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    Compliances Under LLP

    All are aware that a Limited Liability Partnership (LLP) is a body corporate, governed by the Limited Liability Partnership Act, 2008 and rules framed thereunder. An LLP has a distinct legal entity separate from that of its partners, it has perpetual succession and any change in the partners shall not affect the existence, rights or liabilities of the LLP. It is a vehicle enabling the Partnerships to enter in to a Corporate frame work with Limited liability, and giving the partners/members the option and flexibility of devising/structuring the control document i.e., LLP agreement, as mutually agreed by the partner/members.

     

    Similar to Companies registered under the Companies Act, 1956/2013, compliances by a Limited Liability Partnership [LLP] can be classified in to (a) continuous compliance i.e., compliance as to maintenance of minimum partners/designated partners, (b)event based, i.e., happening of an event such as increase of Contribution, Admission of Partners, Resignation of Partners, Shifting of Registered office address of the LLP etc., and accordingly, the LLP will have to file the returns/forms/information with the Registrar of Companies/LLP, in compliance with the said provisions of the LLP Act and (c) Time based compliances i.e., based on time, like filing of Annual Return and Statement of Solvency.

     

    An effort has been made to list out the Continuous compliance, Event based and Time based

    Compliances:

    Continuous Compliances:

     

    Sl.

    Name of the Section of

    Compliance with regard to

    Penalty for non-Compliance

     

    the Act, along with the

    No.

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter –II

    The LLP shall have a minimum of Two (02) Partners.

    If at any time, the number of Partner in a LLP

     

    1.

     

     

     

     

     

     

     

     

    is reduced to less than Two(02), and the LLP

     

    Section 6 (1) & (2)

     

    carried on the business for more than Six (06)

     

     

     

     

     

     

     

     

     

     

     

     

    months, with the number so reduced, then

     

     

     

     

     

     

     

     

     

     

    the  remaining  Partner  shall  be  liable

     

     

     

     

     

     

     

     

     

     

    personally for the obligations of the LLP

     

     

     

     

     

     

     

     

     

     

    incurred during the period

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – II

    The LLP shall have at least Two (02) Designated Partners who are

    For non-compliance of the requirement, the

     

    2.

     

     

     

     

     

     

     

    individuals and at least one of them shall be resident in India.

    LLP and its every Partner, shall be punishable

     

    Section 7(1)

     

    with fine :

     

     

     

     

     

     

     

     

     

     

     

    Explanation: “Resident in India” means a person who has stayed

     

     

     

     

     

     

     

     

     

     

    in India for a period of not less than 182 days during the

    Not less than Rs.10,000/-, but which may

     

     

     

     

     

     

     

     

     

    immediately preceding one year

    extend to Rs.5,00,000/-. [Sec.10(1)]

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – III

    Invoices, Official Correspondence and publication of the LLP shall

    For non-compliance of the requirement, the

     

    3.

     

     

     

     

     

     

     

    bear:

    LLP shall be punishable with fine :

     

    Section – 21 (1)

     

     

     

     

    The name, address of its registered office and registration number

     

     

     

     

     

     

     

     

     

     

    Not less than Rs.2,000/-, but which may

     

     

     

     

     

     

     

     

     

    of the LLP, and a Statement that it is registered with Limited

    extend to Rs.25,000/-. [Sec.21 (2)]

     

     

     

     

     

     

     

     

     

    Liability; and

     

     

     

     

     

     

     

     

     

     

    A statement that it is registered with Limited Liability.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    16 | P a g e


     

    Sl.

    Name of the Section of

    Compliance with regard to

    Penalty for non-Compliance

     

    the Act, along with the

    No.

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – VII

     

    Maintenance of Books of accounts on cash basis or accrual basis

    For non-compliance of the requirement, the,

     

    4.

     

     

     

     

    and according to double entry system of accounting, at the

    LLP shall be punishable with fine :

     

     

    Section  34  r/w

    Rule

    registered office of the LLP.

     

     

     

     

     

     

     

     

    No.24 of the LLP Rules,

    Auditing of Accounts: Applicable to LLPswhose turnover exceeds

    Not less than Rs.25,000/-, which may extend

     

     

    2009.

     

     

    to Rs.5,00,000/- [Sec.34(5)].

     

     

     

     

     

     

    Rs.40,00,000/- in  any financial year, or whose contribution

     

     

     

     

     

     

     

    exceeds Rs.25,00,000/-.

