Limited Liability Partnership Firm
LLP refers to Limited liability partnership and is governed by the Limited Liability Partnership Act 2008. Limited Liability partnership provides the advantage of limited liability to its owners and at the same time requires minimal maintenance. The directors of any private limited company have limited liability to creditors. In case of default, banks/creditors can only sell the company’s assets and not the personal assets of directors.
  • Easy to Form.
  • No minimum capital requirement.
  • No limit on owners of business.
  • Lower Registration Cost.
  • LLP has perpetual succession and contains salient features of Company and Partnership.
What does it includes ?
  • Digital signature certificate of 2 partners.
  • Director Identification Number of 2 partners.
  • Partnership Deed.
  • GST.
  • PAN & TAN of LLP.
  • Certificate of Incorporation
Documents Required to Register LLP
Documents of Partners
Documents of LLP
PAN Card/ ID Proof of the Partners
Proof of Registered Office Address
Address Proof of the partners
Digital Signature Certificate
Residence Proof of Partners
Passport (in case of Foreign Nationals/ NRIs)
Mandatory Compliance of Limited Liability Partnership Firm
  • Income Tax Fillings : Every LLP has to mandatorily file income Tax return.
  • GST Fillings : A LLP registered under GST has to mandatorily file GST returns monthly, quarterly, annually.
  • TDS Fillings : A LLP who has TAN must quarterly file TDS returns and issue TDS certificates to the person whose TDS has been deducted.
  • Professional Tax Returns : A LLP who has employed even a single employee whose salary is above the prescribed limit is required to deduct PT and file its returns.
  • EPF and ESIC Returns : A LLP who has registered with ESIC and EPF has to mandatorily file returns.
  • Accounting : Books of Accounts are required to be maintained if the income from Business or Profession exceeds Rs. 1,50,000/- or the Total Sales / Turnover / Gross receipts exceeds Rs. 2,50,000/-
  • Audit : If the turnover of the LLP exceeds the Prescribed Limits he is required to get his books of Accounts Audit from an Chartered Accountant.
  • ROC Compliance : LLP need to file their annual returns ( Form 11 ) to ROC within 60 days from the end of the Financial year and statement of accounts and solvency (Form 8 ) within 30 days from the end of 6 months of the Financial year.
Documents Required For Annual Compliances For LLP
  • Invoices of purchases & sales during a financial year
  • Invoices of expenses incurred during a financial year
  • Bank statements for all bank accounts in the name of LLP in a financial year.
  • Credit card statements for expenses incurred by partners on behalf of LLP.
  • Copy of GST return file (if any)
  • Copy of TDS challans deposited
  • Copy of TDS return filed
Procedure For Annual Compliance Fulfillment
  • Maintain proper books of accounts
  • Preparation & filing of balance sheet
  • Get your accounts certified by CA If your turnover is above ₹40 Lakhs
  • Filing of form 8 and form 11 with registrar of companies (ROC)
  • Filing of income tax return to the income tax department.
Penalty For Non-Compliance
  • Late filing or non-filing of LLP annual return or statement of accounts & solvency before the due date will attract a penalty of Rs 100 per day.
  • LLP cannot be closed without filing of the tax return.
  • LLP penalty doesn't have a maximum Imit. It can be of any amount.
  • Therefore it is best that you file your LLP annual returns or statement of accounts & solvency in time to avoid heavy penalty
  • Filing of income tax return to the income tax department.

Non-compliance will leads to heavy penalty of minimum ₹25000 and maximum ₹5 Lakhs in case of LLP which is much more than in comparison to private limited company i.e. ₹1 Lakh. Fine of minimum ₹10000 is also charged from every partner of LLP separately which may extend to maximum of ₹100000

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