LLP Registration in Andaman and Nicobar Islands

A Limited Liability Partnership (LLP) is a business structure that protects personal assets while providing partners full operational flexibility. It functions as a separate legal entity under the LLP Act, 2008, able to own property, sign contracts, and continue operations even if partners change.

The Andaman and Nicobar Islands are emerging as a promising business destination, with key growth in tourism, fisheries, and marine industries. The long coastline of 1,962 km offers huge potential for marine investment and cruise tourism. This expanding economy encourages organized business structures like LLP company registration, making it easier for entrepreneurs to formalize their ventures.

The Andaman & Nicobar Islands are also strategically significant under India’s Act‑East Policy, serving as a hub for economic cooperation with East Asia, thanks to their location and long coastline.

In this environment, an LLP offers clear advantages:

• Limited Liability: Partners are protected from business debts.
• Flexible Structure: Roles and profit-sharing can be defined in the LLP Agreement.
• No Minimum Capital: Start with any amount, assets, or skills.
• Continuity: Operations continue even if partners change.
• Simplified Compliance: Fewer formalities than a private limited company.
• Credibility: A registered LLP builds trust with banks, clients, and authorities.
• Scalability: You can add new partners as the business grows.
• Global Acceptance: LLPs are recognized internationally, facilitating exports and collaborations.

With growing economic opportunities, supportive policies, and sectoral potential, LLPs in the Andaman and Nicobar Islands provide a practical and secure choice for long-term business growth.

The Andaman and Nicobar Islands offer unique advantages for entrepreneurs, including strategic location, improved connectivity, and government-backed incentives. The following factors explain why LLPs are an ideal business structure in the islands:

1. Thriving Business Environment in Andaman and Nicobar Islands

The Union Territory is actively simplifying business regulations to support startups, tourism ventures, and trade. In BRAP 2024, the Andaman and Nicobar government is rolling out 434 reform measures aimed at enhancing ease of doing business and promoting entrepreneurship.

As per the Press Information Bureau, there are 59 DPIIT-recognized startups in the Andaman and Nicobar Islands as of 2024. This growth highlights the rising interest in sectors like tourism, fisheries, e-commerce, logistics, and hospitality.

Domestic tourist arrivals in the islands surged to 710,000 in 2024, up from approximately 323,000 in 2023. This surge in tourism has increased demand for professional service businesses, such as tour operators, eco-resorts, and transport services. These ventures can benefit from the flexibility and credibility of LLP registration.

LLPs remain a preferred choice due to their low compliance requirements, flexible management, and credibility among clients and investors.

2. Access to Modern Infrastructure & Connectivity

The Andaman and Nicobar Islands are investing in infrastructure to boost economic activity:

• Key projects include the Great Nicobar Development Project, which will build a major international container transhipment port at Galathea Bay and a greenfield airport. 
• Under the Andaman & Nicobar Island Connectivity Programme, the 26 km Andaman Trunk Road (NH‑4) has been upgraded for seamless traffic flow, improving inter-island connectivity.
• The Lakshadweep & Andaman & Nicobar Islands Industrial Development Scheme (LANIDS) 2018 offers various incentives to businesses. These include capital support, interest, and GST reimbursement for priority sectors like manufacturing and services.

These infrastructure upgrades and business‐friendly schemes make the islands an increasingly attractive location for LLPs in trading, tourism, services, and export operations.

3. Strong Government Support for Startups & MSMEs

The administration actively supports entrepreneurship through policies and funding initiatives:

• The Andaman and Nicobar Startup Policy promotes incubation centres, skill development programs, and business mentoring to nurture new ventures.
• Financial incentives include subsidies for setting up units, assistance for patent filing, and support for MSME growth. A single-window clearance system simplifies registrations, approvals, and post-incorporation compliance, making it easier for LLPs to operate.
• As of July 31, 2024, there were 20,748 MSMEs registered under the Udyam portal in the Andaman and Nicobar Islands, including 17,212 micro enterprises,155 small enterprises, and 3 medium enterprises.
• In FY25 (up to February 2025), the region exported key items such as marine products, which accounted for 85% of the state’s total exports.

