Partnership Deed for Firms in India

Mar 15, 2024
Private Limited Company vs. Limited Liability Partnerships

A Partnership Deed is a legal document that outlines the rights, responsibilities, and obligations of individuals forming a partnership.

Typically drafted at the beginning of the partnership, the deed includes essential details such as the business name, purpose, and location. It also incorporates various clauses that highlight details about the partners, including aspects such as profit-loss sharing, salary, interest on capital, drawings, and the procedures for admitting a new partner.

In this blog, we’ll talk about how the Partnership Deed acts as the foundation for all partnership operations.

Table of Contents

Format of a Partnership Deed

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The format of a partnership deed may vary based on the specific requirements of the partners and the nature of the business. However, a typical partnership deed includes the following essential elements:

  • Name of the Partnership:
    The official business name under which the partnership operates is stated, along with the physical address where the primary business activities occur. This section also highlights the duration of the partnership firm alongside the date of the commencement.
  • Details of the Partners:
    This section includes the full name, address, and relevant particulars of the Individuals participating in the Partnership.
  • Purpose:
    Here, the nature and scope of the business activities conducted by the partnership is clearly stated. The firm shall have the power to fulfill the objectives of thecompany and conduct any such lawful business activities.
  • Capital Contribution:
    The total capital of the firm and the individual share contributed by each partner are to be mentioned here. The contribution can be in cash, goods, or property on agreed values.
  • Profit and Loss Sharing:
    It clearly articulates the agreed-upon ratio or percentage in which profits and losses will be distributed among the partners.
  • Financial Decisions:
    It includes information such as the partners' salary and commission, permissive drawings from the firm for each partner, the interest payable to the firm on these drawings, partnership loans, and other relevant details.
  • Admission and Retirement of Partners:
    This part outlines the criteria and process for admitting new partners into the business. Similarly, it details the procedures for the retirement or withdrawal of existing partners.
  • Dispute Resolution:
    Procedures for resolving disputes among partners are established. This may include mechanisms for mediation or arbitration to address conflicts and maintain a harmonious partnership.
  • Dissolution:
    It states the conditions and procedures for the dissolution of the partnership which highlights the distribution of assets, settlement of liabilities, and the overall process of winding up the business.
  • Witnesses and Signatures:
    The partnership deed is formally executed with the signatures of all partners, and done in the presence of witnesses.

How to draft a Partnership Deed?

A partnership deed can be a verbal or written agreement outlining the rights, responsibilities, profit-sharing, and other obligations of the partners.

While it can be recorded verbally, it is highly advisable to formalize a written partnership deed with the Registrar of Firms as it aids in resolving potential disputes. It also proves beneficial for tax purposes and ensures the formal registration of the partnership firm.

  • The Partnership Deed, formulated by the partners, must be executed on stamp paper with a minimum value of Rs. 200, as per the Indian Stamp Act.
  • Each partner should retain a copy of the partnership deed for future reference.
  • Once stamped, the Partnership deed is attached with the application to the Registrar of Firms for formal registration and legal validation.

As per the Partnership Act, Registration of Partnership Firms is optional, but if you still choose to register your firm-

The application should be accompanied by essential documents, including a duly filled affidavit, a certified true copy of the Partnership Deed, and proof of ownership or a rental/lease agreement for the main business location.

Validity of the Partnership Deed

The validity of the firm is mentioned in the deed, whether it's for a limited period, for a specific project or for an unlimited period.

Note: A partnership deed that has been notarized alone does not hold legal validity in the event of legal disputes. However, if the partnership firm is formally registered with RoF, the partnership deed will be recognized as having legal standing.

Fees for the Partnership Deed in India

The Partnership Deed must be executed on a stamp paper with a minimum value of Rs. 200, as per the Indian Stamp Act.

However, Partnership registration fees vary among states due to different compliance requirements and stamp duty rates. The cost for registering a Partnership Firm ranges from Rs. 500 to Rs. 3000.

Note: Stamp duty is calculated based on partner contributions and follows state-specific regulations.

