Annual Compliance Calendar for your LLP Firm Business

Annual Compliance Calendar for your LLP Firm Business. Limited Liability Partnership (LLP) is a form of business structure that combines the features of a traditional partnership and a limited liability concept to the extent of Capital contribution done by each partner in LLP, governed by the provisions of the Limited Liability Partnership Act, 2008.
LLP shall open a bank account in its name, and there are post incorporation requirements that shall be fulfilled subsequent to incorporation. Ministry of Corporate Affairs (MCA) issued a notification on March 4, 2022, to introduce the amendments to the existing Limited Liability Partnership Rules, 2009 and Limited Liability Partnership Act, 2008, primary objective of these amendments is to enhance the real-time capture of information and promote ease of doing business for limited liability partnerships (LLPs).

Let’s have a look at the list of compliances that an LLP needs to follow-
Annual Mandatory Compliances:

e-forms

Particular

Timeline

Form-3

The Partners of an LLP are required to execute an LLP Agreement and a copy has to be filed with the ROC per Section 23 of the Act.

within 30 days of incorporation (One time compliance)

Form-8

Statement Of Account & Solvency shall be filed every year under Section 34(3) within a period of thirty days from the end of six months of the financial year.

30th October

Form-11

Annual Return shall be filed within 60 days of closer of financial year

30th May

Audit of Accounts

Only when the annual turnover exceeds INR 40 lakhs or contribution exceeds INR 25 lakhs.

30th October

Audit of Accounts not required

If the annual turnover is less than 40 lakhs or contribution is less than 25 lakhs.

Income tax return(Tax Audit Not applicable)

Every LLP has to file Income Tax Returns every year, per Section 44AB.

31st July every year

Income tax return(Tax Audit applicable)

LLPs under tax audit shall file Income tax returns every year. A tax audit implies that an LLP is carrying any business and sales exceed 1 crore, or LLP is carrying profession and gross receipts exceed 50 lakhs.

30th September.

DIR 3 KYC-(DPIN KYC)

Each designated partner for an LLP is required to file form DIR 3 KYC

on/before September 30 of each financial year.

Other Statutory compliance requirements for the maintenance of Records and returns by LLP:-

Maintain proper Books of Account.

Minutes Book to record minutes of meetings of partners and managing/ executive Committee of partners.

Form 3 for file supplementary LLP Agreement within 30 days of change.

Form 4 for notifying any Change in details of Partners (admission, resignation, cessation, death, expulsion) within 30 days of change.

Form 5 for notice of change within 30 days of receiving MCA name approval and confirming the availability of the name with ROC.

Form 6 for Intimation of Particulars of Name and Address of a partner/change to Such Particulars by a Partner to the LLP.

Form 9 for Consent by Designated Partners, pursuant to Section 7(3) to the Limited Liability Partnership Act, 2008, and Rule 7 of the Limited Liability Partnership Rules, 2009.

Form 12 for intimating change in communication address for service of documents.

Form 15 for Change in the Registered Office within 30 days of change.

Non-compliance of any of the mandatory requirements may lead to hefty penalties. 
Limited Liability Partnership (Second Amendment) Rules, 2022
LLP (Amendment) Act, 2022, was enacted to introduce certain changes and improvements to the existing LLP Act, 2008, with the aim of facilitating law-abiding businesses and streamlining processes.

Decriminalization: The bill seeks to decriminalize certain provisions of the LLP Act, 2008, meaning that non-compliance with those provisions would no longer be treated as a criminal offense. This change aims to reduce the burden on businesses and promote ease of doing business.

Adjudicating officers and special courts: The bill provides for the appointment of adjudicating officers and special courts to handle matters related to limited liability partnerships. This step aims to expedite dispute resolution and improve the efficiency of legal proceedings.

Formation of Small Limited Liability Partnerships: The bill introduces the concept of a Small Limited Liability Partnership, which is likely aimed at providing a simpler and more flexible structure for smaller businesses. Specific details regarding the formation and functioning of Small LLPs would be outlined in the bill or accompanying rules.

Introduction of new forms: The LLP (Amendment) Rules incorporate two new forms, Form 16A and Form 33 LLP. These forms likely serve specific purposes related to compliance, reporting, or other requirements under the LLP Act.

Revised fee norms: The LLP (Amendment) Rules also include revised fee norms for Limited Liability Partnerships. These fee revisions might relate to various aspects such as registration, filing of documents, or any other services provided by the government related to LLPs.

Some key provisions 
Limited Liability Partnership (Second Amendment) Rules, 2022

There can be five Designated Partners (without having DPIN) (earlier it was 2)

Streamlining LLP incorporation process (FiLLiP form is now web-based like SPICe+)

PAN and TAN are allotted along with the Certificate of Incorporation itself.

All LLP forms are web-based, eg: Form 9 for filing Consent of Partners.

