business itself pays tax at a flat rate of 30%, and profits passed to partners are not taxed again, avoiding double taxation. 
  • Partners are Not Responsible for Others’ Mistakes:
    A partner is not responsible for the misconduct or negligence of another partner. 
  • DTAA: If you are a foreigner coming to India for investment purposes, you can also benefit from tax treaties between India and other countries, such as the Double Taxation Avoidance Agreement between India and the United States. This helps avoid paying tax on the same income in both countries. 

These are just a glimpse of the benefits and features. If you want to know more benefits you can get by incorporating an LLP in India, especially for your particular business, you can share your basic details with us by clicking here- https://masllp.com/contact-us/. We will share a draft based on your requirements. 

Eligibility to Form an LLP in India 

Before registering a Limited Liability Partnership (LLP) in India, it is important to understand the eligibility requirements set under the Limited Liability Partnership Act, 2008. 

The law specifies certain conditions regarding the number of partners, designated partners, and residency requirements. Let’s understand this: 

Eligibility Checklist  Details  Requirements 
Minimum number of partners  To form an LLP in India, at least two partners are required.  These partners can be: 

  • Individuals 
  • Companies 
  • Foreign nationals 
  • Foreign companies 
Maximum number of partners  No limit.  There is no maximum limit on the number of partners in an LLP, which makes it a flexible structure for growing businesses. 
Designated Partners  LLP must have at least two designated partners.  They are responsible for managing the LLP and ensuring legal compliance. 

Designated partners have additional responsibilities, such as: 

  • Filing annual returns 
  • Maintaining statutory records 
  • Ensuring regulatory compliance 

These designated partners must obtain a Designated Partner Identification Number (DPIN). 
Indian Designated Partner  Out of the two designated partners, at least one must be a resident of India.  A resident in India means a person who has stayed in India for at least 120 days during the financial year. 

This requirement ensures that there is always a person within India who is responsible for regulatory compliance. 

These are the basic eligibility requirements you need to fulfil to form an LLP in India. If you are a foreign national and are unsure how to meet these requirements—especially the requirement of having an Indian resident partner—you can contact us for assistance. 

At Mercurius,  we help businesses successfully and legally set up their operations in India. 

Key Checklist for Registering LLP in India 

Here is the ready-to-do list / a quick checklist for a foreign national or an NRI to ensure, prior to registering an LLP in India: 

  • Passport: Compulsory, must be notarized and apostilled. 
  • Address Proof: Bank statement, driving license, or utility bill (notarized/apostilled). 
  • Photograph: Recent passport-size photograph. 
  • Registered Office Proof: 
  • Utility bill (electricity, gas, or water) is not older than 2 months. 
  • Notarized Rental Agreement/Sale Deed. 
  • No Objection Certificate (NOC) from the property owner. 
  • Designated Partner Identification Number (DPIN): Mandatory for all designated partners. 
  • Digital Signature Certificate (DSC): Class 3 DSC required for all designated partners for electronic filing. 

Online Platform to Register your LLP in India 

You can easily register your LLP once you meet the eligibility criteria and have the necessary documents and checklist ready for incorporation. 

The registration process is completed through the online portal of the Ministry of Corporate Affairs (MCA). This portal acts as a single digital platform for registering different types of legal business structures in India, including LLPs and companies, provided that you follow all the guidelines and requirements  

Major forms under the MCA portal: 

  • RUN-LLP (Reserve Unique Name) 
  • FiLLiP (Form for incorporation of LLP) 

After the application is submitted and approved, the Registrar of Companies (ROC) issues the Certificate of Incorporation for the LLP. 

However, the process does not end with registration. After incorporation, the LLP must also comply with certain ongoing compliance requirements with the ROC, such as filing annual returns and maintaining proper records as required under the Limited Liability Partnership Act. 

To register your business as an LLP in India, submit your basic information –  https://masllp.com/contact-us/, and you will receive an email with the next steps and details of the registration process. 

How to register your LLP in India? (LLP Registration for Foreigners in India) 

If you are a foreign national or an NRI, you should follow the four major steps in the Incorporation process of LLP. 

Step 1: The first step is to obtain a “Digital signature certificate” for the proposed partners of the LLP. To obtain the same NRIs or Foreign nationals, you must submit a DSC application along with documents such as a Notarized/apostilled copy of the passport and address proof. 

Step 2: The applicant has to file the form RUN LLP for determining the availability and reservation of the name of the LLP business. 

Step 3: Once the name is approved, Form Fillip shall be submitted for the incorporation of the LLP. This form also provides for the Issuance of DPIN & Issuance of PAN & TAN. 

Step 4: On incorporation of the LLP, the Partners shall sign the LLP Agreement and file the same within 30 days in Form 3. Failure to file an LLP agreement on time attracts heavy penalties daily. 

Compliance Calendar for LLP in India 

Once you have successfully set up your LLP in India and received your Certificate of Incorporation—and most importantly, your DPIN—you might be wondering: what’s the next step? 

Here is a detailed compliance list you need to follow after setting up your LLP. 

Due Date  Form / Filing  Purpose 
May 30  Form 11  Annual Return of LLP – provides details of partners and capital contribution filed with the Registrar of Companies. 
July 15  FLA Return  Foreign Liabilities and Assets Return to be filed with the Reserve Bank of India if the LLP has received foreign investment or has overseas assets/liabilities. 
July 31  ITR-5  Income Tax Return of the LLP to be filed with the Income Tax Department (if audit is not applicable). 
September 30  DIR-3 KYC  KYC filing for designated partners holding DPIN/DIN to keep their identification active with the Ministry of Corporate Affairs. 
October 30  Form 8  Statement of Account and Solvency of the LLP, filed annually with the Registrar of Companies. 
Half-Yearly (April–Sept / Oct–March)
Due date- 30th  April and 31st  October 		 MSME Form 1  Filed if payments to MSME suppliers are outstanding beyond the prescribed period, with the Ministry of Corporate Affairs. 