Alterations in the Partnership Deed

Partners have the flexibility to modify, alter, or change the partnership deed through mutual agreement. All partners are required to sign the amended deed.

Subsequently, the modified partnership deed should be registered at the Sub-Registrar's office, where the original deed was registered. Additionally, it is necessary to submit the modified deed to the Registrar of Firms for record-keeping purposes.

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  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

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  • Service-based businesses
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One Person Company
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  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
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  • Service-based businesses
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Limited Liability Partnership
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BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

Related Posts

How to Convert a One Person Company (OPC) to LLP in India

How to Convert a One Person Company (OPC) to LLP in India

As India's entrepreneurial ecosystem evolves, founders now have access to a range of legal business structures tailored to different growth stages and ownership goals. From sole proprietorships and partnerships to private limited companies and, more recently, One Person Companies (OPCs) and Limited Liability Partnerships (LLPs) are among the most popular. 

While a One-Person Company (OPC) is ideal for solo entrepreneurs starting small, many founders later seek more flexibility, lower compliance, and shared ownership, making a Limited Liability Partnership (LLP) an attractive alternative.

If you’re planning to scale or bring in partners, converting your OPC to an LLP could be the right move. This blog walks you through the concept, legal framework, and procedure for converting an OPC to an LLP in India.

Table of Contents

Limited Liability Partnership (LLP)

An LLP is a hybrid business structure that combines the benefits of a company (limited liability) with the flexibility of a partnership. Some key features include:

  • Minimum two partners required
  • Liability of partners is limited to their contribution
  • No minimum capital requirement
  • Fewer compliance requirements than a company
  • Separate legal identity from its partners

One Person Company (OPC)

Introduced under the Companies Act, 2013, an OPC allows a single individual to operate a corporate entity. It offers:

  • Limited liability
  • Separate legal identity
  • Easier fundraising compared to a sole proprietorship
  • Greater credibility in business dealings

However, OPCs face limitations like:

  • Restrictions on fundraising
  • Mandatory conversion if turnover exceeds ₹2 crore or capital exceeds ₹50 lakh
  • Cannot have more than one member

Conversion of OPC to LLP

OPC conversion to LLP is governed by the Companies Act, 2013 and the Limited Liability Partnership Act, 2008. While direct provisions for OPC-to-LLP conversion are not explicitly provided, companies (including OPCs) can be converted into LLPs under Section 366 of the Companies Act and the Second Schedule of the LLP Act.

Understanding the Legal Provisions for Conversion of OPC to LLP

The legal path for converting an OPC to an LLP involves:

  • Section 366 of the Companies Act, 2013 (deals with companies being converted into LLPs)
  • Second Schedule of the LLP Act, 2008 (provides the procedure for such conversions)
  • Form FiLLiP and Form 18 under the LLP Rules, 2009

Note: Prior approval from the Registrar of Companies (ROC) is mandatory.

Related Read: ROC Compliance Calendar for 2025–2026

Eligibility Conditions and Compliance Steps for Conversion

To be eligible for conversion:

  • Before conversion, the OPC must have at least two shareholders (LLPs require a minimum of two partners).
  • No active defaults in filing annual returns, income tax, or other statutory dues.
  • All secured creditors (if any) must give their consent.
  • The company should not have applied for winding up or struck-off status.

Compliance steps include:

  1. Holding a Board Meeting and passing a resolution for conversion
  2. Increasing the number of members/directors to meet LLP requirements
  3. Obtaining name approval through RUN–LLP or FiLLiP form
  4. Filing Form FiLLiP and Form 18 with ROC
  5. Executing an LLP Agreement within 30 days of incorporation

Looking to switch from OPC to LLP? Get professional help for a smooth and compliant business conversion with Razorpay Rize's LLP Registration Service.

