LLP Registration in Daman and Diu

A Limited Liability Partnership (LLP) is a registered business structure that protects the personal assets of its partners. It allows partners full operational flexibility while functioning as a separate legal entity under the LLP Act, 2008. It can own assets, sign contracts, open bank accounts, and continue business even if partners change. In this business structure, partners are responsible only up to their capital contributions.

This structure is well-suited for regions with strong commercial activity and expanding enterprise opportunities. This makes Daman and Diu a practical location for LLP formation.

Daman and Diu have emerged as a strong industrial and commercial region with notable growth across multiple sectors. Key industries operating in the Union Territory include:

• Manufacturing
• Packaging and printing
• Plastics and polymer units
• Chemical production and processing
• Beverage and bottling plants
• Electrical appliance assembly
• Tourism and hospitality services
• Transport, warehousing, and logistics support

In January 2020, Daman and Diu were merged with Dadra and Nagar Haveli to form a single Union Territory. The consolidation created a stronger administrative and industrial region, improving policy coordination and business support.

The region attracted industrial investment of more than ₹1,780 crore in FY 2023–24, as per the India Brand Equity Foundation. The region supports a large base of industrial and commercial units supplying products to domestic and export markets. Major activity clusters include Dabhel, Bhimpore, Kadaiya, Somnath, Ringanwada, Khariwad, and Dunetha, where many manufacturing and distribution units operate at scale.

The Union Territory also benefits from proximity to Mumbai and Gujarat, giving manufacturers and distributors access to India’s largest trade and logistics networks. This geographic advantage encourages entrepreneurs to formalize operations through LLP registration.

In this business environment, LLP company registration provides clear advantages:

• Limited Liability: Personal assets stay protected when business liabilities arise.
• Flexible Structure: Partners can define internal rules and profit-sharing in the LLP Agreement.
• No Minimum Capital: Start operations with any working capital model, making it ideal for micro-businesses and first-time founders.
• Business Continuity: The entity continues even if partners exit or new partners join.
• Reduced Compliance Requirements: Compliance work remains simpler compared to private limited companies.
• Professional Credibility: Banks, suppliers, and clients trust registered LLPs.
• Partner Expansion Support: An LLP can add partners easily when operations expand.
• Recognition in International Markets: This structure is accepted for exports, procurement contracts, and partnerships.

LLP registration in Daman and Diu offers a practical structure for long-term business growth across manufacturing, logistics, tourism, and hospitality.

Daman and Diu offer strong economic potential, driven by industrial output, manufacturing capacity, and tourism activity. Business infrastructure and policy support have improved steadily in recent years, creating a favourable environment for formal business setups.

LLPs have emerged as an ideal choice for entrepreneurs in the Union Territory due to the following factors:

1. Thriving Business Environment in Daman and Diu

Daman and Diu remain among India’s prominent industrial clusters, supported by strong connectivity to major trade corridors. The UT also boasts access to raw materials and distribution networks through Vapi, Surat, and Mumbai, which strengthens its role in regional manufacturing and logistics.

Along with industrial production, the region reports steady growth in tourism, hospitality, food processing, and small trade activities. 

Many enterprises in the region prefer structured business formats like LLPs to manage contracts, ensure compliance transparency, and build trust among clients and suppliers. Stable infrastructure and reliable transport, and power availability continue to support business expansion in the Union Territory.

2. Access to Industrial Clusters and Strategic Logistics

The location provides strong transport access to western ports and major commercial centers, which supports efficient movement of goods and raw materials. Connectivity has improved further after the 2024 upgrades to NH-848B and NH-251, reducing travel time to nearby industrial hubs and logistics points. The region is well-connected to:

• Vapi industrial zone
• Surat and Valsad manufacturing belts
• Nhava Sheva and Mumbai port trade routes
• Regional airports (Daman Airport) and national highways(NH-848B and NH-251)

Ongoing development of the Delhi–Mumbai Industrial Corridor (DMIC) is expected to strengthen freight capacity and improve supply chain integration in the region. These infrastructure improvements support expansion for businesses in packaging, distribution, export services, warehousing, and contract manufacturing.

3. Government Support for Manufacturing and MSMEs

The UT administration supports industries through subsidies, tax relief, and simplified registrations. Moreover, small and medium factories benefit from easier approvals, priority licensing, and access to financial incentives. Many enterprises register LLPs to meet compliance requirements for government tenders and corporate supply chains.