    Every  Designated  Partner  shall  be

     

     

     

     

     

     

    Else auditing not required.

    punishable with fine:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Not less than Rs.10,000/- which may extend

     

     

     

     

     

     

     

    to Rs.1,00,000/-[Sec.34(5)].

     

     

     

     

     

     

     

     

     

     

    Time Based Compliance:

     

    Sl.

    N a m e

    o f

    t h e

     

     

     

     

     

     

     

     

     

     

    Section of the Act,

    Compliance with regard to

    Compliance with in

     

    Form and

     

    Penalty for non-Compliance

    No.

    along  with

    the

     

     

     

     

    attachments

     

     

     

     

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – VII

     

    Preparation of Statement of Account and

    Six

    (06)

    months

    LLP

    Form

    No.8,

    For  non - compliance  of  the

    1.

     

     

     

     

     

    Solvency for the FY, within a period of Six

    from the end of the

    along

    with

    the

    requirement,  the,  LLP  shall  be

     

    Section

    34

    r/w

    (06) months from the end of the Financial

    F Y

    i . e . ,

    3 0 t h

    Statement of Assets

    punishable with fine :Not less than

     

     

    and

    Liabilities

    and

    Rs.25,000/-, which may extend to

     

     

    Rule

    No.24

    of

    year, and filing with ROC.

    September of every

    I n c o m e

    a n d

     

     

    Rs.5,00,000/- [Sec.34(5)].

     

     

    the

    LLP  Rules,

     

    year.

     

     

    Expenditure

    and

     

     

     

     

     

     

    disclosure

    under

    Every Designated Partner shall be

     

    2009.

     

     

     

    and

     

     

    p r o v i s i o n s

    o f

     

     

     

     

     

     

     

     

     

    section

    22

    of

    the

    punishable with fine: Not less than

     

     

     

     

     

     

     

     

     

     

    Micro,

    Small

    and

    Rs.10,000/- which may extend to

     

     

     

     

     

     

     

    Filing with Registrar

    M

    e

    d  i

    u

    m

    Rs.1,00,000/- [Sec.34(5)].

     

     

     

     

     

     

     

    with in 30 days of 6

    E n t e r p r i s e s

    +

     

     

     

     

     

     

     

    Development

    Act,

    Additional fee of Rs.100/- for each

     

     

     

     

     

     

     

    months  i.e.,  30th

    2006,is to be added

    day of delay in filing the return, after

     

     

     

     

     

     

     

    October.

     

    as attachment.

     

    30 days.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    17 | P a g e


     

    Sl.

    N a m e

    o f

    t h e

     

     

     

     

     

     

     

     

     

    Section of the Act,

    Compliance with regard to

    Compliance with in

    Form and

    Penalty for non-Compliance

    No.

    along  with

    the

     

     

     

     

    attachments

     

     

     

     

     

     

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – VII

     

    Every LLP shall file Annual Return with the

    Within  Sixty  (60)

    LLP Form No.11,

    For  non - compliance  of  the

     

     

     

     

     

    Registrar with Sixty (60) days of closure of

    days of closure of its

    mentioning the

    requirement,  the,  LLP  shall  be

    2.

     

    Section

    35

    r/w

    its financial year

     

     

    financial

    year. i.e.,

    details as to the

    punishable with fine :Not less than

     

     

    Rule 25

    of

    the

     

     

     

    30

    th

    May

    of every

    Partners,

    Rs.25,000/-, which may extend to

     

     

     

     

     

     

    Rs.5,00,000/- [Sec.35 (2)].

     

     

    LLP Rules, 2009.

    The annual return

    of an

    LLP having

    year.

     

     

    Contribution

    Every Designated Partner shall be

     

     

     

     

     

    turnover uptoRs. 5

    Crores,

    during the

     

     

     

     

    received from

     

     

     

     

     

     

     

     

     

    punishable with fine: Not less than

     

     

     

     

     

    corresponding FY or contribution uptoRs.

     

     

     

     

    them against

     

     

     

     

     

     

     

     

     

    Rs.10,000/- which may extend to

     

     

     

     

     

    50 Lakhs, shall be accompanied with a

     

     

     

     

    their obligation,

    Rs.1,00,000/- [Sec.35(2)].

     

     

     

     

     

    certificate from a

    designated partner,

     

     

     

     

    details of any

    +

     

     

     

     

     

    other than the signatory to the annual

     

     

     

     

    penalties

    Additional fee of Rs.100/- for each

     

     

     

     

     

     

     

     

     

    day of delay in filing the return, after

     

     

     

     

     

    return, to the effect that annual return

     

     

     

     

    imposed on the

     

     

     

     

     

     

     

     

     

    30 days.

