Understanding LLP Compliance

A Limited Liability Partnership (LLP) combines the flexibility of a partnership with the limited liability of a company. Unlike traditional partnerships, LLPs protect partners from personal liability beyond their capital contributions.

While LLPs have fewer compliances than companies, they must still fulfill regulatory requirements set by the Registrar of Companies (ROC) under the Ministry of Corporate Affairs (MCA).

At Calzone, we specialize in LLP ROC and non-ROC compliance services, ensuring 100% legal adherence and hassle-free filings.

Why LLP ROC Compliance Matters?

A Designated Partner has specific legal and administrative responsibilities in an LLP, including:

• Avoid Hefty Penalties - Failure to file ROC forms on time attracts a penalty of ₹100 per day per form, accumulating indefinitely.
• Maintain Legal Standing - Non-compliance can lead to LLP disqualification or legal action.
• Ensure Financial Transparency - Proper compliance ensures a clear financial record, making it easier to secure loans or attract investors.

Calzone ensures full compliance, protecting your LLP from penalties and legal risks.

LLP ROC Compliance Checklist

• Filing LLP Agreement - Form 3
  • Timeline: Within 30 days of LLP incorporation.
  • Details Required:
  • LLP Agreement outlining roles, responsibilities, and profit-sharing ratio.
  • Must be executed and notarized by all partners.
  • Late Filing Penalty: ₹100 per day.
• Filing Annual Return - Form 11
  • Timeline: By May 30th each year.
  • Details Required:
  • Basic LLP details (partners, capital contribution, business activities).
  • Any penalty notices or compounding of offenses received during the year.
  • Late Filing Penalty: ₹100 per day.
• Filing Statement of Accounts & Solvency - Form 8
  • Timeline: By October 30th each year.
  • Details Required:
  • Declaration of turnover (above or below ₹40 lakh).
  • Statement confirming charge creation, modification, or satisfaction.
  • Partners confirmation on record-keeping and financial responsibility.
  • Late Filing Penalty: ₹100 per day.
• Audit Requirement for LLPs
  • Mandatory Audit if:
  • Turnover exceeds ₹40 lakh OR
  • Capital contribution exceeds ₹25 lakh.

LLPs below these thresholds can opt for self-declaration in Form 8, confirming that the partners have maintained proper books of accounts.

Calzone handles all ROC filings, ensuring timely submissions to avoid penalties

Non-ROC Compliance for LLPs

In addition to ROC filings, LLPs must also comply with income tax, GST, and other regulatory laws.

• Income Tax Return (ITR) Filing

  Due Date: July 31st (For non-audited LLPs) | September 30th (For audited LLPs).

  Threshold for Mandatory Audit:

  • Business turnover exceeding ₹1 crore.
  • Professional receipts exceeding ₹50 lakh.

  Other Tax Obligations:

  • TDS/TCS compliance.
  • Advance Tax Payments.
  • Alternate Minimum Tax (AMT) compliance.
• GST Compliance (If Registered under GST Act)

  Regular GST Filings:

  • GSTR-1 - Monthly/Quarterly sales return.
  • GSTR-3B - Monthly summary return.
  • Annual GST Return (GSTR-9) - Mandatory for turnover exceeding ₹2 crore.
• Compliance with Other Laws (If Applicable)
  • If the LLP is engaged in specific business activities like import/export, finance, or professional services, it may need additional licenses or filings.

Calzone ensures full tax compliance, from ITR to GST filings, keeping your LLP tax-ready.

Consequences of Non-Compliance

Missing LLP ROC filings leads to:

• ₹100 per day penalty per form (Form 8 & Form 11).
• LLP partners facing legal action or disqualification.
• LLP status marked as 'defaulting' affecting credibility.
• Possible dissolution of the LLP by the ROC.

Calzone ensures your LLP stays compliant, preventing unnecessary penalties.

How Calzone Helps with LLP Compliance?

Need help with LLP ROC compliance? Contact Calzone today for expert assistance!

Frequently Asked Questions (FAQs)