📘 Definition of LLP (Limited Liability Partnership)
A Limited Liability Partnership (LLP) is a hybrid form of business entity that combines the benefits of a partnership and a company.
According to the Limited Liability Partnership Act, 2008 (India):
“A Limited Liability Partnership is a body corporate formed and incorporated under this Act and is a legal entity separate from its partners.”
— Section 3(1) of the LLP Act, 2008
✅ Key Features of an LLP:
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Separate Legal Entity: LLP is distinct from its partners.
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Limited Liability: Partners are liable only to the extent of their agreed contribution.
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Perpetual Succession: Continues to exist despite changes in partners.
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No Minimum Capital Requirement: Can be started with any amount of capital.
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Flexible Management: Governed by an LLP Agreement, which allows flexibility in operations.
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Fewer Compliance Requirements: Compared to a private limited company.
🧑🤝🧑 Partners in an LLP
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Must have at least 2 designated partners, one of whom must be a resident in India.
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No maximum limit on the number of partners.
Limited Liability Partnerships (LLPs) in India are required to comply with specific annual filing requirements under the Limited Liability Partnership Act, 2008 and rules made thereunder. Here’s a concise overview of the LLP annual compliance filing requirements:
✅ Mandatory Annual Compliance for LLPs
1. Form 11: Annual Return
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Due Date: 30th May of each financial year.
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What it contains: Details of all partners, contributions, and any changes during the year.
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Applicability: Mandatory for all LLPs, irrespective of turnover or activity.
2. Form 8: Statement of Account & Solvency
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Due Date: 30th October of each financial year.
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What it contains: Financial position, statement of assets and liabilities, income and expenditure, and solvency declaration.
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Requirement: Must be signed by two designated partners and certified by a chartered accountant.
3. Income Tax Return (ITR) Filing
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Due Date:
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31st July if audit is not required.
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30th October if audit is required.
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Applicability: All LLPs must file an ITR, even if there is no income.
4. Audit Requirement
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When mandatory: If turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh.
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Must get accounts audited by a Chartered Accountant.
🔍 Other Compliances (if applicable)
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DIR-3 KYC for designated partners (due 30th September).
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GST returns if LLP is registered under GST.
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TDS returns if applicable.
📌 Consequences of Non-Compliance
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Late filing fees of ₹100 per day per form (no cap).
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Additional penalties under the Act.
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Disqualification of designated partners in severe cases.
