{"id":5150,"date":"2020-03-21T16:23:20","date_gmt":"2020-03-21T10:53:20","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=5150"},"modified":"2021-01-29T15:23:42","modified_gmt":"2021-01-29T09:53:42","slug":"llp-compliances","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/llp-compliances\/","title":{"rendered":"LLP Compliances \u2013 Statutory Compliance Checklist for LLP"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Running a business with all necessary compliances is equally important as registering a business, whether in the form any <a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>registered Company<\/strong><\/a> or LLP. To bring more transparency, every LLPs registered with the Ministry of Corporate Affairs are required to follow all the necessary compliances. The <strong>LLP<\/strong> compliances depend on business activity. However, it is the responsibility of the partners of an LLP to make sure that all the necessary compliances are duly complied with.<\/p>\n\n\n\n<p>In this\ntopic, we will go through various LLP Compliances, i.e. Filing of Annual\nReturn, Statements of Book of Accounts, Tax Audit, etc. that are necessarily\nrequired to comply with by the partners of the LLP.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/llp-compliances\/#What_is_LLP\" >What\nis LLP?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/llp-compliances\/#Structure_and_Key_Features_of_an_LLP\" >Structure\nand Key Features of an LLP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/llp-compliances\/#LLP_Compliance_Checklist\" >LLP\nCompliance Checklist<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/llp-compliances\/#Takeaway\" >Takeaway<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_LLP\"><\/span><strong>What\nis LLP?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>LLP stands for a Limited Liability Partnership. Limited Liability Partnership is a form of corporate business that provides the advantage of limited liability of a company and the flexibility of the Partnership. It is treated as a Separate Legal Identity. LLP is governed under the <strong>Limited Liability Partnership Act, 2008<\/strong><sup><a href=\"http:\/\/www.mca.gov.in\/MinistryV2\/llpact.html\"><strong>[1]<\/strong><\/a><\/sup>. The partners in an LLP are not liable for the unauthorized actions of the other partner, and the liability of the individual partner is restricted to his stake in the capital.<\/p>\n\n\n\n<p>Limited Liability Partnership is a combination of both a company and a partnership firm, where the partners will be treated as an agent of the LLP but on the same hand will not be bound by anything done by the partners.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-compliances-for-a-nidhi-company-overview\/\">\nCompliances for a Nidhi Company: A Complete Checklist<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Structure_and_Key_Features_of_an_LLP\"><\/span><strong>Structure\nand Key Features of an LLP<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The structure and key features of\nan LLP are-<\/em><\/strong><\/p>\n\n\n\n<ul><li>The structure of an LLP is a separate legal\nentity and enjoys perpetual succession.<\/li><li>Limited Liability Partnership Act, 2008 governs\nthe LLP.<\/li><li>To form an LLP minimum of 2 partners are\nrequired.<\/li><li>Ministry of Corporate Affairs administers the\nworking of LLP.<\/li><li>After LLP incorporation, it can deal with any\ntrade or business.<\/li><li>The partners of an LLP are treated as an agent\nbut are not liable for any liability caused by a partner.<\/li><li>The liability of the partners is limited to his\nstake in the capital except in the case of fraud and negligence.<\/li><li>The assets and liability of an LLP are separate\nfrom their partners.<\/li><li>LLP Agreement determines the rights and duties\nof the partners in an LLP. It is required to file an LLP Agreement to the ROC.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"LLP_Compliance_Checklist\"><\/span><strong>LLP\nCompliance Checklist<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Various LLP compliances are\nrequired to be fulfilled by an LLP-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Disclosure in the account about the contribution made by each partner-As per Section 32 of the LLP Act read with sub-rule (1) of Rule 23; every LLP shall disclose in their account the contribution of each of the partner along with the nature of the contribution.<\/li><li><strong>Books of Account to be preserved for a specified period-<\/strong>The Books of Account of an LLP are required to be preserved for a period of 8 years from the date on which the BOA is made.<\/li><\/ul>\n\n\n\n<p>The Books of Account shall be maintained by an LLP which relates to its affairs for each year of its existence. It can be on a cash basis or an accrual basis. The books of account shall be kept at its registered office.<\/p>\n\n\n\n<ul><li><strong>Filing of Annual Return -As per Section 35\nof the Act, <\/strong>every LLP is required to file an Annual Return <strong>(FORM-11) <\/strong>with the registrar of the LLP\nwithin 60 days from the closure of the financial year.<\/li><li><strong>Filing statement of Account and Solvency<\/strong>-Every LLP shall file <strong>Form\n8<\/strong> consist of the statement of Account and Solvency. Along with the fee,\nwithin 30 days from the end of 6 months of the financial year. <strong><\/strong><\/li><\/ul>\n\n\n\n<p>The form must be certified\nby a chartered accountant, auditor or the accountant of the company and 2\ndesignated partners must sign the form digitally.<\/p>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Form 8 consists of details related to the statement of assets and liabilities of the LLP and statement of income and expenditure of the LLP.<\/div>\n\n\n\n<ul><li><strong>Signing\nAuthority \u2013 <\/strong>Another very important LLP compliance is<strong>, <\/strong>On behalf of the Limited Liability\nPartnership, the designated partners are required to sign the Statement of\nAccount and Solvency of an LLP.<\/li><li><strong>Account\nAuditing &#8211; <\/strong>Every Limited\nLiability Partnership falling in the below- mentioned category are required to\nget their accounts audited-<\/li><li><strong>Whose\nturnover in any financial year exceeds 40 lakh rupees,<\/strong><\/li><li><strong>Whose\ncontribution exceeds 25 lakh rupees.<\/strong><\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> In case of International Transactions, an LLP can do their tax filing by 30th November. The form can be easily submitted online, and payments can be made in physical mode through banks or chosen mode of payment (E-payment).<\/div>\n\n\n\n<p>To avoid the penalties, Every LLP is required to fulfil the above-mentioned compliances on a timely basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaway\"><\/span>Takeaway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every <a href=\"https:\/\/corpbiz.io\/llp-registration\"><strong>LLP <\/strong><\/a>is required to comply with the provisions of the LLP Act 2008; in case of non-compliances LLP along with its designated partners, shall be punishable with the fine and penalties. Proper compliances result in transparency, and even an LLP who has not commenced any business would have to file the returns to avoid penalty and to maintain the compliances. <\/p>\n\n\n\n<p>For more details, get in touch with <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a>, Corpbiz offers an easy and online platform for filing LLP Compliances and other related services.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/annual-compliance-of-a-public-limited-company\/\">\nAnnual Compliance of a Public Limited Company: Rules and Procedures<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Running a business with all necessary compliances is equally important as registering a business, whether in the form any registered Company or LLP. To bring more transparency, every LLPs registered with the Ministry of Corporate Affairs are required to follow all the necessary compliances. The LLP compliances depend on business activity. However, it is the [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":5152,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[120],"tags":[413],"acf":{"service_id":"321"},"authorName":"Priyanka Bajpayee","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220303-WA0005.jpg","authorDescription":"A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.","postViews":11292,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5150"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=5150"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5150\/revisions"}],"predecessor-version":[{"id":25185,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/5150\/revisions\/25185"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/5152"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=5150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=5150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=5150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}