Form-8 (Statement of Solvency and Annual Return) will also include disclosures concerning Contingent Liability.

Statement of Account and Solvency shall be signed on behalf of the LLP by an Interim Resolution Professional (IRP) or LLP Administrator. This applies where Corporate Insolvency Resolution Process (CIRP) has been initiated against the limited liability partnership under the IBC, 2016 or LLP Act, 2008

FAQ’s

What Documents Required for availing DPIN for LLP Partners ?

To obtain a Designated Partner Identification Number (DPIN), the following documents are typically required:
Applicant's Photo:
A recent passport-sized photograph of the individual applying for the DPIN.
Applicant Identity Proof (duly attested):
A valid identity proof document that establishes the applicant's identity, document needs to be attested by a gazetted officer, notary, or practicing chartered accountant/company secretary/cost accountant. Acceptable identity proof documents may include:-
- PAN Card:Mandatory, Permanent Account Number (PAN) card issued by the Income Tax Department. In some cases, a self-attested copy may be accepted.
- Passport: A valid passport as an identity proof document, particularly for foreign nationals.
Applicant Address Proof (duly attested):
A document that serves as proof of the applicant's residential address. This document should also be duly attested by a gazetted officer, notary, or practicing chartered accountant/company secretary/cost accountant. Acceptable address proof documents may include:
- Aadhaar Card: The Aadhaar card is issued by the Unique Identification Authority of India (UIDAI).
- Voter ID Card: Voter Identification Card issued by the Election Commission of India.
- Driving License: Valid driving license issued by the regional transport office.
- Utility Bills not older than two months: Recent utility bills (electricity bill, water bill, gas bill, etc.) in the applicant's name.
- Bank Statement not older than two months: A recent bank statement showing the applicant's address.
Details Particulars: 
Email ID, Phone No., Place of Birth, Educational Qualification, Date of Birth, Nationality, Citizenship, etc.

What is an LLP Concepts ?

A Limited Liability Partnership (LLP) is a unique type of business entity that combines the advantages of limited liability offered by a company with the flexibility of a partnership.

One of the key features of an LLP is that it can continue its operations regardless of any changes in its partners. It has the ability to enter into contracts and own property in its own name.

As a separate legal entity, the LLP is fully liable for its obligations, but the liability of individual partners is limited to their agreed contribution to the LLP.

Importantly, no partner is held accountable for the unauthorized actions or decisions of other partners. This means that each partner is protected from being jointly liable for the wrongful business choices or misconduct of another partner.

The rights and responsibilities of the partners within an LLP are governed by an agreement either between the partners themselves or between the partners and the LLP, depending on the circumstances.

While the LLP enjoys the benefits of limited liability, it still remains liable for its other obligations as a separate legal entity.

Due to its blend of corporate and partnership characteristics, an LLP is often described as a hybrid between a company and a partnership.

How LLP Different from the Company ?

The main differences between a Limited Liability Partnership (LLP) and a company are:-

Governance: A company's internal governance is regulated by statutory laws, while an LLP's governance is determined by a contractual agreement between partners.

Management-ownership divide: In a company, there is a separation between management and ownership, whereas in an LLP, the partners are both owners and managers.

Flexibility: LLPs offer more flexibility in terms of defining roles, responsibilities, profit-sharing, and decision-making processes through the partnership agreement including Company Can be easily converted into the LLP.

Compliance requirements: LLPs generally have fewer compliance obligations compared to companies, reducing administrative complexity and costs.

Conclusion:
Compliance holds significant importance for a Limited Liability Partnership (LLP) as it serves several crucial purposes.
Firstly, compliance ensures that the LLP operates within the legal framework and fulfills its obligations under applicable laws and regulations, Non-compliance can lead to severe penalties, fines, or legal consequences that can negatively impact the LLP's operations and reputation.Secondly, compliance plays a vital role in protecting the limited liability status of the partners. By adhering to compliance requirements, partners can shield their personal assets from being held accountable for the liabilities and debts of the LLP, This is a fundamental advantage of the LLP structure, and maintaining compliance safeguards this protection.Furthermore, compliance fosters good governance practices within the LLP, establishes transparency, accountability, and ethical conduct, which are essential for the smooth functioning and long-term sustainability of the business. Compliance frameworks help set guidelines for decision-making processes, financial management, and reporting, ensuring that the interests of all stakeholders are considered and protected.Financial management is another aspect where compliance plays a crucial role, Proper compliance necessitates the maintenance of accurate financial records, conducting regular audits, and filing timely financial statements, promotes effective financial management, enables informed decision-making, and enhances trust among investors, lenders, and other stakeholders. Moreover, compliance contributes to building investor confidence. Compliant LLPs demonstrate a commitment to integrity, reliability, and responsible business practices, inspires trust among potential investors and partners, enhancing the LLP's credibility and attracting investment opportunities.

