A Limited Liability Partnership (LLP) is a popular business structure in India, combining the benefits of a partnership and a company. LLPs are required to adhere to specific compliances to ensure smooth operations and legal standing. This guide provides an overview of the mandatory compliances for LLPs in India, along with the legal requirements and necessary documents.

What is an LLP?

An LLP is a corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in a flexible, innovative, and efficient manner. It provides the benefits of limited liability while allowing its members the flexibility of organizing their internal structure as a partnership.

Importance of LLP Compliances

Adhering to LLP compliances is crucial for maintaining the legal standing of the business, avoiding penalties, and ensuring smooth operations. Non-compliance can lead to hefty fines and legal complications.

Mandatory Compliances for LLPs in India

1. Annual Return (Form 11): Every LLP is required to file an annual return in Form 11 with the Registrar of Companies (ROC) within 60 days from the end of the financial year, i.e., by May 30th each year.
2. Statement of Account & Solvency (Form 8): LLPs must maintain proper books of account and file a Statement of Account & Solvency in Form 8 with the ROC within 30 days from the end of six months of the financial year, i.e., by October 30th each year.
3. Income Tax Return: LLPs are required to file their income tax returns annually. The due date for filing the income tax return is July 31st if the LLP is not required to undergo an audit, and September 30th if an audit is required.
4. GST Return: If the LLP is registered under the Goods and Services Tax (GST), it must file GST returns as per the applicable due dates.
5. Audit Requirements: LLPs with an annual turnover exceeding ₹40 lakh or a contribution exceeding ₹25 lakh are required to get their accounts audited by a qualified Chartered Accountant.

Legal Requirements and Documents for LLP Registration

To register an LLP in India, certain legal documents are required. These documents help verify the identity and legitimacy of the business. The common documents required for LLP registration in India include:

• PAN Card: All partners must provide their PAN cards as primary ID proof.
• Address Proof: Partners can submit voter ID, passport, driver’s license, utility bills (not older than 2 months), or Aadhaar card as address proof.
• Photograph: Passport-size photographs of all partners.
• Proof of Registered Office Address: This includes the latest utility bill (not older than 2 months), rent agreement, and a no-objection certificate from the landlord if the property is rented.
• LLP Agreement: The LLP agreement must be executed and filed with the ROC within 30 days of incorporation.

Conclusion

Compliance with LLP regulations is essential for maintaining the legal standing and smooth operation of the business. By adhering to the mandatory compliances and ensuring all legal requirements are met, LLPs can avoid penalties and focus on their growth and success.For more detailed information, you can refer to the LLP Compliance Calendar and the Mandatory Compliance for LLP.