Limited Liability Partnership Firm can be formed in India by two of the Partners. There is no limit on the maximum number of partners in LLP. The Partners should have a DPIN (Designated Partner Identification Pin). The designated member of the Firm has some extra responsibilities on top of those of ordinary members. The filing and recording of the Limited Liability Partnership affairs should be monitored by the designated member and having the responsibility for non-filing of return and recording. LLP is a legal binding agreement between the partners who are in the business together, which describes how the partnership will be run and the rights and duties of the members themselves.
Partnership agreement or LLP is not compulsory but if made will help in case of disputes. A basic difference between an LLP and joint stock company lies in that internal governance structure of a company is regulated by statute whereas for an LLP, it would be by a contractual agreement between partners.