Taxmann's LLP Ready Reckoner book by V.S. Datey

This book is a comprehensive, hands-on resource covering India's Limited Liability Partnership (LLP) framework. It is structured to guide readers through every dimension of LLP law—from the initial stages of incorporation and routine management to taxation and eventual winding up—while balancing legislative analysis with practical illustrations.

It is particularly beneficial for professionals, including Lawyers, Chartered Accountants, Company Secretaries, and Cost Accountants, who frequently advise on LLP formation, compliance, and disputes. It also proves valuable for entrepreneurs, startups, and students.

The Present Publication is the 2025 Edition and has been amended up to 1^st December, 2024. This book is authored by Mr V.S. Datey, with the following noteworthy features:

• [Illustrative Examples and Drafts] Sample LLP agreements, standard resolutions, forms, and step-by-step procedures
• [Compliance Checklists] Practical pointers to ensure adherence to legal and procedural requirements
• [References to NCLT Orders and Case Laws] Relevant jurisprudence and decisions that clarify the interpretation of LLP provisions

The book's essence unfolds in fifteen main chapters, each addressing an integral component of LLP law.

• Overview of the LLP Act
• Outlines the historical context and the rationale behind introducing the LLP Act in India
• Highlights the flexibility LLPs offer over traditional partnerships and companies
• Examines significant recent amendments and developments in LLP Law
• Incorporation of LLP
• Details the procedure for incorporating an LLP, including name selection and approval
• Discusses necessary documentation, digital filing processes, and relevant fees
• Explains the roles of designated partners, obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN)
• Partner and Designated Partner
• Defines the rights, responsibilities, and liabilities of partners within an LLP structure
• Examines the qualifications and duties of designated partners, including their appointment/removal process
• Covers rules on contribution, partner admission/cessation, and compliance requirements
• LLP Agreement
• Explores the significance of the LLP Agreement as the foundational document governing partner rights and obligations
• Offers guidance on drafting, stamping, and filing the agreement and any amendments
• Includes sample and model agreements for various scenarios
• Accounts, Audit and Annual Returns of LLP
• Explains the statutory requirements for maintaining proper books of account
• Discusses when audits are required and procedures for appointing/removing auditors
• Covers the timely filing of annual returns and outlines penalties for non-compliance
• Routine Management of LLP
• Addresses day-to-day operational aspects, including partner meetings and drafting standard resolutions
• Emphasizes key statutory filings, internal governance protocols, and recordkeeping
• Administrative Control Over LLP
• Describes the authority of the Ministry of Corporate Affairs (MCA) and the Registrar of Companies to oversee LLPs
• Details procedures for inspections, maintaining official records, and enforcement actions in case of non-compliance
• Compromise and Arrangement
• Details legal methods for reorganizing LLPs, such as compromises, arrangements, amalgamations, or reconstructions
• Explores the process before the National Company Law Tribunal (NCLT) and the roles of creditors, partners, and regulators
• Winding up and Strike off Defunct LLP
• Discusses both voluntary and compulsory (Tribunal-driven) winding-up procedures, as well as pertinent legal prerequisites
• Outlines the process for striking off defunct LLPs from the register and the subsequent implications
• Investigation of Affairs of LLP
• Reviews the conditions under which government authorities may initiate an investigation
• Clarifies inspectors' powers to examine records and the impact on LLPs and their partners
• Offences, Punishments and Penalties
• Enumerates offences and potential liabilities arising from LLP operations, such as non-filing or false statements
• Explains adjudication, compounding of offences, and the role of Special Courts
• Details of fines, punishments, and imprisonment provisions
• Other Provisions in Respect of LLP
• Addresses topics like foreign LLPs and conversions between LLPs and companies
• Examines the requirements, procedures, and regulatory nuances associated with such transformations
• Taxation of LLP
• Highlights key income-tax aspects applicable to LLPs, including partner remuneration and interest
• Discusses the concept of Alternate Minimum Tax (AMT) and related procedural requirements for tax returns
• Foreign Direct Investment (FDI) in LLP
• Illustrates regulatory rules and guidelines for foreign investment in LLPs
• Clarifies eligible sectors, approval processes, and Reserve Bank of India (RBI) reporting duties
• Overseas Investment by LLP
• Explains how LLPs, as body corporates, can undertake overseas investments in compliance with FEMA (Foreign Exchange Management Act) regulations
• Summarizes the principal guidelines and procedures for making outbound investments