Limited Liability Partnership (LLP) is a form of business structure that combines the features of a traditional partnership and a limited liability concept to the extent of Capital contribution done by each partner in LLP, governed by the provisions of the Limited Liability Partnership Act, 2008.

LLP shall open a bank account in its name, and there are post incorporation requirements that shall be fulfilled subsequent to incorporation. Ministry of Corporate Affairs (MCA) issued a notification on March 4, 2022, to introduce the amendments to the existing Limited Liability Partnership Rules, 2009 and Limited Liability Partnership Act, 2008, primary objective of these amendments is to enhance the real-time capture of information and promote ease of doing business for limited liability partnerships (LLPs).

Let’s have a look at the list of compliances that an LLP needs to follow-

Annual Mandatory Compliances:

e-forms	Particular	Timeline
Form-3	The Partners of an LLP are required to execute an LLP Agreement and a copy has to be filed with the ROC per Section 23 of the Act.	within 30 days of incorporation (One time compliance)
Form-8	Statement Of Account & Solvency shall be filed every year under Section 34(3) within a period of thirty days from the end of six months of the financial year.	30th October
Form-11	Annual Return shall be filed within 60 days of closer of financial year	30th May
Audit of Accounts	Only when the annual turnover exceeds INR 40 lakhs or contribution exceeds INR 25 lakhs.	30th October
Audit of Accounts not required	If the annual turnover is less than 40 lakhs or contribution is less than 25 lakhs.	-
Income tax return(Tax Audit Not applicable)	Every LLP has to file Income Tax Returns every year, per Section 44AB.	31st July every year
Income tax return(Tax Audit applicable)	LLPs under tax audit shall file Income tax returns every year. A tax audit implies that an LLP is carrying any business and sales exceed 1 crore, or LLP is carrying profession and gross receipts exceed 50 lakhs.	30th September.
DIR 3 KYC-(DPIN KYC)	Each designated partner for an LLP is required to file form DIR 3 KYC	on/before September 30 of each financial year.

Other Statutory compliance requirements for the maintenance of Records and returns by LLP:-

Maintain proper Books of Account.
Minutes Book to record minutes of meetings of partners and managing/ executive Committee of partners.
Form 3 for file supplementary LLP Agreement within 30 days of change.
Form 4 for notifying any Change in details of Partners (admission, resignation, cessation, death, expulsion) within 30 days of change.
Form 5 for notice of change within 30 days of receiving MCA name approval and confirming the availability of the name with ROC.
Form 6 for Intimation of Particulars of Name and Address of a partner/change to Such Particulars by a Partner to the LLP.
Form 9 for Consent by Designated Partners, pursuant to Section 7(3) to the Limited Liability Partnership Act, 2008, and Rule 7 of the Limited Liability Partnership Rules, 2009.
Form 12 for intimating change in communication address for service of documents.
Form 15 for Change in the Registered Office within 30 days of change.

Non-compliance of any of the mandatory requirements may lead to hefty penalties.

Limited Liability Partnership (Second Amendment) Rules, 2022

LLP (Amendment) Act, 2022, was enacted to introduce certain changes and improvements to the existing LLP Act, 2008, with the aim of facilitating law-abiding businesses and streamlining processes.

Decriminalization: The bill seeks to decriminalize certain provisions of the LLP Act, 2008, meaning that non-compliance with those provisions would no longer be treated as a criminal offense. This change aims to reduce the burden on businesses and promote ease of doing business.
Adjudicating officers and special courts: The bill provides for the appointment of adjudicating officers and special courts to handle matters related to limited liability partnerships. This step aims to expedite dispute resolution and improve the efficiency of legal proceedings.
Formation of Small Limited Liability Partnerships: The bill introduces the concept of a Small Limited Liability Partnership, which is likely aimed at providing a simpler and more flexible structure for smaller businesses. Specific details regarding the formation and functioning of Small LLPs would be outlined in the bill or accompanying rules.
Introduction of new forms: The LLP (Amendment) Rules incorporate two new forms, Form 16A and Form 33 LLP. These forms likely serve specific purposes related to compliance, reporting, or other requirements under the LLP Act.
Revised fee norms: The LLP (Amendment) Rules also include revised fee norms for Limited Liability Partnerships. These fee revisions might relate to various aspects such as registration, filing of documents, or any other services provided by the government related to LLPs.

Some key provisions

Limited Liability Partnership (Second Amendment) Rules, 2022

There can be five Designated Partners (without having DPIN) (earlier it was 2)
Streamlining LLP incorporation process (FiLLiP form is now web-based like SPICe+)
PAN and TAN are allotted along with the Certificate of Incorporation itself.
All LLP forms are web-based, eg: Form 9 for filing Consent of Partners.
Form-8 (Statement of Solvency and Annual Return) will also include disclosures concerning Contingent Liability.
Statement of Account and Solvency shall be signed on behalf of the LLP by an Interim Resolution Professional (IRP) or LLP Administrator. This applies where Corporate Insolvency Resolution Process (CIRP) has been initiated against the limited liability partnership under the IBC, 2016 or LLP Act, 2008

FAQ’s

What Documents Required for availing DPIN for LLP Partners ?