Documents Furnished along with Form 18

Form 18 is the declaration for conversion and must be supported with:

  • Board resolution for conversion
  • Consent of all shareholders
  • Statement of assets and liabilities certified by a CA
  • List of creditors and their consent
  • Latest income tax return acknowledgement
  • Copy of PAN card and Aadhaar of all proposed partners
  • Address proof of the registered office of the LLP
  • NOC from the property owner (if rented office)

Procedure for Conversion of OPC to LLP

Here’s a step-by-step breakdown:

  1. Board Resolution: Approve the conversion plan and authorise directors to file the necessary forms.

  2. Increase Number of Members: Since an LLP requires at least two partners, the OPC must first induct another shareholder.

  3. DIN & DSC: Ensure all partners have a Director Identification Number (DIN) and Digital Signature Certificate (DSC).

  4. Name Approval: Apply for name reservation using RUN–LLP or through FiLLiP.

  5. Form FiLLiP Filing: File FiLLiP with ROC for incorporating the LLP.

  6. Attach Form 18: While filing FiLLiP, attach Form 18 with the required documents.

  7. Certificate of Incorporation: On approval, the ROC will issue a Certificate of Incorporation for the LLP.

  8. Execute LLP Agreement: Draft and file the LLP Agreement within 30 days.

  9. Apply for PAN, TAN & GST: Update statutory registrations with new LLP details.

  10. Close OPC Bank Account & Update Records: Close existing bank accounts of OPC and update stakeholders.

Frequently Asked Questions (FAQs)

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Private Limited Company
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1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

Why convert an OPC into an LLP?

Converting to an LLP offers greater flexibility, allows multiple partners, reduces compliance burden, and enables easier capital infusion, making it suitable for scaling beyond a single founder.

Is it mandatory to get creditor consent for conversion?

Yes. Obtaining written consent from creditors is required, as their rights could be affected during the conversion process.

Can an OPC with outstanding debts be converted into an LLP?

Yes, but all creditors must be informed, and their no-objection certificates (NOCs) must be secured. The LLP will assume all debts and liabilities of the OPC post-conversion.

Will the new LLP retain the OPC’s assets and liabilities?

Yes. Upon conversion, all assets, liabilities, obligations, and agreements of the OPC automatically vest in the LLP.

Do tax implications arise during conversion?

If the conversion meets certain conditions under the Income Tax Act (e.g., continuity of business and ownership), it can be tax-neutral. Otherwise, capital gains tax or other liabilities may apply. It’s advisable to consult a tax expert.

Mukesh Goyal

Mukesh Goyal is a startup enthusiast and problem-solver, currently leading the Rize Company Registration Charter at Razorpay, where he’s helping simplify the way early-stage founders start and scale their businesses. With a deep understanding of the regulatory and operational hurdles that startups face, Mukesh is at the forefront of building founder-first experiences within India’s growing startup ecosystem.

An alumnus of FMS Delhi, Mukesh cracked CAT 2016 with a perfect 100 percentile- a milestone that opened new doors and laid the foundation for a career rooted in impact, scale, and community.

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Advantages of One Person Company: OPC Benefits Explained

Advantages of One Person Company: OPC Benefits Explained

An OPC is a unique business structure introduced by the Companies Act 2013 in India. It allows a single individual to form and operate a company, combining the benefits of both a sole proprietorship and a private limited company. OPC's meaning is straightforward - it is a company with only one member who is the sole shareholder and director. 

The primary objective behind introducing the OPC concept was to encourage solo entrepreneurship and facilitate the corporatisation of micro, small and medium enterprises (MSMEs) in India.

Table of Contents

What is the Nature of a One Person Company in India?

As per the definition provided in the Companies Act 2013, an OPC is a private limited company with only one member. The sole shareholder of the OPC holds 100% of the company's shares and is entitled to all the profits generated by the business. The full form of OPC is "One Person Company," emphasising its single-member structure.

The importance of OPC lies in its ability to provide a formal corporate structure to sole proprietors and small business owners. By registering as an OPC, entrepreneurs can enjoy the benefits of a separate legal entity while maintaining complete control over their business operations. This unique combination of sole ownership and corporate features makes OPC an attractive choice for many budding entrepreneurs in India.

