Select Your Location
In simple words, Offence means a breach of a Law or Rule. Offences and Penalties come from non-compliance with the provisions of the Act. When it comes to LLP Act, there are various provisions to elaborate Offence under LLP Act.
Offences and penalties arising from the non-compliance of the provisions of the Act are explained under the Act. Any default/non-compliance like non-filing of forms within a stipulated time can be filed with the additional late fee. The late fee would be payable at the rate of rupee one hundred per day after the expiry of the date of filing (as prescribed in relevant provision) up to a period of three hundred days.
Table of Contents
Compound means to settle a matter by payment of the monetary penalty. In simple word, it is an admission of guilt. In the compounding process, the applicant may either himself or on receipt of notice of default of prosecution, admits the commission of default. The applicant makes an application for compounding of the offence. The Central Government levies the penalty to the defaulters for such defaults.
In the Compoundable offences, the applicant has the right to compound the matter with accused.
Offences under LLP can be classified into two parts:
The offences which are punishable only by the fine can be compounded under the LLP Act. The Central Government has the right to compound the offence by collecting fine which may extend to maximum fine prescribed for the offence.
The Judicial Magistrate of the first class or the Metropolitan Magistrate shall have jurisdiction to try offences under the LLP Act.
The Offences in the Act provide for punishment by way of charging fine or imprisonment. Such punishment has been provided for in respect of violations relating to:
The application shall be filed in LLP Form no. 31 to Registrar. The details to be filled in Form 31 are as follows:
The MCA has proposed to decriminalize few of the compoundable offences under LLP Act involving minor procedural violations or technical violations. This is in order to ensure greater ease of doing business in India.
The ministry stated that they have decided to review the penal provisions to decriminalize compoundable offences that don’t involve any harm to public interest. The government had earlier taken a lot of similar actions with decriminalization of certain offences under Companies Act.
The offences that are proposed to be decriminalized include non-compliance with eligibility and appointment of designated partner, non-compliance with maintenance of books of accounts or other records or non-compliance with filing of annual return. This could be a major relief for small businesses.
Many start-ups choose to be registered as LLP because of its benefits for the small scale business. There was an increase of 55% in LLP registration. The provision of compounding of offence has come as a huge relief for many people. In case you wish to know more on it, contact Enterslice.
Read our article:
Understanding the Provision Regarding Strike off of LLP
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
Black money has been the subject of heated political debate in India for a long time. Successiv...
The Apex Court pronounced a judgement in the case titled Tata Motors Vs The Brihan Mumbai Elect...
Since economies are moving towards digitalisation and making it feasible to conduct transaction...
The Alternative Investment Funds (AIFs) Pro-rata and Pari-Passu Rights Proposal Consultation Pa...
The Financial Action Task Force, i.e. FATF (the Force), is the global money laundering and terr...
Advance tax refers to the payment of the tax liability before the end of the relevant financia...
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
Are you human?: 5 + 4 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Ministry of Corporate Affairs (MCA) recently amended the provision relating to the strike off of LLP. The penal...
14 Apr, 2020
A Limited Liability Partnership is a partnership in which liabilities of some or all partners are limited. An LLP a...
20 Jan, 2018
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!