Limited Liability Partnership Act (LLP)

  • Incorporation of LLP
  • Annual Compliances
  • Closure Compliances
  • Other Compliances
Request a call back

All the above mentioned compliances can be done through Easethebiz.com, where all the said services will be provided in the most efficient and effective manner by the group of experts.

Annual Compliances
Compliance Description Time Period Penalties
Annual Return Every Limited Liability Partnership (LLP) is required to file an Annual return duly authenticated with the Registrar of Companies every year in E-Form 11. along with the prescribed fees Within 60 Days of the closure of the Financial Year Additional Fees of Rs. 100/- per day after the due date till the default continues.
Fine on LLP
  1. Minimum : INR 25,000/-
  2. Maximum: INR 5 Lacs
Fine on Designated Partner:
  1. Minimum : INR 10,000/-
  2. Maximum: INR 1 Lacs
Statement of Account and Solvency Every Limited Liability Partnership (LLP) is required to prepare a Statement of Accounts & Solvency of the Company and file the same with the Registrar of Companies every year in E-Form 8. along with the prescribed fees Within 6 months from the end of each Financial Year Additional Fees of Rs. 100/- per day after the due date till the date of default.
Fine on LLP
  1. Minimum : INR 25,000/-
  2. Maximum: INR 5 Lacs
Fine on Designated Partner:
  1. Minimum : INR 10,000/-
  2. Maximum: INR 1 Lacs
Minutes Book Keeping Every company is required to make the minutes of the proceeding of the meeting and is required to maintain a minutes books containing the minutes of the meeting of Partners at the Registered Office of the LLP Minutes Book are required to be maintained throughout the year for lifetime of the LLP Specific penalties for each type of contravention has been defined under the Act
Closure Compliances

The quickest way to close the non - operational LLP is through a process called Fast Track Exit (FTE) under LLP Act, 2008 read with Rule 37 of the LLP Rules, 2009:

Applicability:

Where a Limited Liability Partnership is not carrying on any business or operation

  • For a period of 1 year or more and all the partners have agreed to get the name of the LLP strike-off from the Register of the Registrar of Companies and
  • have filled all the overdue return in Form 8 and form 11 up to the end of the financial year in which the limited liability partnership ceased to carry on its business or commercial operations before filing form for the strike of the LLP.
Procedure:

An application in E-Form 24 shall be filled with the Registrar along with the prescribed fees and following documents:

  • A statement of account disclosing nil assets and nil liabilities, certified by a Chartered Accountant in practice made up to a date not earlier than thirty days of the date of filing of Form 24
  • An affidavit signed by the designated partners, either jointly or severally, to the effect,—
    1. That the Limited Liability Partnership has not commenced business or where it commenced business, it ceased to carry on such business from ________ (Date)
    2. That the limited liability partnership has no liabilities and indemnifying any liability that may arise even after striking off its name from the Register
    3. That the Limited Liability Partnership has not opened any Bank Account and where it had opened, the said bank account has since been closed together with certificate(s) or statement from the respective bank demonstrating closure of Bank Account
    4. That the Limited Liability Partnership has not filed any Income-tax return where it has not carried on any business since its incorporation, if applicable
  • A copy of the acknowledgement of the latest Income-tax return filed under the Income-tax Act,1961 (43 of 1961) and the rules made there under for the time being in force, where the limited liability partnership has carried out any business and has filed such return
  • Copy of the initial limited liability partnership agreement, if entered into and not filed, along with changes thereof in cases where the Limited Liability Partnership has not commenced business or commercial operations since its incorporation

Once the application has been filled with the Registrar, the same will be processed by the Registrar and if satisfied with all the requirements, will issue a public notice in official gazette for inviting any objection within a period of 30 days.

If no objections are filled within the time period prescribed the ROC will then proceed to strike-off the name of the LLP from its Register and the LLP shall stand dissolved.

Other Compliances

Any Limited Liability Partnership (LLP) as and when feels the need that a change is required in certain basic requirements of the LLP, the same has to be incorporated in the LLP Agreement and said change become effective from the date of amendment in the LLP Agreement. As an when there is a change in the LLP Agreement, the said change needs to be intimated to the Registrar of Companies, Ministry of Corporate Affairs, by filling the prescribed E-Forms for the same. Some of the major changes which require compliance as per the act includes the following:

  • Change in the Partnership: Admission of New Partners, Resignation of Old Partners needs to be intimated to the concerned Registrar of Companies in E-Form 4 within a period of 30 Days from the date of change. Along with that the Amended LLP Agreement is also filed with the ROC in E-Form 3 along with the prescribed fees.
  • Name Change of LLP: Every LLP who wish to change the name of its entity is required to get the approval from the Registrar of Companies before changing the name. A LLP will change its name only after the receipt of a new certificate of Incorporation from the concerned authority. An Application in E-Form 5 shall be filed with authority by the Company along with the fees prescribed for the same within a period of 30 Days from the date of change. Along with that the Amended LLP Agreement is also filed with the ROC in E-Form 3 along with the prescribed fees within a period of 30 Days only.
  • Change in Business Activity: Every LLP who wish to change the business activities of its entity is required to get the approval from the Registrar of Companies before changing the same. The Amended LLP Agreement is also filed with the ROC in E-Form 3 along with the prescribed fees within a period of 30 Days from the date of change.
  • Shifting of the Registered Office: Every LLP who wish to change the Registered Office of the Company within the same city, town or village is required to intimate the Registrar of Companies in E-Form 15 within a period of 30 Days from the date of change and also required to E-Form 3 for submitting the Amended LLP Agreement along with the prescribed fees within that period only.
  • Change in Capital Contribution of LLP: Every LLP who wish to introduce more capital in the LLP is required to amend the LLP Agreement and the same will be filed with the ROC in E-Form 3 along with the prescribed fees within a period of 30 Days from the date of change.
  • Any other changes: Any other change in the LLP Agreement done from time to time is required to be intimated to the ROC in E-Form 3 with the prescribed fees and within a period of 30 Days from the date of change.