LLP Registration in Hubli-Dharwad

A Limited Liability Partnership (LLP) is a business model that combines the features of a partnership and a company. It allows partners to manage the business together while protecting their personal assets from business debts. Under the LLP Act 2008, LLPs are treated as a separate legal entity. This implies it can own property, enter into contracts, hold assets or liabilities under its own name, independent from its partners.

LLPs are best suited for businesses where professional expertise, services, or partnership-based operations are core. Hubli-Dharwad, as a major commerce hub in Karnataka, provides a strong base for manufacturing and service industries. The increasing relevance of this region creates a good opportunity for business professionals to register their LLPs in Hubli-Dharwadi.

You can get the following benefits from registering your LLP in Hubli-Dharwad:

• Access to the Karnataka Startup ecosystem
• Growing industrial and commercial market opportunities
• Lower operational and infrastructure costs
• Proximity to major business hubs like Bengaluru and Pune

Recent data show that Karnataka achieved a GDP growth rate of 7.4% in 2024–25, making it one of the fastest-growing states in India. Hubli-Dharwad (aka Hubli and Dharwad), as the largest city and a major business hub of Karnataka, stands to benefit the most from this growth. The significant economic impact of this region makes it a good choice for registering your LLP here. Here’s what Hubli-Dharwad has to offer for your LLP:

• Strategic business location: Hubli-Dharwad is a well-positioned city in Karnataka. With an operational port, a major railway junction, a well-developed highway network, and access to river ports, the twin city functions as a major transit and logistics hub for Karnataka.
• Growing commercial hub:  Hubli-Dharwad is recognised as the largest urban agglomeration in Karnataka. The twin city hosts a cluster of small- and medium-scale industries that many entrepreneurs have shown their interest in. As a result, Investments in these enterprises have increased substantially. The current position of the city's commercial growth highlights its importance as a major urban economic centre.
• Increasing Demand for the Service Industry: Demand for services like consulting, IT, healthcare, finance, legal, and other professional services is growing in Hubli-Dharwad. LLP incorporation in the following service industry makes a good match.
• Government and Startup Support: The Government of Karnataka has created a supportive ecosystem for startups and SMEs through state-level initiatives. The policies aim to foster innovation, business growth, and job creation in the state.
  Under these programs, eligible startups and small businesses across the state, including those based in Hubli–Dharwad, may access the following benefits:
  • Subsidized interest rates on bank loans
  • Financial grants
  • Incentives for setting up operations
  • Support for infrastructure or incubation.

This state-backed support reduces the financial burden of the entrepreneurs in the early stages of business.

Registering an LLP can become complex if you are not familiar with the legal requirements. To make the process easier, here is the list of important documents and details required to register your LLLP in Hubli-Dharwad.

• Minimum Required Partners: To register an LLP, a company must have at least 2 partners. There is no upper limit in this case.

• Designated Partners Requirement: Of all partners, 2 must be Designated Partners, who will be responsible for compliance and legal duty.

• Residency Requirement: At least one designated partner must be a resident of India (i.e, have stayed in India for 120 days in the last financial year).
• Partner Requirement: Individuals and corporate bodies (companies, LLPs) can become LLP partners in Hubli-Dharwad. Partners must not be:
  • Undischarged insolvent
  • Declared of unsound mind by the court
• Digital Signature Certificate (DSC): Every Designated Partners must have a Digital Signature Certificate (DSC) to sign documents digitally.

• Director Identification Number (DIN)/DPIN: All designated Partners must hold a  Director Identification Number (DIN)/Designated Partner Identification Number issued by the Ministry of Corporate Affairs (MCA).

• Unique Name Approval: The LLP name must be unique and not too similar to any existing company name. Name reservation can be done through the RUN-LLP service on the MCA website.

• Registered Office Address: The LLP must have an official registered address in India for official communication.

• Capital Requirements: There’s no minimum capital requirement to set up an LLP in Hubli-Dharwadi.

• FEMA / FDI-Related Regulatory Compliance: Foreign capital or foreign partner participation must comply with the FEMA Act, 1999.

Starting an LLP can be easier if you know the right steps to follow. Here is the step-by-step guide for you to register your LLP in Hubli-Dharwad.

Step 1: Obtain Digital Signature Certificate (DSC) for All Partners

Since all LLP registration forms are filed online through the MCA portal, every partner must obtain a DSC.

• Each designated partner must obtain a Class 3 DSC.
• DSC ensures safe and authentic digital signatures.
• DSC can be obtained from licensed Certifying Authorities such as e-Mudhra, Sify Safescrypt, or NSDL e‑Governance Infrastructure Ltd.

Step 2: Apply for Director Identification Number (DIN)

To be legally recognised, every partner must have a DIN number.

• You can apply for a DPIN for up to 2 partners instantly while filing the FiLLiP form.
• You have to file Form DIR-3 separately if you have more than 2 partners.

Step 3: Get Name Approval Using RUN-LLP Service

You can propose a unique name for your LLP using the RUN-LLP application on the MCA portal. Your name must:

• Not too identical to other LLPs or companies
• Avoid Trademarks
• End with the suffix “LLP”.

You can submit up to 2 names per application to improve the chances of approval.

Tip: Use RegisterKaro’s free company name search tool before filing to avoid name rejections.

Step 4: Filing for Incorporation (FiLLiP Form)

Submit the FiLLiP form on the MCA portal along with the following required documents:

• Identity and address proof of all partners
• Registered office address proof (plus utility bill within last 2 months)
• No Objection Certificate (NOC) from the property owner (if the office is rented)
• Consent of partners

Pay incorporation fees depending on the capital contribution declared.

