Legal Compliance after Registering LLP in India

What are the Legal Compliance after the Register LLP in India?

As per Limited Liability Partnership (LLP) Act, 2008 and LLP Rules some Legal Compliance need to be followed after the registration of LLP firm in India.

 1. Financial affairs and file accounts need to be maintained

• All the financial records need to be maintained as per double entry system of accounting whether in cash or accrual basis at the registered office of the company.
• If partner contribution exceeds 25 lakhs and total turnover exceeds 40 lakhs then an auditor is required to maintain book of accounts.

2. Minute books

• Minutes should be prepared to maintain records of all the meetings held between partners and committee of partners.

3. Change in partners

• If any change in the structure of partners takes place then within 30 days of that change along with fees it should be intimated.

4. Annual Return

• Annual return should be paid within, 60 days from the financial year. Its due date is 30th
• Rupee 100 need to be paid for per day default in payment (as a penalty)
• Returns need to be paid with ROC in e-Form 11.

5. Annual Statement Of Accounts and Solvency

• This is paid on annual basis, from 30 days from the expiry of 6 month from end of each financial year, i.e. 30th
• Annual returns need to be paid in e-Form 8.

6. Supplementary LLP Agreement

• It governs the rights and duties of the partners and it should be filed to ministers of cooperate affairs within 30 days of incorporation of LLP. Failing to do so will caste upon a fine of rupee 100 per day with no ceiling on its maximum fine.

7. Income Tax Return

• If LLP is carried on business and the overall turnover exceeds 1 Crore then tax audit is applicable and need to be paid within 30th
• If LLP is carried on business and the overall turnover doesn’t exceeds 1 Crore then audit is not applicable and need to be paid within 30th
• If LLP is carried on profession and the total receipts are more than 25 lakhs then audit is applicable and need to be paid within 30th
• If LLP is carried on profession and the total receipts is not more than 25 lakhs then audit is not applicable and need to be paid within 30th

8. Meetings of LLP

• First general meeting should be done within 30 days of formation of LLP.
• At least one general meeting need to be held within one financial year.
• Executive committee need to hold two meetings in one financial year.

Author: This blog is written by  Ms. Ankana Mukherjee, a passionate blogger & intern at  Aapka Consultant.

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