     

     

     

     

     

    contains true and correct information.

     

     

     

     

    LLP/Partner/

     

     

     

     

     

     

     

     

     

     

     

     

     

    Designated

     

     

     

     

     

     

    In all other cases, the annual return shall

     

     

     

     

    Partners, and

     

     

     

     

     

     

    be accompanied with a certificate from a

     

     

     

     

    details of

     

     

     

     

     

     

    Company Secretary in practice to the

     

     

     

     

    interests of the

     

     

     

     

     

     

    effect that he has verified the particulars

     

     

     

     

    Partners/Designat

     

     

     

     

     

     

    from the books and records of the limited

     

     

     

     

    ed Partners in

     

     

     

     

     

     

    liability partnership and found them to be

     

     

     

     

    other entities.

     

     

     

     

     

     

    true and correct.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    18 | P a g e


     

    Event Based Compliance:

     

    Sl.

    N a m e

    o f

    t h e

     

     

     

     

     

     

     

     

     

    Section of the Act,

    Compliance with regard to

    Compliance with in

     

    Form and

    Penalty for non-Compliance

    No.

    along

    with

    the

     

     

     

    attachments

     

     

     

     

     

     

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – II

     

    7(4) - Notice of appointment, cessation,

    Within  30

    days

    LLP

    Form  No.4,

    For  non-compliance  of  the

    1.

     

     

     

     

     

     

    change in name/ address/ designation of

    f r o m

    t h e

    along  with  the

    requirement,  the

    LLP  and

    its

     

    Section 7(4) and

    a designated partner or partner. and

    appointment/

    relevant  consent

    e v e r y  P a r t n e r,

    s h a l l

    b e

     

     

     

     

    (5)  r/wrule

    8,

    consent to become a partner/designated

    cessation/

     

    letter/resignation

    punishable with fine :

     

     

     

    10(8), 22(2) and

    partner  Notice

    of  appointment,

    Change

     

    letter, as the case

    Not less than Rs.10,000/-, which

     

     

    22(3) of

     

    cessation,  change in  name/  address/

     

     

    may be.

     

     

     

     

     

    may  extend  to  Rs.1,00,000/-

     

     

    LLP Rules, 2009

    designation.

     

     

     

     

     

    [Sec.10(2)].

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    +

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Additional fee of Rs.100/- for

     

     

     

     

     

     

     

     

     

     

     

     

     

    each day of delay in filing the

     

     

     

     

     

     

     

     

     

     

     

     

     

    return, after 30 days.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – III

     

    Appointment  of

    Designated  partner

    Within  30

    days

    LLP

    Form  No.4,

    For  non-compliance  of  the

    2.

     

     

     

     

     

     

    within 30 days of vacancy.

    f r o m

    t h e

    along  with  the

    requirement,  the

    LLP  and

    its

     

    Section 9

     

     

     

    appointment

     

    relevant  consent

    e v e r y  P a r t n e r,

    s h a l l

    b e

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    letter/ resignation

    punishable with fine :

     

     

     

     

     

     

     

     

     

     

     

     

    letter, as the case

    Not less than Rs.10,000/-, which

     

     

     

     

     

     

     

     

     

     

     

    may be.

    may  extend  to  Rs.1,00,000/-

     

     

     

     

     

     

     

     

     

     

     

     

     

    [Sec.10(2)].

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    +

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Additional fee of Rs.100/- for

     

     

     

     

     

     

     

     

     

     

     

     

     

    each day of delay in filing the

     

     

     

     

     

     

     

     

     

     

     

     

     

    return, after 30 days.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    19 | P a g e


     

    Sl.

    N a m e

    o f

    t h e

     

     

     

     

     

     

     

     

     

    Section of the Act,

    Compliance with regard to

    Compliance with in

     

    Form and

     

    Penalty for non-Compliance

    No.

    along

    with

    the

     

    attachments

     

     

     

     

     

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – III

     

    Shifting of Registered office of the LLP,

    Within  30  days

    LLP Form 15, along

    For  non-compliance  of  the

    3.

     

     

     

     

     

    and filing of the notice of such change

    from the change

    with the proof of

    requirement,  the

    LLP  and

    its

     

    Section  13

    (3)

    with the Registrar. The change shall take

     

    office,  Extract

    of

    e v e r y  P a r t n e r,

    s h a l l

    b e

     

     

     

     

     

    r/w with Rule 17

    effect only upon such filing

     

    the

    Resolution

    +

    punishable with fine :

     

     

     

    of the LLP Rules,

     

     

    S u p p l e m e n t a l

    Not less than Rs.2,000/-, which

     

    2009

     

     

     

     

     

    Agreement, if the

     

     

     

     

     

     

    may  extend  to  Rs.25,000/-

     

     

     

     

     

     

     

     

    change is requires

    [Sec.13(4)].

