Compliance requirement of Limited Liability Partnership and Consequences of non-compliance

[2021] 132 taxmann.com 233 (Article), Dated 24-11-2021

Limited Liability Partnership

1. Limited liability partnership (LLP) registration is administered by the Ministry of Corporate Affairs, Government of India, through the office of the Registrar of Companies. The incorporation/registration process is fully electronic, similar to the limited liability partnership registration process, i.e. applications and documents are filed online and the Registrar of Companies issues a digitally signed Certificate of Incorporation.

The limited liability partnership is governed by Limited Liability Partnership Act, 2008 and Limited Liability Partnership Rules, 2009. Limited Liability Partnership Rules, 2009 contains administrative provisions for formation, management, reconstruction and winding up of limited liability partnerships. Central Government has the authority to make applicable any provision of Companies Act 2013 to limited liability partnerships with suitable medications by issuing a notification.

Compliance Requirements

2. Compared to a company, the legal compliance requirements are much lesser for a limited liability partnership. For a company, it is mandatory to maintain various registers, minutes, etc., but there is no such requirement for a limited liability partnership. Nevertheless, there are compliances which are of annual nature, even based nature and these compliances are to be complied with by the limited liability partnership. We would like to examine the compliance requirements in the forthcoming paragraphs.

Click Here To Read The Full Article

Check out Taxmann's LLP Ready Reckoner | Subject-wise Practical Guide to LLP Act (as amended by LLP (Amdt.) Act 2021) and the LLP Rules.