With strong policy backing, financial incentives, and a favorable business environment, LLPs in the Andaman and Nicobar Islands can operate with lower risk and scale efficiently.

Registering an LLP in the Andaman and Nicobar Islands is a straightforward, MCA-governed process under the LLP Act, 2008. To ensure smooth incorporation, applicants must meet the following eligibility requirements:

1. Minimum Partners: An LLP must have at least two partners to start. There is no upper limit on the number of partners.
2. Designated Partner Requirements: At least two partners must be Designated Partners (DPs), responsible for compliance and filings. Out of these, one DP must be a resident of India, meaning they must have stayed in India for a minimum of 120 days in the previous financial year.
3. Eligible Partners: Both individuals and corporate entities (companies, LLPs, or foreign bodies corporate) can become partners in an Andaman and Nicobar Islands-based LLP.
4. DSC: Every Designated Partner must obtain a Digital Signature Certificate (DSC) to sign incorporation documents and forms on the MCA portal digitally.
5. DIN/DPIN Requirement: All DPs must hold a valid Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) issued by the MCA.
6. Unique Name Requirement: Your LLP name must be distinct and not identical or too similar to an existing company, LLP, or registered trademark. Name reservation can be done easily through the RUN-LLP service on the MCA website.
7. LLP Agreement: Partners must prepare and file an LLP Agreement within 30 days of incorporation. This document outlines partnership terms, duties, rights, and profit-sharing arrangements.
8. Foreign Partner Eligibility (FEMA Compliance): Foreign nationals and foreign entities can also become partners in an LLP registered in the Andaman and Nicobar Islands. They must, however, comply with FEMA regulations and ensure that the investment falls under a sector where 100% FDI is allowed under the automatic route.
9. Capital Requirement: There is no minimum capital requirement to start an LLP in the Andaman and Nicobar Islands. Contributions can be made through:

• • Cash
  • Tangible or intangible assets
  • Intellectual property
  • Services or other benefits agreed upon mutually by partners

LLP registration in Andaman and Nicobar Islands is fully online and managed by the Ministry of Corporate Affairs (MCA). Entrepreneurs can complete the process by submitting the required forms and documents digitally through the MCA portal (mca.gov.in).

Follow these steps to register your LLP in Andaman and Nicobar Islands:

Step 1: Get DSC for All Partners

• All designated partners must obtain a DSC to sign e-forms on the MCA portal.
• A Class 3 DSC is required for all filings.
• DSCs can be obtained from licensed certifying authorities such as e-Mudhra, Sify, or NSDL.

Step 2: Apply for DIN/DPIN

• Every designated partner must have a DPIN.
• You can apply for DPIN for up to two partners directly in the FiLLiP form during incorporation.
• For additional partners, file Form DIR-3 separately to obtain DIN.

Step 3: Get Name Approval for Your LLP (RUN-LLP)

• File the RUN-LLP form with the Registrar of Companies (ROC), Chennai.
• Propose up to two names at a time.
• Ensure the name is unique and not similar to any existing company, LLP, or trademark.
• You can resubmit the form once if the ROC rejects your name proposal.

Tip: Use RegisterKaro’s free company name availability tool to check for a unique and compliant LLP name before submission.

Step 4: File Consent of Partners in Form 9

• Each designated partner must give their consent in Form 9, declaring they are not disqualified under the LLP Act.
• Attach Form 9 while filing the FiLLiP form for incorporation.

Step 5: File for Incorporation of the LLP (FiLLiP Form)

• File the FiLLiP (Form for Incorporation of Limited Liability Partnership) once you have name approval and partner consent.
• This integrated form allows incorporation and DPIN allotment (for up to two partners).
• Attach supporting documents such as:
  • Proof of registered office in the Andaman and Nicobar Islands
  • Identity proof of partners
  • Address proof of partners

Step 6: Draft and File the LLP Agreement

• Draft an LLP Agreement defining partner duties, rights, and profit-sharing clearly.
• File the agreement with the ROC in Form 3 within 30 days of incorporation.
• Execute the agreement on stamp paper as per the Andaman and Nicobar Islands regulations.

