LIMITED LIABILITY PARTNERSHIP

1. LIMITED LIABILITY
PARTNERSHIP
Presented By:-
LAVESH SETHIA

2. LLP ACT, 08
CHAPTERS
14
SECTIONS
81
SCHEDULES
4
RULES & FORMS
16 Chapters
40 Rules
29 Forms
03 Annexures
THE ACT –
OUTLINE

3. Introduction
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 Limited Liability Partnership
 Hybrid between private ltd. company & partnership firm
Need for LLP:- Majorcauses for theadvent of LLP are-
 To enable the professionals to deal in international activities on the
concept of Limited Liability which was earlier not possible due to
various restrictions
 To remove the restriction posed by Indian partnershipAct, 1932 that
professionals are not allowed to have more than 10 or 20 partners.
LLPAct removed the above obstacles.
Partnership
Firm
Limited
Liability
Partnership
Private Limited
Companies

4. ANNUAL COMPLIANCES OF
LLP
• Annual returns are filed in Form 11 - within 60 days
of the closure of the Financial year (i.e.3oth May
every year). In case the annual turnover of the LLP
crosses Rs 5 crores or the Capital contribution from
Partners exceeds more than Rs 50 Lakhs the
Annual return should be accompanied by a
Certificate from Practising Company Secretary.
• Statement of Solvency in Form 8 – before 30th of
October every year – Penalty Rs.100 per day

5. Audit & Taxation
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Requirementof Audit
Statutoryaudit is mandatory if annual turnover is more than
`40 lacs orcontribution exceeds ` 25 lacs
Taxaudit is mandatory if turnoverexceeds ` 60 lacs
Taxation on LLP
LLP’s will be treated as Partnership Firms for the purpose of
Income Tax w
.e.f assessment year 2010-11
Nosurchargewill be levied on income tax.

6. Remuneration to partnerswill be taxed as “Income from
Business & Profession”
Nocapital gain on conversion of partnership firms/company
into LLP.
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7. CONVERSION - EXISTING FIRMS
INTO LLP
🞉 If all the partners agree to become part of LLP, the firm can
apply to ROC in prescribed format for such conversion.
🞉 On such conversion :-
• All the assets and liabilities of the firm would get vested in
LLP.
• Firm stands dissolved
• If Registered, will be removed from records.

8. CONVERSION OF COMPANY
INTO LLP
• Any existing private company or existing unlisted
public company can be converted into LLP by
complying with the Provisions of clause 58 and
Schedule III and IV of the LLP Act.
• Form 18 needs to be filed with the registrar along
with Form 2 for such conversion after getting the
name approved
• Once approved file form 3

9. CONVERSION OF COMPANY
INTO LLP
Form 18 to have the following attachments
• Statement of shareholders.
• Incorporation Documents & Subscribers Statements in Form
2 filed electronically.
• Statement of Assets and Liabilities of the company duly
certified as true
and correct by the auditor.

10. CONVERSION OF LLP INTO
COMPANY
• An LLP can be converted into a Pvt. Ltd. company as per the
provisions contained in Section 366 of the Companies Act,
2013,
• Prerequisites for conversion
• an LLP must have at least 7 partners (however as per
Companies Amendment Act, 2017 LLP with 2 partners can
be convert into Company),
• approval from all the partners is required,
• advertisement in newspaper is to be done in a local and a
national newspaper,
• Apply for name and file form URC-1

11. 21