Yes, all LLPs in India must meet annual compliance requirements. If a limited liability company does not meet the above standards, the government can impose fines. As a result, all limited liability companies in India have to comply with the law every year. Due to the importance of compliance, we recommend that each organization meet with the General Counsel and Chief Compliance Officer on a regular basis and at least quarterly. These meetings should discuss compliance matters and reaffirm that the General Counsel and each compliance officer have direct line authority to the board or compliance committee for any compliance matter that the general counsel or compliance officer should reasonably believe should be known to the board or committee. The LLP Act stipulates that a limited partnership must have at least two designated partners; otherwise, the other shareholders will be personally liable for LLP`s debts. At least two authorized partners are also required, one of whom must be an Indian citizen and both must be individuals and not companies or other legal entities. Since limited liability companies are separate legal organizations, the chosen partners are responsible for maintaining adequate accounts and generating an annual report. Limited liability partnerships must file their statement of account and solvency before thirty days after the end of the first six months of the fiscal year and their annual return within sixty days of the end of the fiscal year. Limited liability companies, unlike corporations, must have a fiscal year from April 1 to April 31.
March is underway. Accordingly, the bank statement and solvency must be completed by 30 October of each financial year. The LLP agreement authorizes the appointment of a portfolio manager in addition to the designated partners; However, this does not mean that the Senior Associate and the designated partner organizations are the same individuals. The managing partner is responsible for ensuring that all legal requirements are met. In our experience, there are two situations where the risk of non-compliance is highest for any organization: An LLP must hire a certified auditor when it is incorporated or established. In addition, all forms associated with the audit must be completed and submitted in a timely manner. LLP Annual MCA / ROC Key Compliances / Filings of LLP – Limited Liability Partnership in India Compliance. Thank you to your team for providing a timely compliance checklist for businesses, including LLPs. We look forward to signing up as a member, and your advice will be extremely helpful for timely updates.
For large organizations, responsibility and oversight for compliance is generally delegated to the person acting as the organization`s CEO, who in turn may delegate some of this responsibility to a General Counsel or Chief Compliance Officer. However, the person holding the position of Chief Executive Officer remains solely accountable to the Board of Directors for compliance with the rules of the organization, although the CEO may delegate authority to a General Counsel or Chief Compliance Officer. Under section 83 of the LLP Act, designated partners are required to comply with the provisions of this Act and to pay any fines that may result from their non-compliance. Designated partners in an LLP are required by law to complete certain documents, such as returns and taxes, in accordance with the LLP agreement. We generally recommend that the General Counsel or Compliance Officer follow Rule 1.13 of the Code of Professional Conduct as a guide: Designated Partners is fully responsible for the management and execution of all LLP actions and matters, including compliance with LLP Act regulations regarding documentation, returns and reporting. In comparison, LLP partners are only required to make contributions and are not liable for such actions. (ii) Any partnership may become a designated partner through and in accordance with the Limited Liability Partnership, and an association may cease to be a partner assigned by and in accordance with the Limited Partnership Agreement.