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LLP Compliance in India

LLP compliance refers to the adherence to the legal, regulatory, and statutory requirements essential for operating a Limited Liability Partnership (LLP) in India. It ensures that LLPs operate within the law, avoid penalties, and foster smooth business operations. Compliance is crucial to maintain good standing with government authorities, investors, and stakeholders.

Who Needs LLP Compliance?

  • All LLPs operating in India, regardless of their size or industry, must ensure compliance with applicable laws and regulations.
  • Startups, established businesses, and foreign-owned LLPs need to follow compliance protocols to remain legally sound.
  • LLPs involved in specific industries (such as finance, healthcare, and e-commerce) may have additional compliance requirements based on their sector.

Benefits of LLP Compliance

  • Avoid Legal Penalties: Compliance ensures the LLP meets all legal requirements, avoiding fines or legal actions.
  • Enhanced Reputation: Adhering to compliance standards builds trust with clients, investors, and other stakeholders.
  • Operational Efficiency: Proper compliance management ensures smooth business operations and prevents disruptions.
  • Financial Transparency: Compliance with tax and accounting regulations ensures transparency in financial reporting.
  • Risk Mitigation: Compliance reduces the risk of fraud, mismanagement, and other operational risks that could harm the LLP.

Penalty for Non-Compliance

Failure to comply with legal and regulatory requirements can result in penalties, fines, legal actions, or even suspension of the LLP’s business operations. It can also tarnish the reputation of the LLP and damage relationships with investors and stakeholders.

Documents Required for LLP Compliance

  • LLP registration certificate (e.g., LLP Agreement, Certificate of Incorporation).
  • LLP PAN card and Aadhaar card of the designated partners.
  • Financial statements, balance sheets, and tax returns.
  • Licenses and permits relevant to the business, such as GST registration, FSSAI license (if applicable), etc.
  • Partnership deed and LLP agreement, along with other corporate resolutions.
  • Documents related to statutory audits and accounting records.

Step-by-Step Process for LLP Compliance

  • Initial Assessment: Evaluate the LLP’s current legal standing and identify compliance gaps.
  • Document Collection: Gather all necessary documents, including financial, legal, and tax-related paperwork.
  • Filing & Registration: Submit compliance forms with relevant government authorities such as the Ministry of Corporate Affairs (MCA), GST department, etc.
  • Auditing & Reporting: Complete statutory audits and submit reports to the relevant bodies, such as income tax and MCA.
  • Ongoing Monitoring: Monitor compliance requirements regularly and ensure the LLP’s legal standing is up to date with the latest regulations.

Filing Lounge's Process for LLP Compliance

  • Initial Consultation: We assess your LLP’s compliance status and identify areas that require attention.
  • Document Preparation: We assist in gathering and preparing the required documents for compliance submission.
  • Application Filing: We handle the filing of all required compliance documents with the appropriate authorities.
  • Auditing Support: We facilitate the statutory auditing process and ensure all financial and legal aspects are in order.
  • Ongoing Compliance: We help maintain continuous compliance, ensuring your LLP meets all regulatory deadlines.

How Filing Lounge Can Help

Filing Lounge provides comprehensive services to ensure LLP compliance in India. We guide you through the process of staying compliant with legal, tax, and business regulations, protecting your LLP from potential risks.

  • Expert Guidance: We offer expert consultation on the compliance requirements specific to your LLP.
  • End-to-End Service: From document collection to submission and follow-up, we manage the entire compliance process for your LLP.
  • Timely Updates: We keep you informed about compliance deadlines and updates to applicable regulations.
  • Customized Solutions: Our services are tailored to meet the unique compliance needs of your LLP.

For more information, visit our LLP Compliance page.

With Filing Lounge, you can ensure that your LLP is compliant with all necessary regulations, enabling smooth operations and growth in a competitive market.

Related Guides

Documents Required For LLP Compliance

Proprietorship vs Limited Liability Partnership (LLP) vs Company

Features Proprietorship Partnership LLP Company
Definition A sole proprietorship is an unregistered business entity managed by a single individual. A legal contract between multiple parties to jointly manage and run a business operation. A business type that combines aspects of a partnership and the limited liability of a corporation. A registered business where owners and shareholders have limited liability.
Ownership
  • Single individual
  • Min 2 Partners
  • Max 50 Partners
  • Designated Partners: Min 2(No upper limit)
  • Min: 1 shareholder (for a private company), 7 shareholders (for a public company)
  • Max: 200 shareholders (for a private company), no upper limit (for a public company)
For One Person Company
  • Minimum: 1 individual
  • Maximum: 1 individual
Registration Time 7-10 working days
Promoter Liability Unlimited Liability Limited Liability
Documentation
  • Partnership Deed
  • PAN card of the partnership firm
  • LLP Agreement
  • Incorporation Certificate
  • PAN card of the LLP
  • MOA
  • AOA
  • Certificate of incorporation
  • PAN card of the company
Governance No specific governing law Governed by the terms outlined in the partnership deed Governed by the LLP agreement Governed by a formal structure including a Board of Directors
Transferability Business cannot be transferred Ownership transfer requires the consent of all partners as outlined in the partnership deed. Transferable Easily Transferable for public companies. In private companies, there might be some restrictions.
Compliance Requirements
  • Income tax filing if the turnover exceeds Rs. 2.5 lakhs.
  • Must file ITR 5
  • Must file ITR 5
  • File Form 11
  • Form 8
  • MCA filing
  • Auditor's appointment
  • File ITR 6

LLP Compliance FAQ's

Who needs to comply with LLP regulations?