The administration supports industrial and MSME growth through policy incentives and simplified approvals. Key initiatives include:

• Industrial Policy for Dadra and Nagar Haveli and Daman and Diu, offering capital and interest subsidies for manufacturing units.
• Single Window Clearance system, enabling faster approvals for licenses, factory permissions, and utility connections.
• CGTMSE scheme, providing collateral-free loans for MSMEs to support expansion and new project funding.

These initiatives strengthen business confidence and support formal enterprise setup in the Union Territory.

4. Limited Liability Protection for Partners

Partners are protected from personal liability. Risk stays within the business structure and does not impact personal assets. This is important for enterprises handling operational, machinery, logistics, distribution, or financial exposure in the Union Territory.

The LLP structure separates ownership from liability, which supports decision-making without fear of personal financial loss. It also improves confidence when entering long-term supply contracts or investment agreements, where risk-sharing clarity is essential.

5. Cost-Effective and Simple to Set Up

LLPs require fewer filings and lower compliance costs compared to private limited companies. There is no mandatory audit unless turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.

Besides, there is no minimum capital requirement, which allows founders to begin operations with available resources. This makes the structure suitable for MSMEs and growing enterprises looking to control initial operational expenses.

6. Flexible Business Operations

Partners decide roles, voting powers, responsibilities, and profit distribution according to the terms written in the LLP Agreement. Operational decisions can be updated easily when partners change or when the business expands. This flexibility supports businesses in sectors where team size, investment contribution, or management needs vary over time.

7. Separate Legal Identity

The LLP functions independently from its partners. It can:

• Own property
• Open and manage bank accounts
• Sign contracts
• Sue or be sued
• This creates business continuity and improves external trust.

In conclusion, for entrepreneurs and small-to-medium enterprises in Daman and Diu, the LLP structure has emerged as one of the most practical and strategic business choices.

LLP registration in Daman and Diu is a structured and MCA-regulated process under the LLP Act, 2008. You must meet the following requirements to start an LLP in the Union Territory:

• Minimum Partners: You need at least two partners to start an LLP. There is no maximum limit on the number of partners you can add later.
• Designated Partner Requirement: At least two partners must act as Designated Partners. They are responsible for compliance and legal filings.
• Resident Partner Requirement: At least one Designated Partner must be an Indian resident. They must have stayed in India for at least 120 days in the previous financial year.
• Eligible Partners: Individuals and corporate bodies, such as companies or LLPs, can become partners in a Daman and Diu-based LLP.
• Digital Signature Certificate: Every Designated Partner must obtain a Digital Signature Certificate(DSC) to sign incorporation forms on the MCA (mca.gov.in) platform.
• DIN or DPIN Requirement: All Designated Partners must hold a Director Identification Number (DIN) or Designated Partner Identification Number (DPIN) issued by the Ministry of Corporate Affairs.
• LLP Name Requirement: Your LLP name must be unique and compliant with MCA naming rules. It should not match or closely resemble an existing registered business or trademark.
• LLP Agreement Requirement: The LLP Agreement must be filed within 30 days of incorporation. It outlines rights, duties, and profit-sharing terms between partners.
• Foreign Partner Eligibility: Foreign nationals and foreign entities may join LLPs in Daman and Diu. They must follow Foreign Exchange Management Act (FEMA) regulations and invest in sectors where 100 percent FDI is allowed under the automatic route.
• Capital Requirement: There is no minimum capital requirement. Contributions may be made through:
  • Cash
  • Physical assets
  • Intellectual property
  • Services or other mutually agreed resources.

Meeting these eligibility criteria ensures a smooth and compliant LLP registration process in Daman and Diu.

LLP company registration in Daman and Diu is a fully online process through the MCA portal. Follow these steps to register your LLP efficiently:

Step 1: Obtain DSC for All Partners

• You must obtain a DSC for each Designated Partner.
• A Class 3 DSC is required for online filing.
• DSCs are available through licensed certifying agencies, including e-Mudhra, NSDL, and Sify.

Step 2: Apply for DIN/DPIN

• Every Designated Partner must have a DIN or DPIN.
• You may apply for DIN for up to two partners directly while filing the FiLLiP form.
• For additional partners, you must file Form DIR-3 separately.

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

• File the RUN-LLP form for reserving your LLP name.
• Submit up to two names for approval.
• Avoid names that are similar to existing companies or trademarks.

You may resubmit the form once if the name is rejected.

Tip: Use RegisterKaro’s free company name search tool to avoid rejection.

Step 4: File Consent of Partners (Form 9)

• Formal consent must be obtained from all Designated Partners.
• Each partner signs Form 9, confirming eligibility under the LLP Act.
• Attach Form 9 along with the FiLLiP during incorporation.