     

     

     

     

     

     

     

     

     

     

    Suppl. Agreement.

    +

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Additional fee of Rs.100/- for

     

     

     

     

     

     

     

     

     

     

     

     

    each day of delay in filing the

     

     

     

     

     

     

     

     

     

     

     

     

    return, after 30 days.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – III

     

    Direction received by the LLP from the

    Within Three (03)

    LLP

    Form

    No.1

    For  non-compliance  of  the

    4.

     

     

     

     

     

    Central Government to change its name,

    months from the

    and

    LLP

    Form

    requirement, the, LLP shall be

     

    Section 17

     

    which is in resemblance with any other

    date of receipt of

    No.5, along with

    punishable with fine :

     

     

     

     

     

     

     

     

     

     

     

    LLP or Body Corporate, and likely be

    the Direction

    t h e

    r e l e v a n t

    Not less than Rs.10,000/-, which

     

     

     

     

     

     

    mistaken for it.

     

    documents

     

     

     

     

     

     

     

     

     

     

     

    may  extend  to  Rs.5,00,000/-

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    [Sec.17(2)].

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Every Designated Partner shall

     

     

     

     

     

     

     

     

     

     

     

     

    be punishable with fine:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Not less than Rs.10,000/- which

     

     

     

     

     

     

     

     

     

     

     

     

    may  extend  to  Rs.1,00,000/-

     

     

     

     

     

     

     

     

     

     

     

     

    [Sec.17(2)].

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    20 | P a g e


     

    Sl.

    N a m e

    o f

    t h e

     

     

     

     

     

    Section of the Act,

    Compliance with regard to

    Compliance with in

     

    Form and

    Penalty for non-Compliance

    No.

    along

    with

    the

     

    attachments

     

     

     

     

    relevant rule

     

     

     

     

     

     

     

     

    Chapter – IV

     

    Filing of LLP Agreement – In case there is

    Within  30  days

    Form No.3, along

    Additional fee of Rs.100/- for

    5.

     

     

     

     

     

     

     

    no agreement, then the Mutual Eights and

    from the date of

    with

    the  initial

    each day of delay in filing the

     

    Section

    23

     

    (2),

    duties of the Partners shall be governed by

    Incorporation  (in

    agreement  and

    return, after 30 days.

     

     

    r/w

    Rule 21 of

    the First Schedule to the LLP Act.

    case of initial LLP

    the Supplemental

     

     

     

    the

    LLP

    Rules,

    Initial as well as Supplemental agreement

    Agreement)  and

    agreement

     

     

    2009

     

     

     

     

    also in the case of

     

     

     

     

     

     

     

     

     

     

     

    as to any change in the mutual

    a n y  c h a n g e

     

     

     

     

     

     

     

     

     

     

     

    Note: LLP  Agreement is not  a Public

    therein.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    document  and  is  not  available  for

     

     

     

     

     

     

     

     

     

     

     

     

    inspection.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Chapter – IV

     

    Intimation of Change in Partners

    Within  30  days

    LLP Form No.3 and

    For  non-compliance  of  the

    6.

     

     

     

     

     

     

     

     

    from the change.

    LLP

    Form  No.4,

    requirement,  the  LLP  and  its

     

    Section

    25,

     

    r/w

    As change in Partners requires execution

     

    along  with  the

    every Designated Partner, shall

     

     

     

     

     

     

    Rule

    22

    of

    the

    of a Supplemental agreement, the same

     

    r e q u i r e d

    be punishable with fine :

     

     

    LLP Rules, 2009

    also needs to be entered into and filed

     

    documents

    Not less than Rs.2,000/-, which

     

     

     

     

     

     

     

     

    with ROC.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    may  extend  to  Rs.25,000/-

     

     

     

     

     

     

     

     

     

     

     

     

    [Sec.25(4)].

     

     

     

     

     

     

     

     

     

     

     

     

    +Additional fee of Rs.100/- for

     

     

     

     

     

     

     

     

     

     

     

     

    each day of delay in filing the

     

     

     

     

     

     

     

     

     

     

     

     

    return, after 30 days, for each

     

     

     

     

     

     

     

     

     

     

     

     

    form.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

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