To obtain a Designated Partner Identification Number (DPIN), the following documents are typically required:

Applicant's Photo:

A recent passport-sized photograph of the individual applying for the DPIN.

Applicant Identity Proof (duly attested):

A valid identity proof document that establishes the applicant's identity, document needs to be attested by a gazetted officer, notary, or practicing chartered accountant/company secretary/cost accountant. Acceptable identity proof documents may include:-

- PAN Card:Mandatory, Permanent Account Number (PAN) card issued by the Income Tax Department. In some cases, a self-attested copy may be accepted.

- Passport: A valid passport as an identity proof document, particularly for foreign nationals.

Applicant Address Proof (duly attested):

A document that serves as proof of the applicant's residential address. This document should also be duly attested by a gazetted officer, notary, or practicing chartered accountant/company secretary/cost accountant. Acceptable address proof documents may include:

- Aadhaar Card: The Aadhaar card is issued by the Unique Identification Authority of India (UIDAI).

- Voter ID Card: Voter Identification Card issued by the Election Commission of India.

- Driving License: Valid driving license issued by the regional transport office.

- Utility Bills not older than two months: Recent utility bills (electricity bill, water bill, gas bill, etc.) in the applicant's name.

- Bank Statement not older than two months: A recent bank statement showing the applicant's address.

Details Particulars:

Email ID, Phone No., Place of Birth, Educational Qualification, Date of Birth, Nationality, Citizenship, etc.

What is an LLP Concepts ?

A Limited Liability Partnership (LLP) is a unique type of business entity that combines the advantages of limited liability offered by a company with the flexibility of a partnership.
One of the key features of an LLP is that it can continue its operations regardless of any changes in its partners. It has the ability to enter into contracts and own property in its own name.
As a separate legal entity, the LLP is fully liable for its obligations, but the liability of individual partners is limited to their agreed contribution to the LLP.
Importantly, no partner is held accountable for the unauthorized actions or decisions of other partners. This means that each partner is protected from being jointly liable for the wrongful business choices or misconduct of another partner.
The rights and responsibilities of the partners within an LLP are governed by an agreement either between the partners themselves or between the partners and the LLP, depending on the circumstances.
While the LLP enjoys the benefits of limited liability, it still remains liable for its other obligations as a separate legal entity.
Due to its blend of corporate and partnership characteristics, an LLP is often described as a hybrid between a company and a partnership.

How LLP Different from the Company ?

The main differences between a Limited Liability Partnership (LLP) and a company are:-

Governance: A company's internal governance is regulated by statutory laws, while an LLP's governance is determined by a contractual agreement between partners.
Management-ownership divide: In a company, there is a separation between management and ownership, whereas in an LLP, the partners are both owners and managers.
Flexibility: LLPs offer more flexibility in terms of defining roles, responsibilities, profit-sharing, and decision-making processes through the partnership agreement including Company Can be easily converted into the LLP.
Compliance requirements: LLPs generally have fewer compliance obligations compared to companies, reducing administrative complexity and costs.

Conclusion:

Compliance holds significant importance for a Limited Liability Partnership (LLP) as it serves several crucial purposes.

Firstly, compliance ensures that the LLP operates within the legal framework and fulfills its obligations under applicable laws and regulations, Non-compliance can lead to severe penalties, fines, or legal consequences that can negatively impact the LLP's operations and reputation.

Secondly, compliance plays a vital role in protecting the limited liability status of the partners. By adhering to compliance requirements, partners can shield their personal assets from being held accountable for the liabilities and debts of the LLP, This is a fundamental advantage of the LLP structure, and maintaining compliance safeguards this protection.

Furthermore, compliance fosters good governance practices within the LLP, establishes transparency, accountability, and ethical conduct, which are essential for the smooth functioning and long-term sustainability of the business. Compliance frameworks help set guidelines for decision-making processes, financial management, and reporting, ensuring that the interests of all stakeholders are considered and protected.

Financial management is another aspect where compliance plays a crucial role, Proper compliance necessitates the maintenance of accurate financial records, conducting regular audits, and filing timely financial statements, promotes effective financial management, enables informed decision-making, and enhances trust among investors, lenders, and other stakeholders. Moreover, compliance contributes to building investor confidence. Compliant LLPs demonstrate a commitment to integrity, reliability, and responsible business practices, inspires trust among potential investors and partners, enhancing the LLP's credibility and attracting investment opportunities.