LLP Registration in Bihar

A Limited Liability Partnership (LLP) is a business structure that combines the security of a company with the flexibility of a partnership. It is a separate legal entity allowed to own property, sign contracts, and continue to operate even if partners change.

Bihar has seen growing adoption of LLPs, particularly in Patna, Gaya, and other emerging business hubs. Startups, consultancies, and service-based businesses prefer LLPs in Bihar for their low-cost setup, simplified compliance, and operational flexibility. Registering an LLP in Bihar helps entrepreneurs start quickly while maintaining credibility and legal protection.

Key features of LLP company registration are:

• Limited Liability: Partners risk only the money they contribute. Personal assets remain protected even if the LLP faces debts or losses.
• Flexible Structure: Partners decide profit sharing and management freely through the LLP agreement.
• No Capital Barrier: Starting an LLP does not require high capital, making it ideal for startups and small businesses in Bihar.
• Continuous Existence: An LLP continues to operate even if a partner leaves or passes away.
• Tax Advantages: LLP profits are taxed at the LLP level at a flat rate of 30% plus applicable cess and surcharge. Partners are not taxed again on profit shares under Section 10(2A) of the Income Tax Act.
• Cost-Effective Compliance: LLPs have fewer regulatory requirements than private limited companies, making compliance simpler and affordable.
• Scalable Partnership: LLPs require at least two partners but have no upper limit, allowing easy expansion.
• Professional Appeal: LLPs enhance credibility and trust; consultancies, law firms, and agencies in Bihar prefer this structure.
• Global Acceptance: LLPs are recognized internationally, easing expansion and export opportunities.
• Limited Government Involvement: Daily operations are managed by partners via the LLP agreement, offering more autonomy than private limited companies.

Bihar is emerging as a promising destination for startups and small businesses. It offers a mix of industrial growth, skilled workforce, and government support. Some reasons that make LLPs an excellent choice for entrepreneurs in Bihar are:

1. Flourishing Business Environment in Bihar

Bihar, especially Patna, Gaya, and Muzaffarpur, is witnessing steady growth in startups, SMEs, and service-oriented ventures. Key sectors include IT, education, manufacturing, and logistics. Its strategic location in Eastern India and improved connectivity make it attractive for both domestic and regional trade.

2. Access to Industrial Zones and Local Resources

Bihar provides infrastructure and resources to support business growth:

• Patna & Bihta Industrial Areas: Offer subsidized land, connectivity, and facilities for SMEs and startups.
• Bihar IT Parks: Support tech-based ventures with incubation, networking, and mentorship opportunities.
• Local Skilled Workforce: Universities and technical institutes supply trained professionals for diverse industries.

3. State Government Initiatives Supporting Startups

The Bihar government encourages entrepreneurship through programs such as:

• Bihar Startup Policy: Provides seed funding, mentorship, and business support. Early-stage startups can also benefit from the Startup India Seed Fund Scheme.
• Financial Assistance & Subsidies: For infrastructure, skill development, and technology adoption.
• Incubation & Innovation Centers: Government-supported incubators and co-working spaces help startups scale efficiently.
• IPR Support: Assistance for patents, trademarks, and intellectual property protection to encourage innovation.

These resources, policies, and a growing business ecosystem make Bihar a fertile state for LLPs to start, grow, and expand successfully.

Registering an LLP in Bihar is governed by the Ministry of Corporate Affairs (MCA) under the LLP Act, 2008. To ensure smooth registration, applicants must meet the following eligibility criteria:

• Minimum Partners: An LLP must have at least two partners. There is no maximum limit on the number of partners.
• Designated Partner Requirements: At least two partners must be Designated Partners (DPs) responsible for regulatory compliance. One DP must be a resident of India, i.e., a person who has stayed in India for at least 120 days during the previous financial year.
• Eligible Partners: Both individuals and corporate entities (companies or other LLPs) can become partners in an LLP.
• DSC: Each Designated Partner must get a Digital Signature Certificate (DSC) to sign registration documents and MCA e-forms digitally.
• DIN/DPIN: All Designated Partners must hold a valid Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) issued by the MCA.
• Unique Name Requirement: The LLP’s name must be unique and not identical or similar to an existing company or trademark. The name can be reserved using the RUN-LLP service on the MCA portal (mca.gov.in).RegisterKaro’s free company name availability tool can also help you check and finalize the LLP name.
• LLP Agreement: Partners must prepare and file an LLP Agreement within 30 days of incorporation. This document outlines roles, responsibilities, and profit-sharing terms among partners.
• Compliance for Foreign Partners (FEMA): Foreign nationals and entities can be partners, but they must comply with FEMA regulations and FDI norms. Investments are allowed under the automatic route only in sectors permitting 100% FDI.

Note: There is no minimum capital requirement for starting an LLP in Bihar. Contributions can include cash, assets, intellectual property, or other agreed-upon benefits.

The Ministry of Corporate Affairs (MCA) manages LLP registration in Bihar, which is completely online. You can complete the entire process by submitting all forms and documents online on the MCA portal (mca.gov.in).

Follow the steps below to register your LLP in Bihar:

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 generally required.
• You can get a DSC from licensed certifying authorities like e-Mudhra, Sify, or NSDL.

Step 2: Apply for DIN/DPIN

Every designated partner must have a DPIN.

• You can apply for a 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), Patna.

• 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 once if the ROC rejects your name proposal.

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:
  • Registered office proof
  • Identity proof of partners
  • Address proof of partners

Step 6: Draft and File the LLP Agreement

Draft an LLP Agreement that clearly defines each partner’s duties, rights, and profit-sharing ratio.

• File the agreement with the ROC in Form 3 within 30 days of incorporation.
• Execute the agreement on stamp paper as per the Bihar Stamp Act.

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 that your LLP legally exists in Bihar.

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).

• Use NSDL or UTIITSL to obtain these.
• Complete this step to ensure tax and compliance readiness.

Note: If you don’t file the LLP Agreement on time, the default rules under Schedule I apply to your LLP automatically

To complete the LLP registration process in Bihar, you need to submit the following documents to the MCA:

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 Bihar

• 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 give a No Objection Certificate (NOC).

The cost of LLP registration in Bihar 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. Moreover, Rs. 500 applies only for DIN allotment via DIR-3 (used rarely for LLP).

Penalties for LLPs in Bihar

LLPs in Bihar must comply with the LLP Act, 2008, and MCA regulations. Failure to meet filing or compliance requirements can attract penalties and extra fees, making timely compliance essential.

Being aware of all charges provides clarity on the total cost of LLP registration in Bihar and helps plan your budget effectively.

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

• 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.
• 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.
• File Income Tax Return (Form ITR 5): File the LLP’s income tax return every year in Form ITR 5. If your turnover crosses Rs. 40 lakh or the capital contribution exceeds Rs. 25 lakh, you must also get a tax audit.
• File LLP Agreement (Form 3): Submit the LLP Agreement to the ROC in Form 3 within 30 days of incorporation. If you delay, you pay heavy penalties.
• 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.
• Follow Local Compliances in Bihar:
  • Register for Professional Tax and file returns with the state authorities.
  • Obtain GST registration if your turnover exceeds Rs. 40 lakh for goods and Rs. 20 lakh for services, or if you do interstate supply.
  • Register your office under the Bihar Shops and Establishments Act, which is mandatory for all business premises.