5 Things you didn’t know about LLP Registration

LLP Registration is the most sought-after process to incorporate a business entity in India. Irrespective of the reasons, it is fair to say that many establish this infrastructure without possessing substantial knowledge about it. Therefore, this article exposes the five things you didn’t know about registering an LLP in India.

Limited Liability Partnership, a singular business entity that possesses the qualities of other corporate infrastructures, has many secrets. Most of them are now in the open, while others are still hiding in plain sight. If you don’t know about them, there are two reasons:

  1. You expect too much from your LLP, or
  2. You are underestimating the potential of establishing a Limited Liability Partnership

Therefore, we are presenting this blog to open your eyes. Here, you will learn about the five things you did not know about LLP incorporation in India.

Hidden Fact 1: An LLP doesn’t have a maximum member limit

Regardless of the impact that LLP has on business, many are apprehensive. Their reason is simple, and it is misconceived. They believe there is a maximum limit to the number of partners within a Limited Liability Partnership.

They are wrong.

One of the most noteworthy plus points of an LLP is its flexibility about members. Regardless of what type of business you do, you can incorporate as many partners as you want into your business.

Hidden Fact 2: A Limited Liability Partnership can gain a lot of investment

One sentence reverberates in every article about LLP as a business entity – its inability to gain investment. There was a time when that was a fact. However, courtesy of this digitized age, things have changed. Investors are no longer frowning at the site of an LLP coming through their doors to ask for funding. They have realized the potential of unlimited growth that lies with this business entity.

Related Service: Sole Proprietorship Registration

Therefore, if you are one of those that think investing your time in establishing an LLP is a waste of time, think again. The demand for new business entities is high, and an LLP might be the key for you to start your business with your heads held high.

Hidden Fact 3:  There is no central authority in an LLP

Let us now talk about a secret that stops an LLP from realizing its full potential. It doesn’t have a central authority. Even though there are designated partners within an LLP, the absence of a focal figure makes the decision making procedure laborious. It can further undermine the functionality of an LLP because the lack of a centralized approach can yield reduced trust from the investors.

Over the past few years, new regulations have emerged to make an LLP more conducive for growth. However, none of them has borne fruit because the foundation rules of a Limited Liability partnership remain the same.

Hidden Fact 4: The compliance requirements for an LLP are more stringent

Even though only a few compliance requirements that an LLP must fulfil, all of them are stringent. The Ministry of Corporate Affairs isn’t forgiving towards an LLP that fails to file the returns on time.

Hidden Fact 5: You need a Digital Signature Certificate to register an LLP

The Limited Liability Partnership Registration process is online. It further hinges on your directors having their Digital Signature Certificates. Thus, before applying for incorporating your titular business entity, you must consult with a business expert and obtain a DSC.

Related Article: Top 3 Challenges of Partnership Firm Registration in India


While it is a wise decision to incorporate an LLP in India, you must know all the facts first. With this blog, we have attempted to illuminate the facts that often get sidelined about Limited Liability Partnerships in India. We hope that you heed them when you decide to incorporate your business.

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