Benefits of OPC Company

Next up, let us understand why an OPC company will be right for you:

1. Benefits of Being Small Scale Industries

One of the key advantages of a one person company is its eligibility to be registered as a Micro, Small or Medium Enterprise (MSME). By obtaining MSME registration, OPCs can avail various benefits provided by the government, such as:

  • Priority sector lending from banks
  • Collateral-free loans up to ₹10 lakhs
  • Subsidy on patent registration
  • Reimbursement of ISO certification expenses
  • Concession on electricity bills
  • Exemption from excise duties

These MSME benefits can significantly reduce the financial burden on small businesses and help them grow faster.

2. Single Owner

Unlike partnership firms or private limited companies, an OPC has only one owner who holds all the shares and has complete control over the company's decision-making process. This streamlined ownership structure offers several benefits for OPC company, such as:

  • Faster decision-making without the need for consensus among multiple partners or directors
  • Flexibility to adapt quickly to changing market conditions
  • Ability to maintain confidentiality of business strategies and plans
  • Elimination of potential conflicts among partners or shareholders

3. Credit Rating

OPCs find it easier to obtain loans and credit facilities from banks and financial institutions than sole proprietorships. This is because OPCs have a separate legal identity and their financial statements are available in the public domain, allowing lenders to assess their creditworthiness more accurately. A good credit rating can help OPCs secure funding at competitive interest rates, providing a significant advantage over unregistered businesses.

4. OPC Benefits under Income Tax Law

OPCs enjoy certain one person company tax benefits under the Income Tax Act, 1961. Some of these advantages include:

  • Lower corporate tax rate of 25% for OPCs with an annual turnover of up to ₹250 crores.
  • Exemption from Minimum Alternate Tax (MAT) for OPCs with an annual turnover of up to ₹5 crores.
  • Ability to carry forward and set off losses for up to 8 years.
  • Deduction of up to ₹1.5 lakhs under Section 80C for investments made by the OPC owner.

These tax benefits can help OPCs optimise their tax liabilities and retain more profits for reinvestment in the business.

Received Interest Rate on any Late Payment

Under the MSME Development Act, 2006, OPCs registered as MSMEs are entitled to receive interest on delayed payments from their buyers. If a buyer fails to make payment within 45 days of accepting the goods or services, the OPC can charge an interest rate of three times the bank rate notified by the Reserve Bank of India (RBI). This provision helps ensure timely payments and improves the cash flow situation for small businesses.

6. Increase in Trust and Status

By registering as an OPC, small businesses can enhance their credibility and reputation in the market. The formal corporate structure and public disclosure of financial statements instil greater trust among customers, suppliers and other stakeholders. This increased trust can lead to better business opportunities, higher customer loyalty and improved bargaining power in commercial transactions.

7. Easy Funding

Apart from institutional funding, OPCs can also raise capital from individual investors. The Companies Act allows OPCs to issue shares to up to 200 shareholders, providing an alternative route for raising funds. This option can be particularly useful for OPCs with high growth potential, as they can attract angel investors or venture capitalists to fund their expansion plans.

8. Limited Liability

One of the most significant benefits of OPC is the limited liability protection it offers to the owner. Unlike sole proprietorships, where the owner's personal assets are at risk in case of business liabilities, an OPC provides a corporate veil that separates the owner's personal assets from the company's obligations. In the event of any legal disputes or financial losses, the liability of the OPC owner is limited to the extent of their investment in the company.

9. One Person Company Tax Benefits

In addition to the income tax benefits mentioned earlier, OPCs also enjoy several other tax advantages. For instance, OPCs with an annual turnover of up to ₹2 crores can opt for the presumptive taxation scheme under Section 44AD of the Income Tax Act. Under this scheme, the OPC is required to pay tax on only 8% of its total turnover, reducing the compliance burden and tax liability significantly.

10. MSME Benefits

As discussed earlier, OPCs registered as MSMEs are eligible for various government schemes and subsidies. Some additional benefits include:

  • Preference for government tenders
  • Assistance in marketing and export promotion
  • Subsidies for participating in international trade fairs
  • Skill development and training programs for employees
  • Access to credit guarantee schemes

These benefits can provide a much-needed boost to small businesses, helping them compete with larger players in the market.

