How to set up a Limited Liability Partnership (LLP)?

by Yash Srivastava
Posted on Tue, 01 December, 2020, 11:14 AM IST

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[Image by unkown via UPSE India]

If you want to start your business with LLP, then you must get it registered under the Limited liability Partnership Act, 2008. Here’s a step by step guide to do so:

Step 1: Application for DIN or DPIN

All designated partners of the proposed LLP shall obtain “Designated Partner Identification Number (DPIN)”. You need to file e-form DIR-3 in order to obtain DIN or DPIN. In case you already have a DIN (Director Identification Number), the same can be used as a DPIN. DPIN/DIN may be applied from the ministry portal on this link.

Step 2: Acquire/Register Digital Signature Certificate

The Information Technology Act, 2000 provides for use of digital signatures on the documents submitted in electronic form in order to ensure the security and authenticity of the documents filed electronically. 

Partner/Designated partner of LLP/proposed LLP, whose signatures are to be affixed on the e-forms has to obtain class 2 or class 3 Digital Signature Certificate (DSC) from any authorized certifying agency, details of which are available on the home page of the LLP portal under the tab “Certifying Authorities”. 

Step 3: User Registration 

Register yourself on the website of Ministry of Corporate Affairs, developed for LLP services, i.e. This website may also be accessed through the website of the ministry, i.e.

Step 4: Reservation of Name

LLP-RUN (Limited Liability Partnership-Reserve Unique Name) is filed for the reservation of name of proposed LLP which shall be processed by the Central Registration Centre under Non-STP. But before quoting the name in the form, it is recommended to use the free name search facility on MCA portal. The system will provide a list of closely resembling names of existing companies/LLPs based on the search criteria filled up. This will help you in choosing names not similar to already existing names.

Step 5: Incorporation of LLP

Once the name has been reserved, the applicant has to file an LLP Integrated Incorporation form through the MCA portal. This form requires details such as particulars of the proposed or approved name of the LLP, business activity to be carried out by the LLP, proof of address of registered office of the LLP, subscriber's sheet including consent, details of the designated partners along with the DPIN, Total monetary value of the contribution by partners in the LLP etc. 

On submission of complete documents, the Registrar after satisfying himself about compliance with relevant provisions of the LLP Act will register the LLP, maximum within 14 days of the filing of Form-2 and will issue a certificate of incorporation in Form-16.

Step 6: Filing of LLP agreement 

LLP agreement governs the mutual rights and duties amongst the partners and also between the LLP and its partners. After incorporation of LLP, an initial LLP agreement is to be filed within 30 days of incorporation of LLP. The user has to file the information in Form 3 (Information with regard to the Limited Liability Partnership Agreement and changes, if any, made therein).

While drafting a Limited Liability Partnership Agreement, the following clauses out of others shall especially be kept in cognizance:

1. Object of your business

2. Designated partners and profit-sharing ratios

3. Operation of bank accounts

4. Rights and duties of Partners

5. Dispute Resolution clause

6. Indemnity, addition and cessation of Partners

7. Procedure of amendments in the Agreements


To know more about the benefits of a LLP, read "Why a Startup should choose a Limited Liability Partnership (LLP)?"

Don't want to go through the registration hassle? Let us help you out for free. Register here and drop your request now! You may feel free to contact us for any query on the subject. We at Caim Consultancy are always glad to serve you with meaningful and relevant information to help your business grow!