All about small LLPs

small llp penalty

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

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