11. Ease of Management

Managing an OPC is relatively simpler compared to other business structures. With a single owner and no board of directors, decision-making is faster and less complicated. 

Additionally, OPCs have fewer compliance requirements under the Companies Act. For instance, OPCs are not required to hold annual general meetings or prepare cash flow statements. This reduced compliance burden allows OPC owners to focus more on their core business activities.

Eligibility Criteria for OPC

To register as an OPC, the following eligibility criteria must be met:

  • The OPC must have only one member who is an Indian citizen and resident. This ensures that the business is managed by someone who understands local regulations and market conditions.
  • The sole member must be a natural person, not a company or an institution. This stipulation reinforces the OPC's structure as a personal enterprise.
  • The member should not be a minor to ensure legal competency in business dealings.
  • The member should be of sound mind and not be declared insolvent by any court. This criterion ensures that the individual can manage the company's affairs effectively.
  • The member should not have been convicted of any offence related to company formation or management in the past five years, which helps maintain the integrity of business practices.
  • The member should not be a nominee or shareholder in any other OPC.

OPC Registration Process

The OPC registration process involves the following steps:

The registration process for an OPC is streamlined and can be completed online through the Ministry of Corporate Affairs - MCA portal. Here are the essential steps involved:

  1. Obtain a Digital Signature Certificate (DSC): The first step is to acquire a DSC for the sole member, which is necessary for signing electronic documents during the registration process.
  2. Apply for Director Identification Number (DIN): Following the DSC, the next step is to apply for a DIN, which is required for the proposed director of the OPC.
  3. Name Approval: The applicant must submit an application for name approval using Part A of the SPICe+ form on the MCA portal. It is advisable to propose at least two names to ensure one can be approved.
  4. Prepare Necessary Documents: Essential documents include: 
  • Memorandum of Association (MoA) and Articles of Association (AoA)
  • Proof of registered office address
  • Consent from the nominee
  • KYC documents for both the member and nominee
  1. File SPICe+ Form: Once all documents are prepared, submit Part B of the SPICe+ form along with all necessary attachments to complete the application for incorporation.
  2. Payment of Fees: Pay the requisite registration fees online, which may vary based on the company's nominal share capital.
  3. Certificate of Incorporation: If all details are accurate and compliant with regulations, the Registrar of Companies (ROC) will issue a Certificate of Incorporation, officially recognising the OPC as a legal entity.

This structured approach not only simplifies the registration process but also ensures that all legal requirements are met efficiently, making it easier for entrepreneurs to start their businesses as a One Person Company in India.

Conclusion

OPC offers a unique blend of sole ownership and corporate features, making them an attractive choice for solo entrepreneurs and small business owners in India. The benefits of an OPC company are numerous, ranging from limited liability protection and separate legal identity to tax advantages and easier access to credit. 

Additionally, the reduced compliance burden and simplified management structure make OPCs well-suited for individuals who want to focus on their core business activities without getting bogged down by excessive paperwork.

To register as an OPC, an individual must meet certain eligibility criteria and follow the prescribed registration process. Once incorporated, an OPC can enjoy various benefits available to MSMEs and small-scale industries, helping them compete effectively in the market.

In conclusion, the One Person Company is a progressive business structure that encourages solo entrepreneurship and facilitates the growth of small businesses in India. By providing a formal corporate framework with minimal compliance requirements, OPCs have opened up new avenues for aspiring entrepreneurs to turn their ideas into successful ventures.

Benefits of OPC - FAQs

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Private Limited Company
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1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is a one person company?

A one person company is a type of private limited company that has only one member who is the sole shareholder and director of the company. It was introduced in India by the Companies Act 2013, to encourage solo entrepreneurship and facilitate the corporatisation of small businesses.

What are OPC benefits in India?

