Varsha Nayyar
Quick Summary
What is an LLP? Limited liability partnership is a body corporate and legal entity separate from its partners. LLP has fewer compliances as compared to registered companies. In this article, we are going to discuss Registration process Admission/Cessation of Partner Compliances to be
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FAQ :
To register an LLP, you first reserve a name using Form RUN-LLP or FiLLiP. Next, you file the main incorporation form, FiLLiP, which requires the Designated Partner's DSC and relevant documents. Finally, within 30 days of incorporation, you must file Form 3 with the LLP Agreement.
To add a new partner, all existing partners must consent. A Supplementary Deed to the original LLP Agreement needs to be prepared. After admission, Form 4 must be filed within 30 days of the partner joining.
Mandatory compliances include filing the Annual Return (Form 11) within 60 days of the financial year-end, and the Statement of Account & Solvency (Form 8) within 30 days of the end of the six-month period. LLPs must also maintain books of accounts and file their Income Tax Return (ITR-5) annually.
An LLP is required to get its accounts audited if its turnover exceeds 40 lakh rupees or its contribution exceeds 25 lakh rupees in any financial year. The audit must be conducted by a Chartered Accountant in Practice.
If there is a delay in filing Forms 8 and 11 of the LLP, a penalty of Rs. 100 per day of default is applicable.
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