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Interesting Facts about LLP Registration in India

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LLP registration

LLP Registration is getting a lot of traction in India because it leads to the birth of a business entity with the perks of a private limited company and a partnership firm. However, the interesting aspects of this business entity go a lot deeper than this. In this article, we reveal interesting facts about LLP Incorporation in India. 

A Limited Liability Partnership is an interesting business entity. It harbors the quality of both a firm and a company. However, because it is an “optional business entity”, many first-time entrepreneurs saw it fit to ignore it. But with time, more interesting features about this business entity start to come to light.

Here is a look at them.

Fact 1: It is a legal business entity incorporated at the MCA portal

A limited liability partnership is the only business entity without “company” at the end that goes through registration at the MCA portal. Because its features are close to a private limited company, the Ministry of Corporate Affairs performs the task to incorporate it.

Fact 2: An LLP cannot die

Once a Limited Liability Partnership is registered, it cannot die, unless someone closes it mandatorily. As it goes for a private limited company, a Limited Liability Partnership continues to retain its identity even after the death of one of the partners.

Fact 3: It is a separate legal entity

One major aspect that separates an LLP from a traditional firm is that it is a separate legal entity. After the incorporation, not only does it get a birth certificate (also known as certificate of incorporation), it also obtains a separate PAN card. As per the laws, an LLP therefore essentially becomes a juristic and non-natural person. That person can take part in legal proceedings and own property.

Related Service: Partnership Firm Registration

Fact 4: It is not a mutual Agency

For this business entity, every partner is necessarily an agent whose actions don’t have an impact on others. For instance, if a partner commits a crime, other partners aren’t held liable. None of the actions of the individual partners can impact the fate of an LLP as a whole.

Fact 5: Loss of this business entity doesn’t have an impact on the partner’s personal assets

Two factors of a Limited Liability Partnership known as Limited Liability and Separate legal entity gives rise to a third type of benefit – protection of the personal assets of the partners. Being limited, liable, and separate from the LLP, the personal assets of the partners don’t face any adverse effects of the loss of the partnership.

Fact 6: Incorporation requires Digital Signature Certificate

Because it is the Ministry of Corporate Affairs that’s handling the procedures of LLP incorporation, DSC or Digital Signature Certificate is mandatory. The Designated Partners of a Limited Liability Partnership have to come forth and get a DSC to apply for LLP incorporation in India.

Fact 7: Any form of business entity can transform into an LLP

As per the rules of the Ministry of Corporate Affairs, if you are not satisfied with your current business entity, you can transform it into a Limited Liability Partnership. Furthermore, the company conversion procedures are easy to ensure that entrepreneurs can choose a better business entity if they find the ones they have unsatisfactory.


An LLP is a reliable business entity. Due to its similarity to a private limited company, it has an online incorporation procedure. And its similarity to a partnership firm makes it have partners instead of directors.

So, upon looking at these facts, are you ready to start a sole proprietorship firm for your own?

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