Some of the key advantages of one person company in India include:

  • Limited liability protection for the owner
  • Separate legal identity from the owner
  • Easier access to credit and funding
  • Lower tax rates and tax benefits
  • Reduced compliance requirements
  • Simplified management structure
  • Eligibility for MSME benefits and schemes

However, OPCs also have certain limitations, such as restricted capital infusion and dependency on a single individual for decision-making. Together, these broadly sum up the advantages and disadvantages of a one person company. 

Who is eligible for OPC?

To be eligible for OPC registration, an individual must:

  • Be an Indian citizen and resident
  • Be a natural person, not a company or institution
  • Not be a minor or declared insolvent by any court
  • Not have been convicted of any offence related to company formation or management in the past five years
  • Not be a nominee or shareholder in any other OPC

What is the limit of OPC?

An OPC can have a maximum of one member and one director, who should be the same person. The paid-up share capital of an OPC is limited to ₹50 lakhs, and its average annual turnover should not exceed ₹2 crores in the immediately preceding three financial years. If an OPC crosses these thresholds, it must convert into a private or public limited company.

What is the importance of OPC?

The one person company concept is important because it provides a formal corporate structure to sole proprietors and small business owners, allowing them to enjoy the benefits of a separate legal entity while maintaining complete control over their business operations. OPCs help promote entrepreneurship, facilitate the growth of MSMEs and contribute to the country's overall economic development.

Form 11 LLP Annual Return: Filing, Due Date, Penalties & FAQs

Form 11 LLP Annual Return: Filing, Due Date, Penalties & FAQs

If you’re running a Limited Liability Partnership (LLP), compliance might not be the most exciting part of your business. However, it’s essential for keeping your operations smooth and hassle-free. One key requirement is filing Form 11, an annual return that keeps the government updated about your LLP's structure and partners.

In this blog, we’ll cover everything you need to know about Form 11 LLP, from filing procedures to penalties for non-compliance.

Table of Contents

What is Form 11 and How to File It? 

Form 11 is an Annual Return of LLP. Every LLP in India must file with the Registrar of Companies (RoC) under the Limited Liability Partnership Act, 2008. It serves as a comprehensive summary of the LLP's management and structure for the financial year.

Here’s what Form 11 LLP typically includes:

  1. General Information:
    • LLP Name.
    • LLP Identification Number (LLPIN).
    • Date of Incorporation.
  2. Partner Information:
    • Names and details of designated and other partners.
    • Changes in partnership during the financial year, such as additions, resignations, or reassignments.
  3. Contribution Details:
    • The total contribution received by the LLP from partners.
    • Contributions made by individual partners during the year.
  4. Declaration of Compliance:
    • A confirmation that the LLP has met its statutory obligations during the year.

Steps to File Form 11

Filing Form 11 is a straightforward process. Follow these steps to ensure compliance:

  1. Download Form 11:

Visit the Ministry of Corporate Affairs (MCA) portal and download the latest version of Form 11.

  1. Fill in Basic Details

Provide the LLP’s basic details, including:

  • LLPIN.
  • Date of Incorporation.
  • Business activities during the financial year.
  1. Enter Partner Information:
    • List all designated and non-designated partners.
    • Include details of any changes in partnership, such as additions or removals.
  2. Attach Supporting Documents:

Upload any supporting documentation, including agreements or resolutions, if applicable.

  1. Certify the Form:

Ensure the form is digitally signed by one of the designated partners using a Digital Signature Certificate (DSC).

  1. Submit on MCA Portal:

Upload the completed form and pay the prescribed filing fee. Fees depend on the LLP’s total contribution as per the LLP Agreement.

Due Date for Filing Annual Return (Form 11)

The due date for filing Form 11 is May 30 every year, covering the financial year ending on March 31.

Important Note:

  • Filing Form 11 is mandatory regardless of whether the LLP has started its business. Even dormant LLPs are required to submit their annual return.

If you don’t file before Form 11 LLP’s due date, you can be penalised, so it's crucial to adhere to the timeline.

