What is a Small LLP?
Introduced under the Limited Liability Partnership (Amendment) Act, 2021, effective April 1, 2022. Defined in Section 2(1)(ta) of the LLP Act, 2008: Small LLP is a LLP who meets both the below criteria:
-
- Turnover: Does not exceed ₹40 lakh in the previous financial year.
- Contribution: Does not exceed ₹25 lakh (capital contributed by partners).
🔍No-audit for small LLPs
Small LLPs are not required to conduct audit under section 34 of the LLP act. Accordingly , form 8 can be signed by the designated partners of the LLP.
💰Lesser penalty for small LLPs
If a small LLP or its partner, designated partner fails to comply with any provision of this Act, they will face a penalty equal to half of the specified amount, with a maximum of ₹1,00,000 for the LLP and ₹50,000 for each partner, designated partner, or other person.
⏰Additional fee for delay in filing of LLP forms:
Under LLP act, late fees for filing various e-form is prescribed for delayed filing of forms. Late fees payable is in multiple of normal fees. For Small LLPs lesser fees prescribed as follows.
| SI. No. | Period of delays | Small LLPs (Other Forms) | Other than Small LLPs (Other Forms) | Small LLPs (Form 8 & 11) | Other than Small LLPs (Form 8 & 11) |
|---|---|---|---|---|---|
| (a) | Upto 15 days | One time | One time | One time | One time |
| (b) | More than 15 days and upto 30 days | 2 times of normal filing fees | 4 times of normal filing fees | 2 times of normal filing fees | 4 times of normal filing fees |
| (c) | More than 30 days and upto 60 days | 4 times of normal filing fees | 8 times of normal filing fees | 4 times of normal filing fees | 8 times of normal filing fees |
| (d) | More than 60 days and upto 90 days | 6 times of normal filing fees | 12 times of normal filing fees | 6 times of normal filing fees | 12 times of normal filing fees |
| (e) | More than 90 days and upto 180 days | 10 times of normal filing fees | 20 times of normal filing fees | 10 times of normal filing fees | 20 times of normal filing fees |
| (f) | More than 180 days and upto 360 days | 15 times of normal filing fees | 30 times of normal filing fees | 15 times of normal filing fees | 30 times of normal filing fees |
| (g) | Beyond 360 days | 25 times of normal filing fees | 50 times of normal filing fees | 15 times normal filing fees plus Rs. 10 per day for every day delay beyond 360 days | 30 times normal filing fees plus Rs. 20 per day for every day delay beyond 360 days |