All Limited Liability Partnerships (LLPs) operating in India must comply with the regulatory requirements specific to their business structure and industry.

What is the purpose of LLP compliance?

LLP compliance ensures that businesses operate in accordance with legal, financial, and operational standards, maintaining transparency and accountability in their activities.

What documents are required for LLP compliance?

Key documents include the LLP’s certificate of incorporation, PAN card, address proof, identity proof of designated partners, annual financial statements, and tax filings (including GST returns, if applicable).

Can I handle LLP compliance online?

Yes, many LLP compliance processes, including tax filings, GST returns, and annual filings, can be done online through government portals like the Ministry of Corporate Affairs (MCA) and GST portal.

Is LLP compliance mandatory for all LLPs?

Yes, all LLPs in India are required to comply with the relevant statutory and regulatory requirements under the LLP Act, Income Tax Act, GST Act, and other applicable laws.

How long does LLP compliance last?

LLP compliance is an ongoing process. Certain filings such as annual returns, financial statements, tax filings, and GST returns need to be submitted regularly, usually annually or quarterly.

What is the penalty for non-compliance?

Non-compliance can result in penalties, fines, legal actions, or even the dissolution of the LLP. The severity of the penalties depends on the nature of the non-compliance.

What are the benefits of LLP compliance?

Compliance ensures legal operation, prevents penalties, improves business reputation, and enables access to government schemes, financial assistance, and tax benefits.

Can I renew my LLP compliance filings?

Yes, annual filings like financial reports, GST filings, and income tax returns must be renewed and submitted regularly to ensure continued compliance.

What is the process for LLP compliance?

The process involves understanding the regulatory requirements for LLPs, preparing and submitting the necessary documents, filing with the relevant authorities (like MCA, GST, Income Tax), and maintaining ongoing compliance.

Can LLP compliance be transferred to a new owner?

LLP compliance obligations remain with the business entity. If ownership changes, the new partners must ensure that compliance is continued with updated details.

How can Filing Lounge help with LLP compliance?

Filing Lounge offers expert assistance in managing LLP compliance, including document preparation, filing of statutory returns, and ongoing support to ensure adherence to all relevant laws and regulations.

Related Business Registrations

In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.

FSSAI Registration
IE Code
Trademark Registration
Copyright Registration
Salaried Tax-filing
GST Return Filing

MCA Compliance

Each registered entity is required to meet its compliance duties at the close of each financial year. This generally includes auditing financial statements, filing income tax returns, and submitting annual forms to the Ministry of Corporate Affairs (MCA).

Compliance For Form Due date Penalty
Commencement of Business Intimation to Registrar for Commencement of Business Within 180 days from incorporation INR 50,000 on company and INR 1,000 per day on directors for each day of default
Annual KYC of Directors DIR 3 E-KYC 30th September of every year INR 5,000 for late filing
Appointment of Auditor Form ADT 1 Within 15 days of the AGM INR 300 per day (max INR 12,000)
Financial Statements Form AOC 4 Within 30 days from the AGM INR 100 per day of default
Annual Return Form MGT 7 Within 60 days from the AGM INR 100 per day of default

All Limited Liability Partnerships (LLP) in India must file annual returns with the Ministry of Corporate Affairs (MCA). FilingLounge provides affordable services to help you keep your LLP compliant.

LLP Compliance Form Due date Penalty
Annual KYC of Directors DIR 3 KYC 30th September of every year INR 5,000 for late filing
Annual Return Form 11 May 30th every year INR 100 per day of default
Statements of Accounts and Solvency Form 8 30th October every year INR 100 per day of default (minimum penalty INR 10,000)

In addition to the filings listed above, there may be other compliance requirements relevant to LLPs. To ensure all compliance needs of your LLP are met, please seek assistance from a Filinglounge Advisor.

Entity Compliance Form Due date
Private Limited Company Annual Return MGT-7 Within 60 days from the conclusion of the AGM
Financial Statements AOC-4 Within 30 days from the conclusion of the AGM
DIR-3 KYC DIR-3 KYC 30th September every year
Return of Deposits DPT-3 30th June every year
Appointment of Auditor ADT-1 Within 15 days from the conclusion of the AGM
Income Tax Return (Non-audit case) ITR-6 31st July every year
Income Tax Return (Audit case) ITR-6 30th September every year
Annual GST Return GSTR-9 31st December of the subsequent financial year
MSME Form Form 1 (MCA) half-yearly return by 31st October (April to September), & 30th April for the period October to March every year
Limited Liability Partnership Income Tax Return (Non-audit case) ITR 5 31st July every year
Income Tax Return (Audit case) ITR 5 30th September every year
Annual Return Form 11 30th May every year
Financial Statements Form-8 30th October every year

Note : There might be extra filings needed depending on your business type and activities. Talk to a FilingLounge advisor to get the right guidance for your company's compliance.