Sections 20 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 20 punishes anyone who carries on business under a name ending in "Limited Liability Partnership" or "LLP" without being incorporated as an LLP. Section 21 requires every LLP to show its name, registered office address and registration number, and a statement that it is registered with limited liability, on its invoices, official correspondence and publications. The 2021 Act changed the consequence in section 21 to a penalty of Rs 10,000. If a notice has reached you on either point, our legal consultation service can help.
A person carrying on business under a name ending in "Limited Liability Partnership" or "LLP" (or a contraction or imitation of it), unless duly incorporated as an LLP, is punishable with fine of not less than Rs 50,000 and up to Rs 5 lakh (section 20). An LLP must ensure that its invoices, official correspondence and publications bear its name, registered office address and registration number, and a statement that it is registered with limited liability (21(1)). Contravention makes the LLP liable to a penalty of Rs 10,000 (21(2), substituted in 2021).
Sections 20 and 21 at a glance
| Provision | What it provides |
|---|---|
| s.20 | Using "Limited Liability Partnership" or "LLP" (or a contraction or imitation) as the last words of a business name without being incorporated: fine of Rs 50,000 to Rs 5 lakh |
| 21(1)(a) | Invoices, official correspondence and publications must bear the name, address of registered office and registration number |
| 21(1)(b) | They must also carry a statement that the LLP is registered with limited liability |
| 21(2) | Penalty of Rs 10,000 on the LLP for contravention |
Section 20: improper use of the words
"If any person or persons carry on business under any name or title of which the words 'Limited Liability Partnership' or 'LLP' or any contraction or imitation thereof is or are the last word or words, that person or each of those persons shall, unless duly incorporated as limited liability partnership, be punishable with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees."
Reading the section:
- Who. "Any person or persons" who carry on business under the name. Where several persons carry on business, each is liable.
- What. The business name or title ends with "Limited Liability Partnership" or "LLP", or any contraction or imitation. So "L.L.P." or a close copy is covered on the face of the words.
- The exception. Persons who are duly incorporated as an LLP are outside the section; it bites on those who are not.
- The consequence. A fine, not a penalty, of at least Rs 50,000 and up to Rs 5 lakh. The 2021 Act did not change this section; the clean text carries no amendment footnote on it.
This pairs with section 15(1), which requires an LLP's name to end with these words (see section 15). Section 15 tells LLPs how to end their names; section 20 tells everyone else not to.
Example. Two friends run "Sharma Bros Traders LLP" as an ordinary partnership and never incorporate. Each of them is a person carrying on business under a name ending in "LLP" without being incorporated, so section 20 applies to each. Had they incorporated, they would be outside it. The text does not say how a prosecution is brought; later articles in this series cover offences and courts.
Section 21(1): what must be shown
Every LLP "shall ensure that its invoices, official correspondence and publications bear the following":
| Clause | Required |
|---|---|
| (a) | The name, the address of its registered office and the registration number of the LLP |
| (b) | A statement that it is registered with limited liability |
Three observations:
- Three document types. Invoices, official correspondence and publications. The text does not list letterheads, websites or emails separately; whether they are "official correspondence" or "publications" depends on the document, so the safe course is to carry the particulars on all of them.
- The registration number. The section calls it "registration number". The text does not say what number it means or in what form. Our post What is LLPIN? explains the number issued on registration.
- The statement. The wording "registered with limited liability" is the words of the section; the section does not prescribe a fixed sentence beyond that.
The registered office is the address under section 13, so a change of registered office carries through to these documents once the change takes effect on filing.
Section 21(2): the penalty
As substituted by the 2021 Act (clause 10): "If the limited liability partnership contravenes the provisions of this section, the limited liability partnership shall be liable to a penalty of ten thousand rupees."
| Point | Before 2021 | Now |
|---|---|---|
| Nature | Fine | Penalty |
| Amount | Not less than Rs 2,000 and up to Rs 25,000 (footnote 29) | Rs 10,000 |
| Liable | The LLP | The LLP |
| Daily addition | None stated | None stated |
Note that, as printed, the penalty falls on the LLP; unlike sections 10 and 13, the sub-section does not name the partners.
Comparing sections 20 and 21
| Point | Section 20 | Section 21 |
|---|---|---|
| Aimed at | Persons not incorporated as LLPs using the words | LLPs that omit required particulars |
| Consequence | Fine Rs 50,000 to Rs 5 lakh | Penalty Rs 10,000 |
| Changed in 2021? | No | Yes, sub-section (2) |
Practical points
- Update invoice templates, letterheads and standard emails to carry the name, registered office address, registration number and the limited liability statement.
- After a change of name or registered office, replace the old details at once.
- If you are an unincorporated business using "LLP" in a name, either incorporate or drop the words.
Need help with name compliance?
Missing particulars on invoices can be corrected quickly, but use of "LLP" by an unincorporated business is a more serious matter. Our legal consultation team can review your documents and advise on the fix or on incorporating properly.
Key takeaways
- Using "Limited Liability Partnership" or "LLP" (or a contraction or imitation) as the last words of a business name without incorporation draws a fine of Rs 50,000 to Rs 5 lakh (section 20).
- Invoices, official correspondence and publications must carry the name, registered office address, registration number and a statement of registration with limited liability (21(1)).
- Contravention of section 21 is a penalty of Rs 10,000 on the LLP (21(2)).
- Before 2021, section 21(2) was a fine of Rs 2,000 to Rs 25,000.
Read next
- Section 15: name of LLP
- Section 19: change of registered name
- Section 22: eligibility to be partners
- Penalty Provisions Under LLP Act: Complete List
Disclaimer: Based on the Limited Liability Partnership Act, 2008 as amended by the Limited Liability Partnership (Amendment) Act, 2021, as consulted on 1 October 2026. Forms, fees and procedure are set by the LLP Rules, 2009 as amended from time to time. This article is general information, not legal advice; check the official text before acting.