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Limited Liability Partnership annual returns filings and other legal requirements


Rahul Rai

2015-03-20

One of my client is a Limited Liability Partnership (LLP). Limited Liability Partnerships are different from normal partnership firms and are registered with ROC.

As far as I know, the LLP's have to comply with some rules as mention in Limited Liability Act, 2008. Every LLP regardless of sales it makes have to file certain documents with ROC.

My doubts are:

  1. What are the legal requirements that needs to be fulfilled by a LLP?
  2. Which are the forms to be filed by a LLP with ROC?
  3. Audit by a Chartered Accountant?
  4. Forms to be filed by LLP incase of change in partner or increase in capital of Partners or any other changes?

CA Pulkit Sharma

2015-03-20

A Limited Liability Partnership firm is registered with ROC and is governed by the Limited Partnership Act, 2008. Unlike regular partnerships with unlimited liability, LLP are regulated strictly and every LLP has to comply with the rules and laws applicable to it.

With reference to your specific doubts my opinions are as follow.

What are the legal requirements that needs to be fulfilled by a LLP?

A LLP needs to file the Annual returns in form 11 and accounts statement in form 8. The due date for annual statement is 30 April each year and for form 8, the due date is October 30 each year.

Other than this there are different laws related to taxation, which needs to be complied by LLP. Income tax and other laws are equally applicable to LLPs.

Which are the forms to be filed by a LLP with ROC-Annual Returns and Account statement, Insolvency statement?

The answer to this is already given in last para. You need to file form 11 and form 8.

Audit by a Chartered Accountant is compulsory in case of Limited Laibility Partnership (LLP)?

Yes, Audit is compulsory in the following situations:

  1. Capital of LLP is 25 lakhs or more, or
  2. Turnover of the LLP exceeds 40 Lakhs.

Forms to be filed by LLP incase of change in partner or increase in capital of Partners or any other changes?

You need to file form 3 in case of any changes in Partnership Agreement and if there addition or deletion of partners, you need to file Form 4 along with Form 3.

Please note that, the forms should be filed within 30 days of such changes.

The penalty for non filing of forms is Rs. 200 each day.

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CA Pulkit Sharma

2015-03-20

Update:

Audit by a Chartered Accountant is compulsory if Capital exceeds 25 lakhs.

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SANJAY KUMAR GANNA

2015-03-20

Is it a Capital in the nature of paid up capital or it includes reserves?

If Opening Capital is 26 Lakh and Closing Capital is 20 Lakh ? 

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CA Pulkit Sharma

2015-03-20

Capital in nature of paid up capital. Fixed capital is to be considered and not current account of partners. The capital as disclosed in Partnership deed needs to be considered for this.

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