Step 7: Receive the COI

• Once the ROC verifies and approves your FiLLiP form, you’ll receive a Certificate of Incorporation (COI).
• This certificate officially confirms your LLP’s legal existence in the Andaman and Nicobar Islands.

Step 8: Apply for PAN and TAN of LLP

• Apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) via NSDL or UTIITSL.
• Completing this step ensures your LLP is ready for taxation and compliance.

Note: If you do not file the LLP Agreement within the allowed time, your LLP will automatically follow the standard rules under Schedule I of the LLP Act, 2008.

To complete the LLP registration process in Andaman and Nicobar Islands, you need to submit the following documents:

From the Partners

• PAN Card and Aadhaar Card of each partner.
• Identity Proof: Voter ID, Passport, or Driving License.
• Address Proof: Bank statement or electricity bill (not older than two months).
• Photograph: Recent passport-size photo with a clear white background.

For Foreign Nationals/NRIs (if applicable)

• Notarized/apostilled passport.
• Notarized/apostilled residence proof, such as a utility bill or bank statement from outside India.

Proof of Registered Office Address in Andaman and Nicobar Islands

• Owned Property: Copy of the sale deed or property deed.
• Rented Property: Copy of the rent agreement or lease deed.
• Utility Bill: Electricity bill, gas bill, or telephone bill (not older than two months).
• NOC from Owner: If you register your LLP office in rented premises, the property owner must provide a No Objection Certificate (NOC).

The cost of LLP registration in Andaman and Nicobar Islands depends on stamp duty, government charges, and professional fees. Below is a clear breakdown of the fees and penalties you should know before registering your LLP:

Note: New DPIN is free if applied through FiLLiP. Rs. 500 applies only for DIN allotment via DIR-3 (rarely used for LLPs).

Penalties for LLPs in Andaman and Nicobar Islands

LLPs in Andaman and Nicobar Islands must comply with the LLP Act, 2008, and MCA regulations.

By evaluating the cost of LLP registration in advance, you can streamline the process and focus on building your LLP in Andaman and Nicobar Islands without financial surprises.

Stay compliant and avoid penalties. File your documents on time with RegisterKaro today!

After registering your LLP in Andaman and Nicobar Islands, you must actively meet annual and event-based compliances to stay compliant and avoid penalties. Here is a list of LLP annual compliances:

1. File Annual Returns (Form 11): You must file Form 11 with the ROC every year within 60 days of the financial year-end (by May 30). This form shows details of all partners and their contributions.
2. Submit Statement of Account and Solvency (Form 8): File Form 8 within 30 days from the end of six months after the close of the financial year (by October 30). This form declares your LLP’s financial position and solvency.
3. File Income Tax Return (Form ITR 5): File the LLP’s income tax return every year in Form ITR 5. If your turnover or capital contribution crosses Rs. 40 lakh and Rs. 25 lakh, respectively, you must also get a tax audit.
4. File LLP Agreement (Form 3): Submit the LLP Agreement to the ROC in Form 3 within 30 days of incorporation. Delays attract penalties, so timely filing is essential.
5. Comply with Event-Based Filings: File the correct forms when events occur, such as:

• • File Form 4 for a change in partners/designated partners.
  • File Form 15 for a change in registered office.
  • File Form 3 for an amendment to the LLP Agreement.
  • File Form 5 for the change of LLP name.

6. Follow Local Compliances in Andaman and Nicobar Islands:

• • Register for Professional Tax and file returns with local authorities if applicable.
  • Obtain GST registration if your turnover exceeds Rs. 40 lakh (Rs. 20 lakh for services) or if you conduct interstate supply.
  • Comply with the Andaman and Nicobar Shops and Establishments regulations, which are mandatory for all business premises.