These are the mandatory filings you need to adhere to. Delays or incorrect filings can lead to a lot of penalties. To know more, contact us! 

Other specific compliance 

  • Statutory Audit – Applicable if the LLP’s annual turnover exceeds ₹40 lakh or the capital contribution exceeds ₹25 lakh. 
  • GST Registration – Applicable if the LLP’s turnover exceeds ₹40 lakh (₹20 lakh for services in most states) or if it engages in interstate supply or certain specified businesses. 
  • MSME Registration – Optional but recommended for small and medium businesses to avail government benefits, subsidies, and easier access to credit. 
  • FEMA compliance: (FDI Reporting): File Form FDI-LLP (I) and (II) to report the receipt of foreign capital contribution to the RBI within 30 days of receiving the funds. 

Myth vs Facts 

Myth: LLP is only for law firms and consulting firms in India 

Fact: LLP is suitable for a wide range of businesses—startups, IT services, trading, e-commerce, manufacturing support, and even foreign-owned ventures. While professionals commonly use LLPs, it is not limited to them. 

Myth: LLP is complicated and difficult to manage 

Fact: LLPs are relatively simple to manage compared to private limited companies. They have fewer compliances, no mandatory board meetings, and less regulatory burden. 

Myth: Foreign nationals or NRIs cannot start an LLP in India 

Fact: Foreign nationals and NRIs can legally become partners in an LLP in India. The only condition is that at least one designated partner must be a resident of India. 

Myth: You need a high capital amount to start an LLP 

Fact: There is no minimum capital requirement for LLPs in India. You can start with any amount based on your business needs. 

Myth: LLP does not offer credibility like a company 

Fact: LLP is a recognized legal structure in India and offers good credibility, especially for small and medium businesses. It also provides limited liability protection, which builds trust with clients and vendors. 

Myth: LLP has no compliance requirements at all 

Fact: LLPs have fewer compliances, but they are not compliance-free. Annual filings, income tax returns, and other basic requirements must still be followed to avoid penalties. 

Myth: Partners are responsible for each other’s mistakes 

Fact: In an LLP, one partner is generally not responsible for the misconduct or negligence of another partner. This is one of the key advantages of this structure. 

Myth: LLP is not suitable for foreign investment 

Fact: LLPs can receive foreign investment under certain conditions and are a popular choice for foreign investors looking for a flexible and low-compliance business structure in India. 

Many professional service firms in India operate as Limited Liability Partnerships (LLPs) because this structure provides flexibility, limited liability, and easier management for partners. 

Some well-known examples of firms operating as LLPs in India include: 

  • Ernst & Young LLP – One of the largest consulting and professional services networks in the world, offering audit, tax, consulting, and advisory services. 
  • PricewaterhouseCoopers LLP – Commonly known as PwC, this firm provides audit, consulting, and tax advisory services to businesses worldwide. 
  • Grant Thornton LLP – A global professional services firm that provides advisory, tax, and audit services. 
  • BDO LLP – An international network of accounting and consulting firms operating in many countries. 

Human Resources & Recruitment 

  • ABC Consultants LLP – A leading recruitment firm known for providing specialized talent solutions across industries. 

Architecture & Design 

  • Edifice Consultants LLP – Known for high-end urban design and sustainable architecture projects. 
  • Cadence Architects LLP – Recognized for award-winning modern architectural designs. 

Media, Branding & Creative Agencies 

  • FifthEstate Communications LLP – Focuses on digital storytelling, PR, and brand building. 
  • Digitally Inspired Media LLP – Specializes in social media marketing and branding services. 

Digital Media & Content Platforms 

  • IncNut Digital LLP – Operates popular beauty and wellness platforms using a tech-driven approach. 
  • White Panda LLP – A content marketplace providing scalable content solutions for businesses. 

Design & UX Consulting 

  • Think Design Collaborative LLP – Specializes in user experience (UX), UI design, and design thinking solutions. 

Engineering & Infrastructure 

  • SNC-Lavalin Engineering LLP – Known for infrastructure development and specialized engineering solutions. 

Acts and Governing Bodies for LLP in India 

LLPs in India are regulated by various laws and authorities. Foreign nationals involved in the overall process must comply with the following: 

  • Limited Liability Partnership Act, 2008 
  • Companies Act, 2013 (for certain compliance references) 
  • Income Tax Act, 1961 
  • Ministry of Corporate Affairs 
  • Registrar of Companies 
  • FEMA (Foreign Exchange and Management Act) 

These authorities ensure that LLPs operate legally and maintain transparency. 

Conclusion 

LLP incorporation is the cheapest, easiest, and fastest entry strategy for NRI and foreign nationals into India. With the relaxation of FDI norms for investment in LLPs in India, NRIs and Foreign Nationals can choose to register as LLPs.So for you, encashing this opportunity is just a call away. 

How can Mercurius help? 

At Mercurius, we assist our clients in the registration/incorporation of an LLP in India, annual compliances of LLPs, setting up their business in India, and dealing with various corporate matters (Company incorporation, ROC Compliance, Company Winding up), bookkeeping, tax filings & assessments, payroll, auditing, trademark registration, business structuring, etc. If you have any questions or wish to know more about why LLP is better than a partnership, kindly contact us.