There is a new concept of small LLP introduced by the Limited Liability Partnership (Amendment) Act, 2021.
Technically, the central pursuit after welcoming this latter category of LLP is to oblige Small businesses in the ease of doing business in India.
The Government has brought various measures in recent years to ease business hardships in India.
Small Limited Liability Partnership-Definition
The Amendment Act, has distinctly defined a Small Limited Liability partnership to denote any LLP:
i. the Contribution of which, does not exceed twenty-five lakh rupees (Rs. 25,00,000) or such higher amount, not exceeding five crore rupees, as may be prescribed; and
ii. the Turnover of which, as per the Statement of Accounts and Solvency for the immediately preceding financial year, does not exceed forty lakh rupees (Rs. 40,00,000) or such higher amount, not exceeding fifty crore rupees, as may be prescribed; or
iii. which meets such other requirements as may be prescribed, and fulfills such terms and conditions as may be prescribed;
This new concept came into effect from 01st April, 2022, by LLP Amendment Act, 2021.
Advantages of Small LLP-
1. Lesser Additional Fees-
The provision of additional fees is quite inferior than the non-Small LLP’s.
| S. No. | Period of Delays | Small LLPs | Other than Small LLPs |
| 1 | Up to 15 days | One time | One time |
| 2 | 15 days -30 days | 2 time | 4 time |
| 3 | 30 days-60days | 4time | 8 time |
| 4 | 60 days-90days | 6time | 12time |
| 5 | 90 days-180days | 10time | 20time |
| 6 | 180 days-360days | 15time | 30 time |
| 7 | Beyond 360 days | Other than Form 8 &11: 25 time
For Form 8 & 11: 15times plus Rs. 10 per day beyond 360 days |
Other than Form 8 &11: 50 time
For Form 8 & 11: 30times plus Rs. 20 per day beyond 360 days |
2. Audit of Accounts:
The accounts of every LLP shall be audited in accordance with Rule 24 of LLP, Rules 2009.
Such rules, inter-alia, provides that any LLP,
- whose turnover does not exceed, in any financial year, forty lakh rupees, or
- whose contribution does not exceed twenty-five lakh rupees,
is not required to get its accounts audited.
Consequently, the provisions of Audit are not functional on the new concept of Small LLP’s.
Fundamentally the Small LLP doesn’t require to engage any professional and is qualified to prepare its financial statement merely with the signatures of Designated Partners.
3. Lesser ROC fees;
Apart from the additional fees, the ROC fees for forms like For Filing, registering or recording notice of appointment, cessation, change in name, address, designation of partner or designated partner, intimation of DPIN & Consent to become partner/designated partner in Form 4 are also lesser than that of non-Small LLP’S.
| S.No. | Particulars | Amount (in Rs.) |
| 1 | For Small LLP | 50 |
| 2 | For other than Small LLP | 150 |
Conclusion:
The concept of Small LLP is strived at providing ease of doing business and boosting the small businessman to operate with lesser complexities. The new concept can also boost Start ups in forms of LLP in India.
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