LLP Compliances

There are three forms of compliance for an LLP, the post incorporation compliance includes LLP PAN, bank account and the annual general compliance include minute book, auditor appointment, meetings and the mandatory compliance include annual filings.

Since LLP is a separate artificial judicial entity, after the incorporation of a Limited Liability Partnership (LLP) proper care should be taken to ensure the LLP compliances are being completed on time with the aim of avoiding substantial penalty.

Post-Incorporation Compliances

  • Filing of LLP Agreement

Every LLP in India will be required to have LLP Agreement. LLP agreement should be drafted after considering the requirements and composition of proposed LLP. After getting a certificate of incorporation, you need to file LLP Agreement in form 3 within thirty days after the date of receipt of certificate of incorporation.

  • LLP Seal

Round type rubber seal with LLP name and designation would be required for opening a bank account and applying for the PAN. The intention of impressing a seal on a document is to authenticate or attest them.

  • Letterhead

Post incorporation of LLP, stationary like letterhead, invoice etc. are required to be prepare which must include registered name and address of the LLP.

  • PAN Application for LLP

After receiving the certificate of incorporation, you can apply for the PAN card for the LLP online on the NSDL portal. Application form 49A is the same as in the case of individual and it should be duly signed by any partner of the LLP.

  • Opening a Bank Account for LLP

Bank account for an LLP is to be open in the name of the LLP. Having a bank account allows the business to undertake commercial transactions. All the required documents to open a bank account must be signed by designated partner and have LLP seal.

  • Penalty for Post-incorporation Compliance

Compliance Minimum Penalty Maximum Penalty
Filing of LLP Agreement Rs.100 per day No limit
Letterhead Rs.2000 Rs.25000

 

 

Regular Compliances

  • Maintaining financial affairs and account

This is a fundamental thing to be done where at first the books of accounts are to be maintained each year on cash or accrual basis. It should be according to the double entry system of accounting where it shall maintain the similar books of account at the registered office of the company.

  • Minute Book

A minute book is to be recorded where the meetings of the partners/managing directors/executive committee of partners are all specified.

  • Change in Partner

If there is a change in designated partner and partner (admission, resignation, cessation, death, expulsion) then it is duly filed electronically in e-form 4 within 30days of charge with fees.

  • Supplementary LLP agreement

A supplementary LLP agreement is filed within 30 days in case of any change in the admission or cessation with alter mutual rights & duties of the partners. The e-form 3 is filed for the same.

  • Change in name

Any change in the registered name of the LLP then notice should be filed electronically in form 5 to the ROC with prescribed fees.

  • Change in Registered office

Any change in the place of registered office, notice of the change should be filed electronically in form 15 to ROC (Registrar of Companies) within 30 days and such change shall take effect only upon such filing.

  • Auditor Appointment

If in case LLP has turnover exceeds Rs.40 lakhs or capital contribution exceeds Rs.25 lakhs, then only books of account required to be audited.

  • Compliance Meetings

There are three compliance of meetings of LLP as per the LLP agreement they are;

 

Nature of Meeting

Number of Meetings

First General Meeting

Within 30 days of incorporation

General Meeting

Once in a financial year

Executive Committee

Twice in a financial year

  • Penalty for Regular Compliances

​​

Compliance

Minimum Penalty Maximum Penalty
Maintaining financial affairs and accounts (For LLP) Rs.25000 Rs.500000
Maintaining financial affairs and accounts (For Partners) Rs.10000 Rs.100000
Change in Partner Rs.2000 Rs.25000
Change in Name Rs.5000 Rs.500000
Change in Registered office  Rs.10000 Rs.100000

 

Mandatory Compliances

  • Filing of Annual Return

Form LLP 11

  • Filing of Statement of the Accounts/Financial Statements

Form LLP 8

  • Filing of Income Tax Return

As LLP is a separate legal entity, every LLP incorporated in India is under an obligation to file the Income Tax Return. So, with the partner’s income tax return you have to file the separate income tax return of LLP where you have to show the LLP income and calculate the tax accordingly.

 

Income Tax Return

Last date for filing

In case of audit is not required

31 JULY

In case of audit is required

30 SEPTEMBER


Click here to Annual Return of LLP

 
100% Online
 
No Hidden Charges
 
Track Your Order