Step 5: Drafting and Filing the LLP Agreement

This is the most important document of the LLP. It defines:

• Rights and responsibilities of partners
• Capital contribution and profit-sharing ratio
• Rules for decision-making, dispute resolution, and partner exit

The LLP Agreement must be executed on stamp paper and filed in Form LLP-3 within 30 days of incorporation to avoid penalties.

Step 6: Obtaining Certificate of Incorporation (COI)

After the Registrar of Companies (ROC) approves the FiLLiP form, the Certificate of Incorporation (COI) will be issued. This confirms the legal presence of your LLP in Hubli-Dharwad.

Step 7: Applying for PAN and TAN

The LLP must obtain the following documents to be tax-ready:

• PAN (Permanent Account Number) for taxation
• TAN (Tax Deduction Account Number) if the LLP will deduct TDS

The Income Tax department issues these, and they are necessary for opening bank accounts and handling legal compliance.

The following documents are required to register your LLP in Hubli-Dharwad, Karnataka:

1. Documents Required from Partners

• For Identification, a PAN card and an Aadhar card are required.
• Proof of address/residence proof: Aadhaar card, Voter ID, Driving Licence, Passport, electricity bill, or a recent utility bill (not older than 2-3 months).
• Photograph: Recent passport-size photo with a clear white background.

2. Document for Registered Office Address (LLP’s Address)

• Utility bill (electricity/telephone/water/broadband)
• Property ownership proof
• Copy of the rent agreement
• No Objection Certificate (NOC) from the Property owner (if rented).

3. Documents required for Foreign Nationals/NRIs

• Notarized (or apostilled) passport copy - Required for Identity proof.
• Notarized (or apostilled) address proof -
• The following documents are required from the country of residence: bank statement, utility bill, driving licence, residence card, etc.

Note: If documents are in a language other than English, they need to be translated into English before submission.

The registration cost of an LLP varies based on your capital contribution and the professional services required for accurate submission. Here’s a breakdown of the expenses you will require to register your LLP in Hubli-Dharwad:

• Name Reservation Fee: Rs. 200 for filing the RUN-LLP form.
• Incorporation Fee:
  • Rs. 500 for LLPs with capital contribution up to Rs. 1 lakh
  • Rs. 2,000 for contributions between Rs. 1 lakh to Rs. 5 lakhs
  • Rs. 4,000 for contributions between Rs. 5 lakhs to Rs. 10 lakhs
  • Rs. 5,000 for contributions above Rs. 10 lakhs
• Digital Signature Certificate: Rs. 1,000 - Rs. 3,000 per designated partner, depending on validation level and provider.
• DIN/DPIN Application: Rs. 500 per designated partner.
• Professional Services: Rs. 6,000 - Rs. 15,000 for complete LLP registration assistance.
• LLP Agreement Drafting: Rs. 3,000 - Rs. 10,000 depending on complexity and customisation requirements.
• Stamp Duty for LLP Registration: Varies by state, typically ranging from 0.1% to 1% of the capital contribution.

Note: The expense breakdown above does not cover the specific LLP registration consultant charges they might charge for their services.

Penalties and Charges for LLP Registration

Incorrect or delayed LLP registrations and compliance can cost you fines or penalties. Here’s the list of defaults and penalties against them:

• Late Filing of LLP Agreement (Form 3): Rs. 100 per day up to a maximum of  Rs. 5,000.
• Delayed Annual Returns (Form 11): Rs 100 per day for the period of delay.
• Late Filing of Statement of Accounts (Form 8): Rs. 100 per day for the period of delay.
• Non-Compliance with Various Provisions: Penalties ranging from Rs. 1,000 to  Rs. 5 lakhs, depending on the nature of the violation.
• Operating without Registration: Can result in personal liability for all partners and potential legal actions.
• False Statements in Documents: Penalties up to  Rs. 5 lakhs and potential criminal proceedings.
• Non-Disclosure of Interest by Partners: Fine up to  Rs. 1 lakh for the LLP and the concerned partner.
• Conducting Prohibited Business: Cancellation of registration and penalties up to  Rs. 5 lakhs.

Let’s discuss the Post-Registration compliance for your LLP in Hubli-Dharwad to avoid penalties and function smoothly:

Filing of Annual Return (Form 11)

• Every LLP in Hubli-Dharwad must file its Annual Return in Form 11 with the MCA every year.
• Make sure to file it within 60 days from the end of the financial year (i.e., by 30th May).

Statement of Account & Solvency (Form 8)

• Every LLP must file Form 8 annually to declare its financial position and confirm solvency.
• Make sure to file it within 30 days from the end of the six months of the financial year (i.e., by 30th October).

Income Tax Return Filing for LLP

LLPs registered in Hubli-Dharwad must file an Income Tax Return annually:

• By 31st July, if an audit is not required
• By 31st October, if an audit is required. The Income Tax Act requires accounts to be audited if the annual turnover exceeds ₹40 lakhs or the capital contribution exceeds ₹25 lakhs.
• LLPs operating in Karnataka must obtain Professional Tax Registration and pay monthly tax for employees, and partners are required to pay annually as per the prescribed slab rate.

State Specific Requirements

• Shops & Establishment Act Registration: All businesses operating commercial establishments in Karnataka must register under the Karnataka Shops and Commercial Establishments Act, 1961, within 30 days of starting their operations.
• Trade License from HDMC: All LLPs in Hubli-Dharwad must obtain a Trade License from Hubli-Dharwad Municipal Corporation (HDMC).