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

• Once the name is approved, file the FiLLiP form to incorporate your LLP.
• This form also provides DIN allotment for up to two partners.
• Attach identity and address documents for partners and proof of registered office.

Step 6: Drafting and Filing the LLP Agreement

• Draft the LLP Agreement with clear terms for capital contribution, duties, decision-making rights, and profit sharing.
• File the Agreement with the ROC in Form 3 within 30 days of incorporation. The Registrar of Companies for Daman and Diu operates under the ROC Ahmedabad. The office is located at ROC Bhavan, Opp. Rupal Park Society, Behind Ankur Bus Stop, Naranpura, Ahmedabad, Gujarat 380013. It can be contacted via 079-27437597.
• Execute the Agreement on stamp paper applicable to Daman and Diu.

Step 7: Obtaining the COI

• After verification, ROC Ahmedabad will issue the Certificate of Incorporation (COI).
• This confirms the legal registration of your LLP and activates the business entity.

Step 8: Applying for PAN and TAN for Your LLP

• Apply for a PAN and TAN through NSDL or UTIITSL.
• These are necessary for tax filings and opening a business bank account.

The complete LLP registration process in Daman and Diu generally takes 10 to 15 working days, depending on document accuracy and MCA processing time.

Note: If the Agreement is not filed within the allowed period, your LLP automatically follows Schedule I of the LLP Act.

Certain documents must be submitted during the incorporation process to verify the identity of partners and the registered office location. These documents are uploaded on the MCA portal during online filing and must be valid and clearly readable to avoid delays or rejections.

From the Partners

• PAN and Aadhaar cards for every partner
• Identity proof: Passport, Voter ID, or Driving License
• Address proof: Latest bank statement or utility bill not older than two months
• Passport-size photograph of each partner 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 the Registered Office Address in Daman and Diu

• Electricity bill, gas bill, or telephone bill (not older than two months)
• Copy of the rent agreement/lease deed or property ownership document (like a sale deed)
• Registered office location must be available for official communication
• If the premises are rented, you must obtain a No Objection Certificate (NOC).
• The NOC must confirm the use of the property as an LLP registered office

Providing accurate and updated documents supports a smooth incorporation process and prevents delays in verification by the ROC Ahmedabad. Clear documentation also ensures that the LLP is registered with correct legal records, enabling faster approval and activation of the business entity.

The total cost for LLP registration in Daman and Diu depends on government fees, stamp duty, digital signature expenses, and professional service charges. Understanding the fee structure helps you plan your registration smoothly and avoid unexpected expenses.

Below is a clear fee breakdown:

Note: New DPIN is free when applied through FiLLiP.Rs. 500 applies only for DIN allotment via DIR-3, which is used rarely for LLP registrations.

Stamp Duty for LLP Registration in Daman & Diu

Stamp duty varies by state and depends on the capital contribution specified in the LLP Agreement. As per the MCA, the stamp duty in Daman and Diu is as follows:

Penalties for LLPs in Daman and Diu

LLPs in Daman and Diu must comply with the LLP Act, 2008, and MCA regulations. Failure to meet mandatory filing deadlines or compliance requirements can result in penalties and extra charges.

By evaluating the LLP registration fees in advance, you can streamline the process and focus on building your LLP without financial surprises. Timely monitoring and accurate submissions help maintain an active status and prevent legal or financial consequences.

After registering your LLP, you must follow annual and event-based compliances to keep your LLP active on the MCA records. Delays lead to penalties and legal issues. Staying compliant protects credibility during audits, tenders, bank loans, and contract approvals. Here is a list of LLP annual compliances:

• Filing of Annual Returns: Every LLP must file Form 11 within 60 days from the end of the financial year. The due date is May 30. This filing includes a summary of partners, capital contributions, and any changes in structure.
• Statement of Account and Solvency (Form 8): File Form 8 within 30 days from the end of the six months of the financial year. The due date is October 30. This form reports financial status and declares solvency.
• Income Tax Return Filing for the LLP: You must file ITR-5 every year. If turnover crosses Rs. 40 lakh or capital contribution exceeds Rs. 25 lakh, a tax audit becomes mandatory.
• Additional Event-Based Compliance:
  • Partner appointment or resignation (Form 4)
  • LLP Agreement changes (Form 3)
  • Change of registered office (Form 15)
  • Change of LLP name (Form 5)

Business-specific requirements include GST registration if turnover exceeds Rs. 40 lakh for goods or Rs. 20 lakh for services. You may need Shops and Establishments registration and Professional Tax registration when applicable.