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Llp charge created to be registered or not ? reply urgent

Mitul Shah (Article Assistant) (34 Points)

27 February 2012

A LLP is Registered under LLP act Duly.

A CHARGE has been created against it asset , does it need to register the same with MCA or any other authority ?

& registration of CHARGE by LLP is governed by which Section or Rule of LLP act ?

Experts Please throw your light on the same.

Reply Urgent.

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9 Replies

Aswathy (CS) (175 Points)
Replied 30 March 2012

I think there is no provision for registeration of charge in LLP Act.

Experts pls help

jayant (PO) (21 Points)
Replied 09 July 2012

charges in respect of LLP needs to be registered through LLP Form 8 (Appendix to statement of Account and Insolvency).

suman gupta (Student CA Final ) (32 Points)
Replied 26 February 2016

is charge 1 creation is possible in llp if yes then charge-1 form will be uploaded please let me knw

ANMOL BHARDWAJ (CA FINAL STUDENT) (21 Points)
Replied 07 July 2016

Yes, it needs to be filed/created through Form 8 for LLP.. While filing form 8 there are 2 options available in the beginning:-

(i) Annual (ii) Interim ..

On selecting the interim option, the form is modified for 'Creation or Modification of Charge'... Thus, from there, Charge can be registered for n LLP.. Also, it should be noted that while filing the Annual return in Form 8 (The due date for which is 30th October, following the financial year for which the annual return is being filed), the LLP needs to disclose all the charges created and registered, which ,if registered, will pick up/prefill automatically..

I hope this was helpful!!

Thank You!!

Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 11 July 2016

Filing for registration of Charge is optional in case of LLP. Please check the provisions.

Jaswant Varma (Student) (22 Points)
Replied 03 September 2016

Hello Pratik Sir,

Will you please tell which section governs the registration of charge in case of LLP. so that it brings more clarity as to whether the registration of charge is optional or mandatory.

Please.

Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 03 September 2016

LLP Act does not have any provisions which governs Creation, Modificaion of Charge. And that is the main reason, registration of charge is not mandatory. However, voluntarily, LLP can submit details about creation or modification of Charge in Form 8.

Kindly check Question number 25 of LLP FAQs given by MCA (link given below).

https://www.mca.gov.in/MinistryV2/llpefiling.H T M L

2 Like

Jaswant Varma (Student) (22 Points)
Replied 03 September 2016

Thanks for the timely response Sir.

Divya jain (31 Points)
Replied 05 January 2023

Income Tax Audit for Filing LLP Annual Return is mandatory for the companies to file the income tax return above turnover of one crore income annually.