Compliance for LLP (Limited Liability Partnership)

Before diving into the LLP compliance checklist, it’s essential to understand the nature of a Limited Liability Partnership (LLP). An LLP is a hybrid business structure that combines the flexibility of a partnership with the benefits of limited liability. It is ideal for small and medium-sized businesses, allowing partners to share responsibilities while safeguarding personal assets from business liabilities.

However, to maintain its legal status and operational integrity, an LLP must adhere to several LLP compliance requirements set by regulatory authorities, including the Government of India.

Benefits of Compliance for LLP

Compliance ensures that the LLP is recognized as a separate legal entity, distinct from its partners, thereby fostering trust and credibility among stakeholders.

Partners in an LLP enjoy limited liability, meaning their personal assets remain protected from the company’s debts and obligations, reducing personal financial risks.

Regular LLP statutory compliance enhances the firm’s reputation, making it easier to secure funding and attract investors. It reflects professionalism and builds trust with clients, investors, and creditors.

Timely compliance ensures the LLP avoids penalties, legal disputes, and potential dissolution due to non-compliance.

Eligibility for LLP Compliance

The LLP must be registered.

If the LLP’s turnover exceeds ₹40 lakhs or its capital contribution exceeds ₹25 lakhs, additional compliance requirements come into play.

Any two or more persons can become partners.

LLP Compliance Checklist and Process

Step 1

Prepare Financial Statements

These include the balance sheet, profit and loss account, and cash flow statement, which must adhere to Indian accounting standards to reflect the LLP’s financial health accurately.

Step 2

Form 11 (Annual Return)

This must be filed within 60 days after the end of the financial year. It includes details about the partners and their contributions. Form 11 is a critical part of LLP ROC compliance.

Step 3

Form 8 (Statement of Accounts and Solvency)

This form, which includes the LLP’s financial statements and solvency status, must be filed within 30 days after the end of the financial year.

Step 4

Submit Forms to ROC

Both Form 11 and Form 8 must be submitted to the Registrar of Companies (ROC) via the MCA portal to ensure all filings are completed within the prescribed timelines.

LLP Compliance Checklist and Process

Financial statements

Form 11 and Form 8

The Partnership Deed

Audit report (if applicable)

Documents Required for LLP Compliance in India

Who governs LLPs in India?

LLPs are governed by the Limited Liability Partnership Act, 2008, under the Ministry of Corporate Affairs.

What are the benefits of forming an LLP?

Benefits include limited liability, legal recognition, management flexibility, and easier access to funding.

What compliance is required for LLPs?

LLPs must file annual returns, maintain financial statements, and periodically undergo audits as part of their annual compliance obligations.

What is Form 11?

Form 11 is the annual return for LLPs, containing details of partner contributions and other business information.

What is Form 8?

Form 8 is a statement of accounts and solvency, reporting the LLP’s financial performance.

What documents are required for annual filing?

The documents required for annual filing include financial statements, Form 11, Form 8, and the partnership deed.

What is the penalty for late filing?

Penalties for late filing are determined by the duration of the delay and can range from additional fees to fines imposed by the Registrar of Companies (ROC).

Is it necessary to hire a professional for compliance?

While hiring a professional is not mandatory, it can help minimize errors and ensure all legal requirements are met efficiently.

Can I convert my partnership into an LLP?

Yes, partnerships can be converted into LLPs under the provisions of the LLP Act.

Can I form an LLP with foreign partners?

Yes, foreign partners are allowed in an LLP, provided they comply with the LLP Act.

Pricing and Packages

Silver

₹24,999 / Month

Appointment of Auditor
Issuance of share certificate
INC 20 A form filing
DIR 3 KYC (For 2 directors)
Accounting & Bookeeping(Upto 100 transactions)
Financial statement preparation
Accounting software (1-year license)
AOC 4, MGT 7 & ADT 1 filing
Annual filing(Upto turnover of 20 lakhs)
Facilitation of Annual General Meeting
Statutory regulations PF, ESI
One Year Income Tax filing(Upto turnover of 20 lakhs)

Gold

₹34,999 / Month

Appointment of Auditor
Issuance of share certificate
INC 20 A form filing
DIR 3 KYC (For 2 directors)
Accounting & Bookeeping(Upto 100 transactions)
Financial statement preparation
Accounting software (1-year license)
AOC 4, MGT 7 & ADT 1 filing
Annual filing(Upto turnover of 20 lakhs)
Facilitation of Annual General Meeting
Statutory regulations PF, ESI
One Year Income Tax filing(Upto turnover of 20 lakhs)
Preparation of Minutes & Filing of AGM Report
GST Returns Filings (12 Months)
Dedicated account manager
Consultation with CA, CS & Lawyer

Platinum

₹49,999 / Month

Appointment of Auditor
Issuance of share certificate
INC 20 A form filing
DIR 3 KYC (For 2 directors)
Accounting & Bookeeping(Upto 100 transactions)
Financial statement preparation
Accounting software (1-year license)
AOC 4, MGT 7 & ADT 1 filing
Annual filing(Upto turnover of 20 lakhs)
Facilitation of Annual General Meeting
Statutory regulations PF, ESI
One Year Income Tax filing(Upto turnover of 20 lakhs)
Preparation of Minutes & Filing of AGM Report
GST Returns Filings (12 Months)
Dedicated account manager
Consultation with CA, CS & Lawyer
TDS filing for 1 year
Payroll service (Up to 5 employees)