Post Incorporation Compliance for LLP

As per the LLP Act 2008 and LLP Rules, every Limited Liability Partnership(LLP) registered with the MCA(Ministry of Corporate Affairs) needs to fulfill certain statutory Compliance after its Incorporation.

The detailed list of Compliance for an LLP is given below:

1. Financial Accounts:

This is the fundamental need after the incorporation of an LLP, which includes maintaining financial affairs and file accounts.

  • To maintain the proper books of account relevant to its affairs on cash or accrual basis.
  • The Accounting should be done according to the double entry system of Accounting.
  • The same needs to be done at the registered office of the LLP.
  • The LLP also needs to appoint an Auditor who would audit the accounts after the incorporation.

2. Annual Returns by the LLP:

There are certain returns and records required by the LLP and they are as follows;

3. Compliance Meetings:

Unlike Private Limited Company, an LLP doesn't need to have an Annual General Meeting, first General Meeting. It only needs to have one General Meeting and two executive meetings every financial year.

  • LLP must maintain proper Books of Account.
  • The Minute Book is another document that needs to be maintained in which the minutes of meetings of the partners and the managing executives committee are recorded.
  • Admission, resignation, cessation, resignation, expulsion or death of any partner needs to be noted. An E-Form 4 is filed electronically within 30 days after any change in the partner/designated partner. The prescribed fees are to be paid as well.
  • With the change in the Partners/designated partner, there might be a change in the LLP Agreement which is further filed under E-form 3. This will include the supplementary LLP Agreement and needs to be done within 30 days after the change.
  • An E-form 8 is filed which records the Statement of Account and Solvency(SAS). This needs to be filed every financial year and 30 days prior the expiry date along with the prescribed fees.
  • 60 days before the closure of the Financial year the Annual Return with RoC is filed in E-Form 11.
  • The above-mentioned documents are all available for the Public Inspection except the LLP Agreement form. (Late filing of the Returns leads to a hefty penalty may be of Rs. 100 per day.)

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