A Limited Liability Partnership (LLP) is a hybrid business structure that combines the flexibility of a partnership with the limited liability feature of a company. It is registered and regulated under the Limited Liability Partnership Act, 2008 and the rules framed thereunder. Like a company, an LLP is a separate legal entity, and it is required to fulfil certain statutory obligations every year, commonly referred to as “LLP Compliance,” irrespective of whether the LLP has carried out any business activity during the year.
Annual & Event-Based Compliance for a Limited Liability Partnership under the LLP Act, 2008
A Limited Liability Partnership (LLP) is a hybrid business structure that combines the flexibility of a partnership with the limited liability feature of a company. It is registered and regulated under the Limited Liability Partnership Act, 2008 and the rules framed thereunder. Like a company, an LLP is a separate legal entity, and it is required to fulfil certain statutory obligations every year, commonly referred to as “LLP Compliance,” irrespective of whether the LLP has carried out any business activity during the year.
LLP Compliance is broadly classified into Mandatory (Annual) Compliance, which recurs every financial year regardless of turnover, and Event-Based Compliance, which arises only when certain specific events take place, such as change in partners, change of registered office, or change in the LLP Agreement.
Annual filings such as Form 11 and Form 8 must be filed by every LLP each year, even if it has not commenced business or had NIL transactions.
Compliance is governed by the LLP Act, 2008, the LLP Rules, 2009, and the Income Tax Act, 1961, and is administered by the Ministry of Corporate Affairs (MCA).
Unlike a company, an LLP is not required to conduct a statutory audit unless its annual turnover exceeds Rs. 40 Lakhs or its contribution exceeds Rs. 25 Lakhs.
Filing of income tax return (typically Form ITR-5) under the Income Tax Act, 1961 is separate from and in addition to the annual filings (Form 11 and Form 8) required under the LLP Act.
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