Additional Fee (Penalty) for Belated Filing of Annual Return (Form 11)

Failure to file Form 11 on or before May 30 can lead to significant financial penalties and legal complications. 

  • A penalty of LLP form 11 late fee of ₹100 per day is imposed for each day the filing is delayed.
  • The penalty has no upper limit, which means prolonged delays can result in substantial fines.

Continued non-compliance may lead to the LLP being marked as inactive by the RoC. While the designated partners may face disqualification from holding similar roles in other companies or LLPs.

What Are The Prerequisites?

Before filing, ensure that you’re fulfilling certain Form 11 LLp requirements:

  1. The LLP is registered and has an active status on the MCA portal.
  2. A valid DPIN of the Partner.
  3. A Digital Signature Certificate (DSC) is available for at least one designated partner.
  4. All pending compliance forms, such as Form 3 (LLP Agreement), have been filed.

What Are the Documents to be Submitted Along with Form 11?

Depending on the changes or updates during the year, the following documents are required for Form 11 LLP submission:

  1. List of Partners:

A detailed list of designated and other partners, including their roles and contributions.

  1. Contribution Proof:

Evidence of the capital contributed by each partner during the financial year.

  1. Supporting Agreements:

Copies of resolutions or amendments to the LLP Agreement, if applicable.

  1. Additional Documents:

Any other documents as required by the MCA portal based on the LLP’s activities.

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Important Aspects to Note While Filing Annual Return for LLP

While LLP annual filling might seem straightforward, there are key details and considerations that can make a big difference. Overlooking these aspects could lead to errors, delays, or unnecessary penalties. To help you navigate this process smoothly, here are some important points to remember while filing your LLP’s annual return.

  1. Accuracy of Partner Details:

Ensure the names, roles, and contributions of all partners are correctly listed, as discrepancies can lead to rejections or penalties.

  1. Difference Between Forms:

Do not confuse Form 11 for LLP with Form 8, which deals with the financial health and solvency of the LLP. Both must be filed annually.

  1. Digital Signature Validity:

Verify the validity of the Digital Signature Certificate (DSC) before submission to avoid technical issues.

Certification in Annual Return (Form 11)

Certification plays a crucial role in the filing of Form 11 (Annual Return) for an LLP. It ensures that the information provided is accurate and compliant with the statutory requirements. 

While the form can be filed by the designated partner(s), certain conditions require additional certification by a practising professional, such as a Company Secretary.

When is Certification Required?

For LLPs meeting certain financial thresholds, certification of Form 11 by a professional ( Company Secretary) is mandatory:

  • If the LLP’s contribution exceeds ₹50 lakhs, or
  • If its turnover exceeds ₹5 crores,

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Frequently Asked Questions

What is the turnover limit for LLP Form 11?

The turnover limit for LLP Form 11 certification is ₹5 crores. If the LLP’s turnover exceeds this threshold during the financial year, the annual return must be certified by a practising Company Secretary.

What are the requirements for Form 11 certification?

Form 11 LLP requires certification from a practising Company Secretary if:

  1. The total contribution by the partners exceeds ₹50 lakhs, or
  2. The LLP’s turnover is more than ₹5 crores.

What happens if Form 11 is not submitted?

Failure to submit before Form 11 LLP’s due date results in penalties, which include:

  • A late filing fee of ₹100 per day until the form is submitted.
  • Additional compliance risks, including potential legal action or a change in the LLP’s status to “defaulting.”

What is Form 11 used for?

Form 11 is the Annual Return filed by LLPs to report the following details to the Registrar of Companies (RoC):

  • Information about the LLP's partners, including designated partners.
  • Changes in the structure or details of the LLP.

Summary of contributions made by the partners during the financial year.It ensures that the LLP remains compliant with the regulatory requirements under the LLP Act.

What does Section 11 provide under LLP?

Section 11 of the Limited Liability Partnership Act, 2008 outlines the procedural requirements for the incorporation of an LLP. It specifies the need to submit an incorporation document to the Registrar, along with necessary details like the name, address, and partner information of the LLP. 

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

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