LLP in India – Limitations/Disadvantages

Understanding the Limited Liability Partnership (LLP) limitations / disadvantages would help the entrepreneur get the additional perspective of this structure.  The entrepreneur needs to understand these things quite in details as it may create various stumbling blocks, which  may delay  breakthrough related to Start-up growth. Here in this article we would explore some of the limitations/disadvantages, that would help us avoid future hassles.

Limitation in the formation of LLP
As the basic structure or model of the LLP is similar to that of any partnership firm  but it requires minimum two partners to form it.

Click here to read the full article published in MarketExpress  –  a Financial & Business News, Analysis, Insights, Opinions & Research Portal.

If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.

Legal Disclaimer:
The information / articles & any replies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do not constitute legal advice or legal opinions. The information / articles & any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, I can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information/article contained without first seeking the advice of a Practicing Professional.

20 thoughts on “LLP in India – Limitations/Disadvantages

  1. Opened in llp in July 2016 & after two months decided to not start the business…bank account was also not opened,now want to close the company,.kindly suggest..thanks.

    • As per my opinion, you can apply for closing if you would like to close it. Please attach latest acknowledgment of Income tax return even though there is no operation or income, File NIL income tax return. Acknowledgment of IT return is compulsory for closing of LLP.

  2. Mam,

    We had converted a Pvt. Ltd. Company in to LLP in may 2016. then the documents like balance sheet, annual return is filled in which status – company or llp for the FY 2015-16. And also in which status i will be file income tax return as a company or llp for previous year.

  3. R/Sir,

    what is basic difference between general partnership firm & LLP

  4. Dear Madam,
    I want to form first LLP for my Client Please help me out.
    1) is Prior consent is the first step can It be taken without DIN
    2) Can Name reservation be done In form 1 without prior consent that is to be obtained in form 9
    3) after admission and retirement of designated partner in LLP is information is required to be submitted in form 4 and is LLP agreement is to be again drafted and is to be uploaded in Form 3
    Please help its urgent

  5. Hello Madam,

    We have incorporated LLP in Nov 2013 and our CS was travelling and was not available during the 30days of filing Form 3 and when he returned he mentioned it was not mandatory to file Form 3, is it true?

    We did not file IT till date, when is the date for filing IT and submitting the P&L and Balance Sheet to ROC?

    • As per LLP Rules, 21 (1) For the purposes of sub-section (2) of section 23, every limited liability partnership shall file information with regard to the
      limited liability partnership agreement in Form 3 with the Registrar within thirty days of the date of incorporation alongwith the fee.
      Therefore it is mandatory to file Form 3 along with LLP agreement.

  6. R/MAM,

  7. Hi ,me and my partner decided to start a LLP company , We are done with basic process of getting the LLP incorporated with ROC , Certificate of incorporation is in place ,
    Ack for new Pan Card is in place ,
    We have DIN nos in place.

    LLP Agreement and Capital is not put in

    Due to initial differences only I have decided to opt out . Please suggest me what would be the consequences of the same .

    Can the LLP, be left at where it is and we can move on. Please suggest its really important

  8. I wish to understand a commercial space is required for a LLP, I work abroad and I am planning to host a website selling apparels.
    Kindly advise about the legal requirements and Tax matters. Also Is it mandatory to own a commercial space for the same, as I read in some article that Business Premises Proof is required to get TIN#.Is it also possible to do business in other states apart from the state where the LLP was registered?, I would kindly request you to explain this aspect of LLP formation.

  9. dear ma’am

    can you pl provide a draft copy of detailed application required in filing form 24.

    thanks in advance

  10. dear ma’am

    can you pl provide a draft copy of detailed application required in filing form 24.

    thanks in advance


    • To file application for striking off LLP you will have to file form 24 to concerned Registrar of Companies. Since LLP Rules or LLP Act have not provided any formats as per attachments to form 24,I would advise you to prepare formats to be used for striking off company under Fast Track Exit scheme.

Leave a Reply

Your email address will not be published. Required fields are marked *